Longevity & Aging

No doubt about it: at some point we’re neither semi-retired, findependent or fully retired. We’re out there in a retirement community or retirement home, and maybe for a few years near the end of this incarnation, some time to reflect on it all in a nursing home. Our Longevity & Aging category features our own unique blog posts, as well as blog feeds from Mark Venning’s ChangeRangers.com and other experts.

5 ways Seniors can avoid Financial Scams

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laptop-1571702_640By Barney Whistance

Special to the Financial Independence Hub

The older we get the more important it becomes to look after not only our own financial situation but that of our parents as well. No matter what they’ve saved and tucked away for retirement, those funds may be at risk due to cognitive declines as they age.

The Huffington Post reports that over $36 billion is scammed in senior fraud and financial abuse every year. This is only the tip of the iceberg when it comes to these types of elderly scams: law enforcement officials estimate that only about eight per cent of crimes are reported ever year.

CNBC reports that women are also twice as likely as men to become a victim of fraud. They are considered easier targets, especially if they are in their 80s and living alone.

While knowledge goes a long way towards combatting these scams, obviously it’s not going far enough. Here are five ways to help protect your loved ones from scams, frauds, and financial ruin in their naive older years:

1.) Know the scams

The first line of defense is to know more about the common scams. This will help you anticipate and expect certain fraudulent activity, give you an edge heading them off from the first contact.

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Annuities may have a place in your retirement investing

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Gold key with Annuity tag, with keyhole and cashCanadian annuities offer a predictable source of income, but we advise against buying them.

An annuity may be worth considering for part of your assets, depending on your age, investment experience, the time you want to devote to your investments, your desire to leave an estate to your heirs and other aspects of your retirement investing.

But a key drawback to annuities is that annuity rates are closely linked to interest rates, which are at historic lows. In addition, annuities have no liquidity. If interest rates and inflation move up, your annuity payments would remain fixed and you would lose purchasing power. Plus, you would have no way to rearrange your portfolio. This is why we generally advise against investing in Canadian annuities.

There are basically three types of Canadian annuities:

1.) Term-certain annuities are payable to you, or your estate, for a fixed number of years. Your estate will receive the payments even if you die. You could outlive this type of annuity.

2.) Single-life annuities are payable to you for as long as you are alive. These annuities may come with a minimum number of years of payments. If you die while the minimum payment period is still underway, future payments would go to your estate.

3.) Joint and last survivor life annuities are payable as long as you, or your spouse, are alive.

3 Ways Canadian Annuities can hurt Your Retirement Investing

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Third Age education: Later-life learning

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Mature students are very focused on their classes
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By Aaron Hector, Doherty & Bryant Financial Strategists

Special to the Financial Independence Hub

Have you ever wanted to do or learn something, but never seemed to have the time? With commitments to family, friends, your career and hobbies, it’s easy to see how life can get away from you.

The term ‘Third Age’ refers to the stage in life after which you have retired and your children are independent. This is the stage at which you become liberated and finally have extra time.

It’s back-to-school season for our youth this fall – but why not for you too? Let’s look at some options for lifelong learning opportunities available during your third age.

First, it doesn’t have to be expensive! There are a number of low-cost to no-cost education options available. Seniors are offered discounts on many different products and services; including reduced bank fees, transit passes, discounted meals and even tax breaks. Perhaps the single greatest of all such discounts is the offer of free tuition – which has been extended by many universities here in Canada. If you consider that one year’s tuition can cost over $10,000, then a four-year degree could equal $40,000 in savings. Of course, you don’t need to commit to a four-year degree; you could get plenty of enjoyment from taking a single personal interest course.

Seniors and the Lifelong Learning Plan

The cost of various student fees, class materials, and textbooks are generally not free. For seniors on a strict budget, or for those who are trying to keep their net income below the Old Age Security (OAS) clawback threshold ($73,756 for 2016), taking advantage of the Lifelong Learning Plan (LLP) could be a suitable option to pay for these supplemental education costs. Continue Reading…

Can’t retire? Semi-retirement is more fun anyway!

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Jon Chevreau on Peter Armstrong’s On the Money: CBC.ca

My recent blogs on Semi-Retirement seem to have struck a chord.  After I wrote this online piece for MoneySense.ca: Semi-Retirement is the Future (and a version here on the Hub, under the headline The Next Boomer Wave: Semi-Retirement), I was interviewed by Peter Armstrong at CBC TV’s On the Money Show.

The context of the CBC’s Tips for Boomers segment was in part my new book Victory Lap Retirement, written with Mike Drak, who describes it as a “retirement book about NOT retiring.” The first of several excerpts ran in the Financial Post on Monday.

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CBC’s Peter Armstrong (Twitter.com)

After the CBC segment aired, Peter published his own blog covering similar territory, which you can find under the headline You’re Never Going to Retire — and Here’s Why. He picked up on my statement that the Millennials are going to live a long time and therefore will have an 80-year investment time horizon. I mentioned that a few weeks ago, when I gave a talk to T.E. Wealth in Ottawa about financial advice for Millennials.

Long-lived Millennials need to be mostly in stocks

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How Collecting can keep you young

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Old postage stamps from various countries on wooden tableBy Cher Zevala 

Special to the Financial Independence Hub

For your entire adult life, you saved diligently for retirement, but if you want to make the most of your savings, you need to remain healthy for as long as possible. Being physically active will keep your body in good shape, but your mind also needs exercise as you age — which is why you should consider starting a collection.

Humans have a drive to collect things; it’s what helps our species survive and thrive in an unpredictable environment. However, now that you have the time, you can begin collecting items of interest that you can show off to friends and fellow collectors. Here are a few benefits to starting a collection so you can be happy and healthy for decades after you retire:

Reduce Stress

Stress is terrible for the mind and soul, but it does dreadful things to the body, too. Research shows that excess stress ages your body’s cells prematurely, causing all sorts of age-related diseases, such as Alzheimer’s and hearing and vision loss, before you might naturally develop them. Unquestionably, the less stress you have in your life, the better.

Research also shows that having hobbies can reduce stress as well as exercise, which is to say: quite a lot. Unless you feel like going for a run ― and few retirees can truthfully say they do ― you might start finding something to collect to cut down your stress.

Appreciate Beauty

There is beauty in the world, and with the right collections, you can prove it. Artwork, jewelry, books, and even droll items like stamps and coins can be evidence of the sublime. It doesn’t hurt to have pretty things around you, but you do have to locate and gather the things you find most precious and appealing.

Continue Learning

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