Thursday, February 26, 2015
Wednesday, February 25, 2015
RRSP's are a Good Idea - Consider These Options Too
Some ideas are just plain bad.
I will be the last person to say that contributing to your registered retirement savings plan by the March 2 deadline is a bad idea. For most people, socking away money in an RRSP is the right thing to do. After all, you'll be investing for the future, enjoying tax savings today from the RRSP deduction, and experiencing tax-free growth inside the plan along the way. It's all good.
But if you've got limited financial resources - and who doesn't - it's at least worth looking at other options for your hard-earned money. Some of these may be a better idea in your situation.
Read this article from Dynamic Funds to learn more.
Tuesday, February 24, 2015
Viatical Settlements ("stranger-owned" life insurance) Illegal in Canada
Today, people over 80 years of age are the second fastest growing segment of the Canadian population. However, a recent study conducted by Statistics Canada concludes that the growing size of the senior population in Canada raises significant concerns on the next generation's ability to provide future care.
In the United States, these similarly changing demographics have resulted in an increased demand for products focused on meeting the financial needs of the elderly.
A particular product gaining popularity in recent years is the "viatical settlement". In its simplest form, a viatical settlement is a lump-sum payment paid today by an investor (the viatee) to a sick person (the viator) in exchange for the viator's death benefits under his/her life insurance policy sometime in the future.
Until recently, the so-called "viatical" experience has been primarily a U.S. phenomenon. Although these products are not legal in many Canadian provinces, there appears to be some credence that viatical settlements are coming to Canada.
Recently major Canadian Life Insurers have issued advisory’s on the application of ‘stranger owned’ life insurance. They reiterated their position of being against such arrangements and Life Insurance agents that participated would be in violation of provincial insurance regulations.
It was made clear that these companies would not accept policies where the third party that initiated the policy has no insurable interest in the life of the insured person.
Using insurance as an investment vehicle by a third party who has no real insurable interest constitutes a practice considered unhealthy for the industry.
Sunday, February 22, 2015
North Americans Living Longer
North Americans are living longer than ever, and the life expectancy gap between men and women continues to shrink.
Canadian life expectancy at birth reached a new high of 80.9 years during the period from 2006 to 2008, up 0.2 years from 2005 to 2007, according to a new report from Statistics Canada. Read more from the Globe and Mail.
A baby born in the U.S. in 2012 will live to a record 78.8 years old on average, as life expectancy grew and fewer Americans are dying from heart disease, cancer and other chronic illnesses. Read more from Bloomberg.com
On one side of the equation, this is great news. On the other side, questions that need to be asked might include:
- If still working, do I need to think about ways I can work beyond my early 60s?
- If retired, am I going to be OK if I/we live into our 90s?
- Am I saving enough towards retirement?
- What is my world going to look like in 25 years?
Subscribe to:
Comments (Atom)