Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

You’re never too old for these fun and stimulating hobbies

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By Cher Zevala

Special to the Financial Independence Hub

One of the chief concerns regarding senior citizens, especially those who live alone or in assisted living facilities, is boredom. Experts in senior care know that when a person is bored or feels unstimulated this can escalate to depression, which is already another concern among the senior population.

While the lack of activity could be due to a physical ailment that prevents the person from doing things they loved to do — such as walking, running, or other highly physical activities — in many cases it’s simply that a little nudge and some positive guidance is needed. A caregiver can be instrumental in this role and encourage their client to be more active, mentally or physically.

If you work with or know a senior citizen who needs to be challenged, adding a hobby to their daily routine can make a world of difference in their mood and ultimately their overall health. These are just a few hobbies that are fun, challenging, and can help lift mood and energy levels.

Art

Art is one of the easiest hobbies to introduce because it comes in so many forms. From painting with watercolors to adult coloring books, art brings a sense of freedom and independence as there is no right or wrong way to do it; art is subjective.

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How to create financial sustainability for yourself

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Billy & Akaisha Kaderli, RetireEarlyLifestyle.com

By Billy and Akaisha Kaderli, RetireEarlyLifestyle.com

Special to the Financial Independence Hub

These days, no matter what the topic, the talk is all about sustainability.

In regards to financial sustainability, there are three legs to the stool: income, spending and Investments.

1.) Income

Income is derived from money you make through your job using physical or mental labor or both. Passive income can be created through property rentals, bond interest, dividends and or capital gains from investments.

Increasing income can be done by learning a new skill, getting a promotion, or taking on a better or second job. Maximizing your skills and continued education either formal or on your own is a valuable asset. This could be as easy as teaching yourself about investments in your down time. There are plenty of online tools available to learn this.

Also, don’t rule out that Social Security [or in Canada, CPP and OAS] will be available once you become eligible.

2.) Spending

How much you spend and the debt you carry are two areas that are completely manageable by you. The categories of largest spending in any household are housing, transport, taxes and food/entertainment. Depending where you live, it may make more sense to rent instead of buying a home, or rent out a room in the home you already own, or rent out a subsection of your home in order to help with the mortgage. Putting off that remodel of the bathroom or kitchen, or the re-do of the back yard will also allow you extra money to put into investments.

Regarding transportation, you could walk or bicycle to work, take public transportation instead of owning your own vehicle, car pool or use Uber or a ride sharing service. The cost of car ownership is over $8,000 per year, roughly $650 per month, or $22 per day according to AAA’s 2016 Your Driving Cost Study. How much of your day is spent covering your car expenses, which according to Fortune is parked 95% of the time?

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Retired Money: Retirement planning is about more than money

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Meta at her 100th birthday party early in December

My latest MoneySense Retired Money column was published today. Click on the highlighted text for the full piece: Retirement planning is about more than money.

The piece is based on a recent Seniors’ Luncheon hosted by the Toronto church I attend and as you will read, I was struck by how the experiences of these seniors — who ranged in age from 82 to 100 — reinforced the theme of my recently released co-authored book, Victory Lap Retirement.

In short, every senior at the table believed in continuing to work in some fashion even in their looming old age. Including 100-year-old Meta, pictured. While I changed the names of the other seniors in the article, Meta is a real name and used there and here with her permission.

Here’s the thing. Until she suffered a hip injury earlier this year, Meta was still working one or two half-days a week at a nearby printing firm. And at her 100th birthday celebration earlier this month, this continued work connection meant several of the people celebrating with her were from work, as well as the church, neighbours and various other circles.

And now that the din over her 100th birthday milestone has subsided, Meta told me last week that she wanted to return to work one day a week, because she misses her co-workers and she likes to get out of the house (she lives in the top floor of a house overlooking Lake Ontario, and has been there since the 1960s. The last thing she would want would be to move to an institution catering to seniors.)

The danger of retiring “too soon”

As for the senior men I chatted with that day, one regretted having voluntarily retired “too soon” at the tender age of 58: Kevin (not his real name) said he did so because he had a good teacher’s pension but when his wife passed away soon after, found himself with too much time on his hands.

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House shopping for Millennials

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By Barney Whistance

Special to the Financial Independence Hub

In the wake of a new generation now growing up and planning to settle down, one of the biggest concerns for them is finding a place to live. Finding a house for you and your spouse to live in is one of the most important decisions that you will have to take. Therefore, it should not be taken lightly. There are a lot of factors for you to consider when you set out to purchase or get a house on mortgage.  You have to be certain about your choice as you will be the one living with it for a major part of your life.

Your financial situation is the biggest aspect you have to consider when making a decision like that. Once you know your financial point and how much you can afford, you must decide on where you want to live.  Planning everything step by step always gets the work done more smoothly and also makes your choice easier.

Finances

Talk about your finances with your partner, so in order to set a budget, you already know how much you both have. Once you have done the initial financial scrutiny, you can decide which plan you should be applying for. Continue Reading…

How an RESP offsets the cost of post-secondary Education

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By Jo-Anne Wong

Special to the Financial Independence Hub

Post-secondary education is a necessity to get ahead in the new economy, but for many Canadians, attending university is out of reach due to rising tuition costs.

This why it’s now more important than ever for parents to start saving for their child’s education. Thankfully the Government of Canada offers one of the best ways to save for your child’s future through a Registered Education Savings Plan (RESP).

Rising Tuition Costs

According to Statistics Canada, tuition costs have increased by 40 per cent in the last ten years, and between 2014-2015 and 2015-2016 school years it rose by almost three per cent. The news is worse for parents in Ontario where the average cost of tuition is $8,114: the highest in Canada. If your child chooses to study out-of-province or overseas, fees will be significantly higher. Knowledge First Financial’s Guide to Education Costs in Canada projected that tuition could climb to over $14,000 by 2034. These figures do not account for living expenses. For example, four years of tuition, room and board could add up to $90,000 at the University of British Columbia.

The cost of tuition has been rising steadily over the last ten years and continues to outpace inflation. Compared to last year, students paid on average 3.2% more in tuition compared with the previous year, while the Consumer Price Index was 1.3%. According to Statistics Canada, the national average for university costs in 2015/2016 was approximately $19,500 for students in residence, and $10,000 for Guide to Education Costs in Canada projects that first year tuition could climb to over $14,000 by 2034. These figures do not account for living expenses, students who lived at home or did not have to pay for residence and meals. Students in Ontario have the greatest challenge, where tuition is the highest in the country.

These high costs have resulted in a record-high number of students applying for loans, which is putting them in debt. According to the 2015 survey of 18,000+ graduating university students conducted by the Canadian University Survey Consortium, the average student owed $26,819. Costs are not limited to university degrees, with 37 per cent of Canadians with student loan debt being non-degree students, attending vocational schools or other certificate programs, says Stats Canada.

 

RESP from Ottawa

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