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Money News>
Community Resource Centre Money News
March 1, 2008
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Upcoming Workshop(s):
* Planning for Future Care Legal Workshop, Saturday, March
15, 2-4 by registration only at the Community Resource
Centre, Free. Call 604 885 4088 to register.
*March 18, 2008- from 6.30 to 8.30-Cash Flow Management.
Making the most of what you have. Guess speaker from The
Royal Bank- Mr. Tom Sinclair-Manager
Find out about Power of Attorney at the workshop.
Q: What is a power of attorney?
A: If something happens to you that leaves you unable to
make decisions for yourself, a power of attorney is a
written legal agreement that empowers someone else to do
things and make decisions on your behalf. So, if you're in
an accident and are severely incapacitated, the person you
grant power of attorney could make financial decisions for
you and make arrangements for your care.
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As part of our Money Management for Women project, more
financial workshops will be scheduled throughout the year.
* Please drop by to see our money management information
sheets and books that can be checked out. Book onto a FREE
one-to-one money management session and groups support as
part of our project.
Financial Resources:
* The Community Resource Centre has new financial
management books available for loan at the Community
Resource Centre. New Books include: Credit and Credit
Repair for Canadians. Information includes emergency
contacts for credit bureaus in Canada; Information about
paying back student loans; and how to order your credit
report.
* If you are interested in signing-up for one-to-one
financial information or participating in a support group
please call the Community Resource Centre at 604 885 4088.
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Quick Financial Tips:
Don't forget that it is Tax Time. 2007 personal income tax
filing deadline Apr 30, 2008
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Tackling debt as a family
Debt and money issues often take a toll on family life. The
debt repayment process can either alleviate or aggravate
interpersonal issues, depending on how you go about it.
"You marry and merge two lifestyles that could prioritize
spending very differently," says Christopher Viale,
president of Cambridge Credit Counseling Corp. "That can be
a real oil-water type of thing in the relationship."
However, encouraging family members to share feelings about
debt and working together to eliminate debt can be an
enriching experience -- both emotionally and financially.
"Families need to get together and be more open about it,"
Viale says. "It comes down to being very open and willing
to communicate what the lifestyle differences might be and
be willing to find a middle ground in that. It's all give
and take."
Set goals together
Everyone has a different tolerance for debt. Some people
are not comfortable with any debt while others can rack up
huge bills without giving it a second thought.
"One of the big things that we see couples arguing about is
how much should be spent, who should be making the
decisions, what is a need versus a want," says Michael
McAuliffe, president of Family Credit Counseling Service.
When you talk with family members about ways to eliminate
debt, try to avoid assigning blame. Instead, make it about
the goals.
"We all want to feel successful and do something that's
meaningful," Viale says. "That's why you have to create
goals, so you can achieve them and continue going about
carrying out your plans."
Set up a system
If you're having trouble getting your partner on board, add
fun twists and some positivity to help turn attitudes
around. You could use non-monetary incentives to encourage
savings. For example, tell your spouse that you'll agree to
take on a chore for a short period of time after they meet
a spending goal.
McAuliffe has his own approach.
"I came up with a checking account system called 'his, hers
and ours,' where a couple has three different accounts," he
says. "They have a joint account that paychecks get
deposited into and all fixed expenses come out of. Then
they each get an allowance for discretionary spending."
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Quick Financial Q & A
Q: My husband and I racked up, and nearly maxed out, three
credit cards(over the period of eight years)basically just
for living expenses, mainly groceries and basics to support
our baby. The interest rates on two of the three credit
cards are nearly totally half my husband's pay. I've stayed
home with our baby, so I'm not making money, but we can't
afford child care, which is really sucking the life out of
us. We've been struggling for so long, so we looked into
consolidating with one of three banks we deal with but
because we don't own a car or anything, we have no
collateral for the banks, and are turned down, but are told
our credit rating is as good as it gets. We know we've made
mistakes, but we really want to get out of the big hole
we're in and pay the biggest stuff off a.s.a.p., help!
A: First off, I think it's great that you're ready to fix
your finances. I know it seems like you're in a "big hole"
right now, but step one is to try and stay positive and
work with your husband to improve your situation and pay
off that debt. Trying to find a lower interest rate
consolidation loan or line of credit is a good start. Being
turned down can be pretty discouraging, but you've only
tried one bank – what about trying the other two that you
deal with? Persistence could pay off.
I also talked to Laurie Campbell, executive director,
Credit Counselling Canada in Toronto, to get some
additional ideas to help you out. She's dealt with a lot of
people in your situation and says it's important for you
and your spouse to sit down and talk openly about your
financial situation. "Make up a budget and look at where
exactly you are spending your money," she says. "Are there
any areas you can cut back?" she asks, noting that even
small things like asking your husband to bring his lunch to
work, finding a cheaper place to buy groceries and cutting
back on travel costs can help. "If you are unsure of any of
your expenses, try tracking them for a month and then
reviewing them," she says. That can help you cut out any
necessary expenses. While childcare is a huge cost for most
Canadian families, you can try to get help. Low-income
individuals are eligible for subsidies – are there any
where you live? Campbell also says there might be ways for
you and your husband to juggle schedules to offset costs –
working different hours if possible?
Finally, there are organizations out there that can help –
non-profit credit counselling services like Credit
Counselling Canada (http://www.creditcounsellingcanada.ca)
can
give you access to a credit counsellor that can look at
your situation and offer some suggestions for moving
forward.
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Life is good for retirees, RBC poll finds
Retirement means freedom from an alarm clock
TORONTO, November 20, 2007 — A majority of retirees (79 per
cent) believe that their quality of life improved in
retirement, according to the results of the RBC Retiring
Boomers Poll. And freedom from the daily grind of having to
use an alarm clock seems to be part of this improvement,
given that two in three retirees (66 per cent) say they
never use one.
"Not using an alarm clock doesn't mean retirees are slowing
down. In fact, our survey found that two in three Canadians
in the retirement window (67 per cent) are continuing to
live their lives at the same pace," said Lee Anne Davies,
head, Retirement Strategy, RBC.
However, boomers who have not yet retired are
underestimating what life will be like in retirement. While
more than half (56 per cent) of those approaching
retirement feel that their quality of life will get better,
this is more than 20 per cent below the actual experience
of retirees.
Boomers are clearly focused on their health and wellness.
According to the survey, the vast majority of those in the
retirement window (90 per cent) say that they are becoming
more aware of the need for wellness and personal care. As
well, two-thirds of retirees (67 per cent) say they spend
more time looking after themselves than they used to, with
pre-retirees lagging somewhat behind (59 per cent).
"We expect that retirees will be taking better care of
themselves and will be living longer as a result. Those who
are approaching retirement need to think through the
financial implications of this new reality," Davies added.
A positive outlook emerges as a common theme, with a
majority of retirees (57 per cent) and pre-retirees (55 per
cent), stating that they are optimistic about the future.
Both groups may be hoping that this positive attitude will
increase their longevity, given that they also
overwhelmingly agree that happy people live longer (94 per
cent). Despite some of the fears associated with
retirement, very few (about one in ten) of those in the
retirement window feel nervous or worried when they think
about their lives in the future.
"Good planning can help you make the most of your
retirement and minimize fears and anxiety," said Davies.
"It's unlikely that you will spend every day playing golf,
so you need to think about what will give your life meaning
once you retire, and our retirement life planning program
can help you with that."
The RBC Retiring Boomers Poll was conducted by Ipsos Reid
from August 3 to 8, 2007. The online survey was based on
responses from 2,037 adult Canadians between the ages of 50
and 69 with household assets of $100,000 or more. With a
sample of this size, the results are considered accurate to
within ±2.1 percentage points, 19 times out of 20, of what
they would have been had the entire adult Canadian
population been polled. The margin of error will be larger
within regions and for other sub-groupings of the survey
population.
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