All posts by Financial Independence Hub

How my 2020 Summer Health crisis left me grateful for past Money and Life Decisions

By Darin Diehl

Special to the Financial Independence Hub  

Figure 1 Darin Diehl (top right) in Post Workout Group shot with his trainer and classmates, May 17, 2020.

I was crushing it on the morning of May 17, 2020.  The kettle bells somehow felt a little lighter that Sunday: even as my trainer, who I have worked with for a decade, was driving us a little harder that morning. Three times a week my classmates and I gathered online for this punishment: with most of us taking in a yoga stretch class up to three more times a week with the same trainer. It had all become part of the Covid-19 lockdown routine, along with all the bread and cookie baking.

But later that morning I developed some discomfort horizontally across my chest that I thought might just be muscle strain. And while this sensation abated by midday, I also started to feel nauseous, headachy and would later develop the chills. These symptoms led me to bed for the next few days. My wife and I wondered about Covid, but by Thursday of that week all the symptoms had gone. However, I was now feeling a new chest irritation – more centred in my chest versus across my chest as before.

My wife’s cousin, a nurse, had sent us a list of updated Covid-19 symptoms and encouraged us to call Ontario Telehealth and walk through the screening questions. I waited till Friday, May 22 to do that. The nurse asked me all the Covid questions but was most interested in me describing the different chest pains I felt that day and five days earlier. Then, in a decision that I believe may have saved my life, she told me she believed I had suffered a heart attack and was ordering an ambulance.

Maybe you are thinking, ‘Of course you had a heart attack you idiot.’ But, hey, I had never had one before and there was no chest clutching or left arm pain – any of the stuff you hear about. So, as my wife, my younger of two daughters and son waited with me for the ambulance we mused that at least I’d get checked out and undergo a Covid-19 test.

“Mr. Diehl, you’ve had a heart attack.”

I was taken to the Covid-19 emergency intake at Trillium Health Partners, Mississauga Hospital just a 10-minute drive from our home. I was swabbed and blood was drawn for a battery of tests. At one point in the afternoon a doctor came to see me and said I’d likely be sent home and asked to self-isolate until they called with my Covid-19 test results. But he first wanted to conduct a couple more blood tests for specific heart attack indicators. I was arranging pick up with my wife when he returned a little later and told me, “Mr. Diehl, you’ve had a heart attack.”

The words, spoken so manner of fact, left me stunned. I recovered from the initial shock and asked what would happen next. The answer was more tests, including chest scans. The next day a cardiologist came by and explained that I would be undergoing an angiogram in a few days so they could see what was happening inside my heart. And it seemed that indeed that was a heart attack I’d experienced on Sunday, May 17th and that as a result the sack around my heart had become irritated and inflamed by the following Thursday, when I started to feel the second chest discomfort.

Later that evening the cardiologist paid me another visit to mention that one of the scans indicated nodules on both of my lungs which would need to be investigated. That night it all caught up to me. Alone in an isolated room (my Covid test result was still pending), no visitors allowed, and news of a heart attack and “some other problem” in my lungs bouncing around in my head, I cried for some time in fear and shock. What the hell just happened? I had been exercising regularly, had never been under treatment for high cholesterol and I was not a smoker.

Figure 2 A visit from Darin’s family in the parking lot outside his hospital room window.

By Sunday morning I arrived on the cardiac floor. My Covid-19 test was negative (I’d have three more negative tests before leaving the hospital). My angiogram was scheduled for the following Tuesday. A respiratory doctor had come in to talk to me about the nodules on my lungs, explaining that they could be a number of things, some more worrisome than others. At this point no one had said the word cancer, yet there it was taking up residence inside my thoughts. But for now, we’d all focus on the heart.

My angiogram revealed I would need at least four bypasses as some of the plumbing feeding my heart had blockages ranging from 30 per cent to almost 100 pe rcent. I was told I could be scheduled for the procedure by the end of the week. In fact, on Thursday morning a nurse came into my room and shaved my chest, arms, thighs and nether regions to prep me for possible surgery that afternoon.

But there was a problem. I had developed a gastrointestinal issue which at first, they thought might be a reaction to some of the myriad medications I was on. But by noon I learned my surgery was canceled because, as a doctor explained to me, I had a parasite. Confusion and incredulity were the feelings of the moment as the he asked if I’d recently been to a farm or agricultural plantation. I mean, it’s 2020 and all, but this was just nuts. “Perhaps you should test me for Ebola,” I quipped. He chuckled and said my system would clear the parasite in a day or two, so no worries.

My surgery was rescheduled for Monday, June 1st.  I was feeling good because I’d checked on the reputation of the surgeon and he was clearly an ace. In fact, to that point I had experienced an array of fantastic medical professionals – doctors, nurses and nurse practitioners, various technicians – all of them so well qualified and so compassionate. Continue Reading…

Top 7 things to know about Social Security

By Michael Morelli

Special to the Financial Independence Hub

When you are thinking about early retirement to fully enjoy retirement living, or thinking of postponing retirement, you need to know how and when it is best to take your Social Security benefits. When dealing with something as important as Social Security, you must make sure that you are receiving as much as possible. Comprehending the program will help to secure your future to a great extent. In this article, we have mentioned several essential things regarding Social Security that you ought to know.

What is Social Security?

Social Security happens to be the foundation of numerous Americans’ financial security, including disabled individuals, retirees, and families of the retired. Approximately 170 million Americans pay Social Security taxes at present, while 61 million individuals collect monthly benefits. Approximately one household in every 4 gets income from Social Security.

One can consider Social Security to be a pay-as-you-go scheme. This implies that today’s workers pay Social Security taxes into the program, and cash flows back out to the beneficiaries as monthly income. Social Security is not the same as company pensions, which happen to be “pre-funded” out there. The money will be accumulated beforehand in pre-funded programs such that it can be paid out to the workers of today once they retire. It is essential to fund the private plans beforehand to safeguard the employees provided the company shuts down or becomes bankrupt.

1.) Full Retirement Age (FRA)

The following paragraph mentions the full retirement age when you might be eligible to get full Social Security retirement benefits.

Here we have mentioned the year in which you were born and what will be the Full Retirement Age in that case.

1937 or before – 65

1938 – 65 + 2 months

1939 – 65 + 4 months

1940 – 65 + 6 months

1941 – 65 + 8 months

1942 – 65 + 10 months

1943 – 1954 – 66

1955 – 66 + 2 months

1956 – 66 + 4 months

1957 – 66 + 6 months

1958 – 66 + 8 months

1959 – 66 + 10 months

1960 or later – 67

2.) You can work while getting Social Security

You will have the option of taking Social Security so long as you happen to be 62 years of age. Yearly earning limitations have been set by the SSA – in case you have been getting Social Security benefits prior to your full retirement age, and you are earning in excess of the limit, there will be a reduction in your benefit payments temporarily depending on how much you are earning. Suppose you are earning $8,000 over the limit, your benefits will be minimized by $4,000. In case you can earn $12,000 over the limit, it will be reduced by $6,000.

However, the good thing is that you will not lose your benefits permanently in case they are reduced. On the other hand, your payment account will be calculated once again, such that you will get the withheld cash as soon as you reach your full retirement age)

3.) Social Security benefits may be Taxable

As per the SSA, several Social Security beneficiaries are going to pay taxes on their Social Security benefits. It will depend on how much you make listed on the income tax return. In case you file with an excess of $25,000 as an individual (or $32,000 jointly), it will be imperative for you to pay the federal income taxes on the benefits. However, the regulations for state income taxes differ from one state to another.

4.) Your payments can help your family

Let us suppose the monthly benefits, according to your Social Security card, happen to be more than that of your spouse. Continue Reading…

8 ways to protect Seniors from Financial Fraud

By Mikayla St. Clair

Special to the Financial Independence Hub

There are tons of financial scams aimed at taking advantage of senior citizens. One of the key reasons the elderly are targeted for scams is that many of them grew up when deals were made and based on a person’s word and character. A handshake, many years ago, was enough to trust someone. Many elderly and senior citizens grew up in an era when people were more trustworthy, and scams like financial fraud were not as prevalent as today. There are other reasons why the elderly are targets for financial fraud, and understanding how thieves go about stealing from senior citizens will go a long way in prevention. Here are eight ways to protect seniors from financial fraud.

1.) Shred sensitive documents

A good shredder can go a long way in preventing financial fraud, but it only works if you use it. Many people fail to shred sensitive documents and simply throw them in the trash. Thieves aren’t above going through your trash in hopes of gaining your social security number and other information they can use to open fraudulent accounts or gain access to accounts already open. Shredding the personal documents of seniors helps to prevent others from gaining access to their sensitive information and creating fraudulent accounts in the senior’s name.

2.) Check Credit reports regularly

It’s essential to check the credit reports of older adults under your care. Credit reports should be reviewed twice a year or annually at a minimum. Look for any errors, suspicious charges, or accounts that you don’t recognize. Correct these errors immediately and close any unauthorized accounts. Using a professional credit monitoring service to monitor a senior loved one’s credit is also an excellent way to protect the elderly from financial fraud.

3.) Be cautious of new relationships, friends, and family

Seniors can be more trusting than younger people, especially if they are lonely. Many thieves and fraudsters use loneliness as an entry-point into senior’s life to gain access to financial information or trick them into giving them money. It’s also important to be cautious of friends and family members who may have an addiction or severe financial problems. Sadly, many cases of financial fraud against the elderly are committed by a family member or friend.

4.) Use a Power of Attorney if necessary

In some instances, it may be necessary to take full control of a senior’s finances through a financial power of attorney. A financial power of attorney may be necessary when a person has a mental condition such as dementia or Alzheimer’s. Seniors with these disabilities are often targets because of their health.

A financial power of attorney can give you full control of a person’s finances. If the senior is a family member, discuss the matter with others in the family to determine the best choice for managing the person’s financing.

5.) Watch for changes in Spending

Keep an eye on the spending habits of any older adult in your care. Continue Reading…

More time is a goal worth chasing

By Mark Seed, MyOwnAdvisor

Special to the Financial Independence Hub

“Happy Weekend!” this blog or friends or others will exclaim!

On that note, most of us (myself included) are always so happy to see the weekend arrive, or a given weekday dawn, depending upon your schedule or shift of course to enjoy some well-deserved time off from work.

Yet as I inch closer to fulfilling my semi-retirement dreams (our latest financial independence update you can find right here) I often wonder if every day is going to feel like a Saturday in the years to come.

I mean, part of me hopes so, when I think of time. Finding a much broader, balanced approach to work and fun …

Here are some of the perspectives I’ve been thinking recently when it comes to work, play, time, and to the point of this blog, what does money have to do with it.

If you really enjoy your job, does it feel like work?

While there never seems to be enough time for anything these days outside of work (blame your lost downtime on your social media time for starters!), I’ve often wondered about folks who really, really love their job – does it feel like work to them anymore?

Here are some signs of that:

  • New tasks or assignments don’t annoy you or bother you, in fact, you might get your energy from them.
  • You enjoy seeing the results of your craft frequently.
  • You enjoy working with those around you or people you deliver products and services for.
  • You are continually inspired by work.

I’m sure there are more …

There are definitely elements of the above that apply to my current role with my employer but as I get closer to realizing my financial independence, I must say I’m very much looking forward to the day whereby my most of my time (therefore not money whatsoever) is the ultimate management goal.

While time is money can be true in many corporate circumstances, the inverse is true after you realize financial independence – money has purchased some discretionary, finite time for you to use as you please. Financial independence makes work either far more fun or just simply optional.

Money does buy happiness to a point

Despite rising incomes, standards of living increasing around the world over time, people are also feeling increasingly pressed for time, anxious and stressed about well-being. With this rising income, happiness only increases to a point – surveys from various studies have shown that money only buys so much happiness.

Depending on the study you want to draw from, psychologists have found that modest life satisfaction comes from earning anywhere between $60,000 to $75,000 USD per year. Some families with children of course may need (and want) more, let alone individuals as well.

Time Spent and Money Spent

Now, certainly, if you make more money than this income per year could you be happier? I suppose that is quite possible and very likely for many of us. But my point is based on many studies, considerable orders of money beyond this income-level will not buy the equivalent amount of increased happiness. The relationships you have and the stable family environment you might enjoy, probably do. Your health is your ultimate form of wealth. That well-being will give you tremendous happiness too. In fact, with your health, it has been written and studied that volunteering, just as one example of giving, has been shown to minimize stress, reduce incidence of depression, and reduce long-term cognitive impairment – helping us live longer and more notably, a happier life.

So, while making good money is all well and good; while having a high net worth can absolutely signal to you and others “you’ve made it” happiness unlike money has a tipping point. Money is only part of what might make you truly happy.

A good reminder that any art of comparison to others can be the thief of joy.

Time is the ultimate currency

When it comes to investing, we’ve all heard that it’s time in the market that becomes your best friend (not trying to time the market itself).

That’s because the earlier you start investing, the more time your money has to work for you. Continue Reading…

Online investment ideas during the Pandemic

By Veronica Baxter

Special to the Financial Independence Hub

Do you have an extra $500 or $1,000 and want to learn something about investing? This article will explore some interesting online investment vehicles that can teach you something about investing, make you some money, and perhaps even further your social ideals.

But before you invest …

Pay off your Credit Cards

Is that $500 or $1,000 really “extra” money you can afford to play around with? If you have any credit card balances, it’s not. Use that money to pay your credit cards off before you start investing. Why? Because no investment in that amount will bring a return greater than what you’ll save by not paying credit card interest on that revolving balance.

For example, let’s say you have $1,000 in credit card debt at 18% interest. If you pay the minimum of $60 on that debt each month, it will take you 20 months to pay off, and you will have paid $158 in interest.

No investment exists that can make you anything near the $158 you spent borrowing that $1,000 from your credit card lender for 20 months. Pay that credit card balance off with your “extra” money and save up another $500 or $1,000 to play with.

Contribute to your Employer’s 401(k)

If you are not yet contributing to your employer’s 401(k)[in the U.S., Canadian equivalent is a group RRSP or Defined Contribution pension plan], start doing so, especially if your employer offers a matching contribution. Why? First, because if you are not contributing at least the amount your employer matches, you are leaving free money on the table. Second, when you contribute to your employer’s 401(k), you do so with pre-tax dollars, and thereby reduce your taxable income. This lowers your income tax bracket and you pay less income tax overall.

Contributing to your employer’s 402(k) is a win-win for you, so do that before investing “extra” money.

Exploring virtual Investment vehicles

Investment Apps

There are myriad reputable investment apps for your smartphone that vary in the amount of control you have over your investments and trades, and the amount of advice and data available, and the type of accounts you can have. Here are a few, just as examples:

Most control and lowest Fees: Robinhood

Robinhood can be described as a sort of bare-bones app, and while there is no account minimum and there are no commissions on trades, there are also no additional accounts available such as retirement accounts, and there is no data on investments.

This type of app is for the person who wants to save on fees and is not afraid to research investments on their own.

Most Investment data: E*Trade

If you want to do your research and trade in the same app, this is one to consider. You can learn about a company’s earnings, dividends, company news, and metrics like debt-to-equity ratio. You do pay for this feature –  US$6.95 a trade. But beginners and experienced investors alike can appreciate the wide range of investment options available and the ability to invest in a way that is aligned with their risk tolerance.

Most Banking features: Stash

For only US$3 per month, this app offers management of your banking, investment, and retirement accounts in one place. Fractional shares of ETFs and stocks are available, but a limited selection. If you can pay $9 per month, the app offers an upgrade allowing access to investment research, two more accounts, and expanded reward features.

Stock Market Robo Advisors

Do you want professional help with investing but don’t want to pay for a financial advisor? Try a Robo Advisor. These offer varying degrees of assistance, control, automation, investment data, availability of investment types, and fees. Continue Reading…