Tuesday, October 31, 2006

What are we going to eat?

What about the phrase, “We married for better or worse, but not for lunch”?


Be grateful for inexpensive ethnic cuisine.



Other suggestions include teaching your better half how to cook, preparing double or triple a recipes and freezing, or buying more prepared foods. It is not the end of the world.



A lot of people, mostly women, are simply sick to death of cooking. They have been doing it for a dog's years. If you want to eat healthfully, remember simple is better. Skip the fancy sauces and fats at home, because if you eat out a lot managing your waistline is challenging.



Try two larger meals a day, if you do not like cooking. Or, five smaller portions of food that are healthy can work well. A large apple can fill you for a couple of hours, is healthy and non-fattening.



Keeping slim is a challenge in retirement. It has been said that more than fifty percent of boomers are overweight. Consider carefully how to eat.



Mahara Sinclaire

Wednesday, April 26, 2006

Retirement and Change

HI:

Spare change anybody? Just plain old change? I think some of the essence of the next stage of life for baby boomers is the process of change. Moving forward to a new lifestyle, new experiences can be exciting. It can also be scary.

Part of change is saying goodbye. That also can be bittersweet. Leaving a job can leave you footloose, free. You'll be happy to be free of the little routines that had become quite boring. But ..... you'll miss other parts, the people, the good times.

The thing about moving on is that reality smacks you right in the face. It can't be hide under busy-work, because there is no busy-work. What do you want to do? Now you can do it and it's looking straight at you.

We can't look forward and backward at the same time. The little period of time in between where we are and where we are going is a bit like being suspended in space. We are floating around but don't know where we will land.

But if you think about it, perhaps the idea of us knowing where we are going is also a fantasy. It was also unreality, but comfortable and known unreality, so we believed it.

Truly, though, life is quite random. We happen to be born and raised where we are, and given the opportunites accordingly to our generation and circumstances at the time. Strange circumstances or disaster could strike at any time, and as we age, we become more aware of our mortality.

Whether or not you believe in divine purpose, or random experience, we can only be in the now.

Mahara Sinclaire


Tuesday, April 25, 2006

Retirement - Travelling Light - Mentally and Physically

Hi:

Well, much has been made about travelling light. As boomers go around the world, being bogged down with too much luggage isn't wise. Packing very little, dark coloured knit or wrinkle-free fabrics and a minimum of supplies is the way to go.

I met a couple once who only had small and thin knapsacks for a month of train riding. She had one skirt, one pair of pants and layered tops. Makeup consisted on cream and lipstick. Shampoo can be had anywhere, as can little basics. No need to carry them around. He had about the same. With high-tech undies and socks, drying times are considerably reduced, so less are needed. They were both mobile, able to move and not be weighed down.

Of course a bigger trip requires a bit more, but the joys of carry-on luggage cannot be underestimated.

More to think about is travelling light mentally. The question I can ask myself is, how weighed down am I with emotional baggage? How free am I mentally? If I'm tied to negative reactions, past hurts and lost dreams, I can't appreciate the present, or the future.

The goal of many boomers is to fulfil their dreams, see the world, make a difference.

Our possessions in our homes won't make us happy, any more than things we buy along the way. What will make us happy is travelling light, being in the moment and moving every minute of it!

Mahara Sinclaire


Friday, April 21, 2006

Retirement and Recreational Property

Hi:

Well, recreational property is a hot interest area for baby boomers.

Many have paid for homes and are looking for another place to play - one where the pace of life is a bit slower.

People have always owned cabins and bits of land far away from civilization where they could park an old trailer or drive up to for a few days.

Not any more though, the simple rustic getaways.

One thing that has changed that is the price. Land values are amazingly high, with lakefront properties over the half-million mark the norm. Some choice areas such as the Gulf Islands, Whistler, and the Okanagan area have values of over one million. Homes usually reflect lot values to some degree. These homes are not rustic get-aways, but beautifully decorated prized possessions.

However, there are still plenty of small lakes and other properties, especially further north and in less accessible areas.

It also holds true that most people spend their time in their recreational properties in the summer months. Although the further north you go, the shorter the season, it can still be hot and enjoyable for much of the summer 'way up north. You'll just be leaving to come home earlier.

It will be interesting to watch the onslaught of the rest of Canada to the relatively mild climate of BC.

Fascinating also is to see how many people will flock to small-town Alberta. There people will enjoy the pleasant summer months and be snowbirds during the long winters. They will enjoy no PST, cheaper gas prices, inexpensive house prices, and even a yearly bonus from this resource rich province.

We do have choice.

More tomorrow.

Mahara Sinclaire

Wednesday, April 12, 2006

Retirement: How can it work if you don't have much money?

Hi:

Well, it's easy to speculate about all the wonderful things we can spend our money on - if money is no problem. It's a bit more challenging if, because of a variety of circumstances, money will be quite limited.

Unfortunately, this is the case for many women. The causes are many, much of it having to do with societal norms at the peak earning years for women.

Of course there have always been a few women who achieved professional careers. However,the vast majority of women were stuck in low paying clerical jobs thirty years ago. They did the work, others got the money.

Women eventually became smarter. However, if you combine those circumstances with child-bearing and child-rearing, it's not a pretty picture for some.

What to do now? My comments for the not-so-rich are - be resourceful, creative, open-minded, persistent, willing to make compromises, and try new things.

I'll talk about each of these characteristics and what they might bring tomorrow,

Mahara Sinclaire

Sunday, April 09, 2006

Women Retiring Differently

Hi:


A Vancouver Sun article March 28,2006 describes how women retire for lifestyle reasons.

Based on research done by Lynn McDonald of the University of Toronto, this Canadian study examines how baby-boomer women will change retirement forever.

With many baby-boomer women working for their entire adult lives, many now have options which in the past were unfathomable. The report describes women's retirement as "amorphous and fluid".

By "amorphous and fluid" it appears that women are choosing to retire when they want or need to based on personal or family needs. They may also retire and then at a later date go back into the work force.

The driving force behind this "fluid" retirement date is in part caused by their family life in general, and in particular their caregiving role. In the early years, women opted out of the work force to care for their children, and now they are doing the same for their aging parents.

There are positives and negatives to this of course, but the main message is that women now do have choice and are managing their lives according to their needs.

Mahara Sinclaire









Saturday, April 08, 2006

Small Communities Luring Retirees

Hi:

Many small towns across Canada and the US are stepping into the retirement stream and the current is swift.

Small quiet communities see the benefits of retired folks. They bring their money and often considerable assets into a community.

The newly retired buy new luxury homes or townhomes. With extra cash from their old home equity, boomers can finally buy all the little luxuries they have been waiting for. They can afford luxury and buy it. When else are they going to have their fantasy home? When they are 70 or 80? Oh no, these folks are going for it now.
Now is the time boomers are decorating to their heart's content.

Besides redecorating their home, people are pursuing leisure activities. Golf, walking, birdwatching, bicycling and boating are great ways to spend time and enjoy the good life.

Small communities who offer these amenities are bustling with action. The few good restaurants are busy every night, and the great establishments are catering to a grey-haired, plaid shirt set. Some communities are very actively laying out the red carpet and the welcome mat.

More tomorrow.

Mahara Sinclaire




Wednesday, March 29, 2006

Retire to the Sun

Hi:

Here is an example of how one family group made retirement to the sun possible.

The point I wish to make is how moving to a warm climate can be considered for a family, not just one person or couple.

Family and friends are a major focus, especially when work is no longer the reason to stay in one area.

One couple, a retired professional and his wife from Alberta bought a condo in the Caribbean. His brother and sister-in-law from BC then bought in the same complex and then their sister followed. She, however, lived in England. She is still working and so she furnished her apartment. The family managed it as a short term rental.

Next came their son and daughter-in-law, in their thirties, with two kids. They bought a two bedroom, but also rented it out on a long term basis. This younger family was not able to live in it for a number of years because they had young school-age kids. The family's parents were also able to manage that apartment. The couple with kids continued to live in Canada.

There were other children of the older generation as well with varying situations.

So now we have an extended family where the older generation moved and the younger generation followed. Christmas and family vacations are spent in the Caribbean. This family group has moved to a warm country.

As the mom said, "We live in shorts and teeshirts. We don't have anywhere close to the clothing expense of winter gear. Although food is expensive because it is an island, we don't have to pay huge heating and utility bills as we did in Canada. We are a short 40 minute boat trip to Florida and can shop in the malls. Life here is pleasant, relaxing, and much cheaper."

This couple said there were around 400 expats, mostly from Canada and the U.S. Of course it took a few months to get to know people, but now they have a great circle of friends and interesting activities.

Not a bad way to live.

M.





Tuesday, March 28, 2006

Retirement and Global Living

Hi:

Many people never think of the large factors that are changing our lives in so mnay ways. Yesterday, talking about real estate, the big factors that come to mind for me are globalization and demographics, as well as lesser social trends.

Globalization is the process of including global factors in your decision making. People are now looking internationally at opportunities that interest them. People all over the world are awakening to the fact that the world has exciting places to live other than where they were born. Further, citizens have the ability to buy property where they want. They want Vancouver, you want Costa del Sol.

Take Portugal, for example. On the Algarve coast massively large homes with ocean views have been built. For whom, you might ask? Well, the Germans apparently enjoy getting away from their cold winters. Facing Africa and the brilliant blue skies and water are pleasant ways to forget the cold days, warm the arthitic bones.

There are 60 million people in the U.K. over the age of 60. Where will they want to enjoy their time? For some, not in grey cold London. In spite of its charm, England gets left behind for Greece and Spain.

Closer to home, Americans are buying second homes in the Okanagan and Victoria. Canadians buy home in Florida and Arizona. Many retirees are moving to Central America. Panama, for example, is appealing because of its pensionado status.

We are a global village now, whether we like it or not.

M.







Monday, March 27, 2006

Retirement: Mining your Home for Money

Hi:

Well, mining the primary asset, that is the family home, is what many people plan to do when they retire. With real estate prices rising world-wide, many are gleefully rubbing their hands and calculating how much they can get out of their family home.

I talked to one person last week who listed their home last year for $800,000. There were no takers, so they pulled it off the market. They sold it in a week this March for $1.1 million. This couple made $300,000 by sitting in their home for a year!

New-found wealth of comfortable proportions inspires many fantasies, and in truth, some of these dreams can now come true. There are many, many people in this same position. Especially in hot urban areas, prices move quickly. My realtor told me one west-side house had twenty offers, and eventually accepted the highest bid - a cool one-quarter million over their asking price.

I think this is quite a unique bubble, and if possible, we should take advantage of opportunities. Of course the doom-and-gloomers predict prices will drop stratispherically.

Real-estate does have it's bell-curve, and cycles exist. However, what long-term residents must consider is globalization. People live everywhere, and we must move beyond our local-yokel conceptions of high prices and what's fair. What's fair is what the market can bear.

We forget that poor people live in Paris, London and San Francisco. How and where they live might be challenging for them, just as it is now challenging for the average young person to buy in Vancouver.

Yet Vancouver is full of young people. People can and do adapt. Before we take a stance it's wise to look at the big picture and the winds of change: demographics, globalization, technology, environmental and industrial shifts. More tomorrow.

M.


Thursday, March 23, 2006

Retirement Travel and Women

Hi:

Besides the adventure trips that some women like to take, there are also the shopping trips that others fancy.

There is something quite engaging about shopping in another country. Things are different. Sometimes it is in quite small ways, or other times the focus of the country comes to the fore.

I remember shopping in Spain. The stores were full of magnificent shawls. The variety of styles and qualities was dazzling. They were so beautiful that I had to buy a lovely red one with a six or eight inch fringe. Spain also had wonderful leather goods, magnificent purses and shoes. With a cosmopolitan city life in Spain, women dress elegantly there.

In Paris I bought scarves. Although I've always worn them quite a bit, the verve with which the Parisiennes wear them in engaging. It was just fun to do.

I like to buy small personal items such as cosmetics and toiletries. They are unusual, easy to carry around, and not expensive.

Power shoppers, however, go for their major purchases. Outlet stores even exist in Europe, usually outside the large cities such as Florence.

Organized tours to these shopping meccas usually focus on particular seasons, when the best buys are available. Some enjoy these marathon days of bargain hunting.

These shopping extravaganzas sound like a nightmare to me, but there are certainly those that enjoy it. I'd rather browse in small local shops. Cultural experiences are my joy.

M.




Wednesday, March 22, 2006

Retirement, Travel and Women

Hi:

More and more women are travelling alone. They are doing it for a variety of reasons.

One survey I read, from where I do not know, said that the average "adventure" traveller is not the stereotypical 20-something jock. Instead, the average is a 45 year old married women with two kids who works and wants a week away from it all.

These women go on the one-week guided adventure packages, often with their friends, but just as often alone. They know that if they are with a group of similar women, they will have made some friends during the week.

A Travel Industry Association survey said that women make 75% of all travel decisions. (Vancouver Sun article, March 2006)

Women, being the social creatures they are, want to travel with others, but often find it difficult to arrange their time-lines to coincide with their friends or family. This way they will have company.

Another bonus of organized travel is that they don't have to do the work. They just have to show up. What a relief this is for busy working professionals who are also running the family home and raising kids.

For the more strenuous adventure tour, safety of the sport, knowledge of the area and having trained guides become paramount. Having an expert along allows women to experience sports and challenge themselves in new ways.

More tomorrow.

M.

Monday, March 20, 2006

Retirement, Travelling, Hotel Rooms

Hi:

Further to my post yesterday, I select hotels when I'm travelling in the following fashion.

If I'm in travelling mode I look for a hotel that has a decent bed and is clean and safe. I do not need to spend a bunch of money on amenities I am not going to use.

We usually arrive later in the day, around four o'clock or so, check in, have a shower and maybe a nap, go out for dinner and go back to the room, relax, go to bed, get up and leave. Who needs the rest?

If we are planning to stay for a few days in the hotel, then I get a bit pickier. Then I want more atmosphere, a pool, perhaps a dining room and a larger room. If I need to relax, I want to do it in a nice place with good furniture and a view.

So, for example, when travelling in Portugal we stayed in various and sundry hotels along the way. When we went to the Algarve coast and stayed a few days we had a nicer place with a lovely breakfast and more room. Otherwise it was just basically in and out. Some places we stay less than twelve hours.

As my husband snores and I'm a chronically poor sleeper, I sometimes try to get a suite with a separate room so I can get a good nights' sleep. Otherwise the days go by and I function with less and less sleep.

Pretty simple plan but it works. Seasoned long-term travellers often travel three weeks of the month and plan for the fourth week in a much higher quality hotel with lots of amenities. They use these amenities to the fullest. Otherwise it's a waste of money to pay for what you are not using.

When we went on a safari in Africa, for example, we roughed it for quite a few days and then relaxed with the best of everything when we had the time to enjoy it.

Seems like a plan to me.

M.


Sunday, March 19, 2006

Travelling Close to the Ground

Hi:

Further to yesterday's post about being a tourist or a traveller, here are some thoughts about the phrase "travelling close to the ground."

The basic idea is that the closer you live with the people who live in the country, the more you will experience of that country. If you are staying in a five-star hotel you will be meeting others who stay there. These people might be business people, wealthy people, and other travellers.

You won't be meeting the average local citizen and talking to him or her.

The premise that money separates people couldn't be truer than in travel. That being said, the premise that if you stay in a five-star hotel you can't meet the mingle with the locals is also not logical. That is, unless you never leave your hotel room.

The point of happenstance, serendipitious experiences and unplanned encounters is perhaps the greater point of living close to the ground. The ongoing daily life of walking into a small coffee shop in Portugal is different than the $200 a day hotel dining room.

Experiencing traditional food, people at work, milling about the streets, shopping where the locals do and sharing a bit of fun with them is what makes travel so interesting.

That being said, great hotels provide a bit of a buffer against the onslaught of sensory overload that is India, for example. It provides quiet, good beds, cleanliness, and much needed rest. Safety is generally better.

It provides something very important to some people, and that is a sense of the familiar. It probably reflects Western culture, and some people love to interact with the country during the day and get back to where they are comfortable at night.

Elitism exists in travel also. Don't fall for it.

M.

Saturday, March 18, 2006

Retirement: Traveller or Tourist

Hi:

What are the semantics around being a traveller or a tourist?

Yesterday I mentioned round-the-world trips. Part of retirement travel is and having the time to experience a country and people in a more meaningful way.

Everything in context, I believe. You could zip 'round the world tasting the highlights of each country. Another goal checked off your list.

But hold it - that may be how we had to operate when we couldn't carve out more than a few weeks of time. Now we can contemplate depth, rather than just breadth.

A tourist does see the highlights of each country. That's very important and if you have a few days, well there it is.

I have known people who have gone on trips and never actually interacted with one individual from that country in a meaningful way. They have stayed in large western hotels and been shuttled from place to place. Interactions have been primarily with people in their group.

They have seen the places but not talked to the people. They have only had one-half of the experience. A country is made up of the people, the customs, their history and their monuments and buildings.

Difficult, of course, if you are in a country where you don't speak the language. Difficult if you are not travelling close to the ground as it were. How can we do this? If you have ideas, please write.

M.



Friday, March 17, 2006

Retirement Travel and Money

Hi:

One of the biggest ways you can save money when you travel is by judicious use of your time and airline costs.

The flight costs are often a major factor in a trip, especially if you are going to a country with lower costs than major western nations.

One of the great points of retirement is that now you can take much longer trips, and so make better use of your airline costs.

If you fly to a region and then take full advantage of your time to fully explore that part of the world, it becomes a wonderful adventure. You become a traveller, not a tourist.

Say you are considering Thailand. What about going to the other countries in the area at the same time? Places such as Malaysia, Myanmar, Vietnam, Korea, Bali, some safe parts of Indonesia would be fascinating to visit.

The intellectual process around this changes radically. Planning, reading, scheduling, packing - every activity take on different dimensions when you become a traveller, not a tourist.

This will be quite a trip - life changing, I would dare say, and life-expanding. The additional cost might be considerably less than you would expect. The issue of time is not such a pressing one at retirement.

But, perhaps most important of all, you are finally making your dreams a reality.

Perhaps the fear of how great a time you could have is holding you back. I often see reluctance when boldness is in order.

M.

Thursday, March 16, 2006

Retirement and Travel: Round the World Trips

Hi:

These trips can be very exciting!

The basic premise of an around-the-world ticket is that you buy a ticket from a large airline that is connected with other airlines. These airline alliances, as they are called, connect three or four large commercial airlines for major countries and several smaller country airlines. You may fly with the airline you purchased the ticket from, or with any of their airline alliance partners.

With this you can travel the world.

The tickets are not that much, and all have varied connections. The cost starts somewhere in the $3,500 to $5,000 range. This is for a several months to one-year ticket. You travel in one forward direction only. For example you must go around the world in an easterly or westerly direction. You cannot go back and forth.

Some groups allow you to also include ground transportion as part of your mode of travel. This means you do not have to leave from the same city you arrived in. If you arrived in London, for example, you might explore the rest of Europe and fly out of Rome.

More tomorrow

M.

Wednesday, March 15, 2006

Retirement and Middle and High Income Folks

Hi:

Well, as I mentioned yesterday, low income folks with little assets might not have too many problems in leaving Canada simply because there is not too much the government can take. They could certainly live a peaceful, simple life in a warmer but poorer country and enjoy themselves.

Travel is somewhat expensive so probably they would not do too much.

Middle and high-income folks have different scenarios, however. After the famous Bronfman case, when this family exited Canada with millions of dollars, the government started closing up the loopholes.

One thing is certain, in my opinion, and that is that you will have to pay the government some money. What needs to be weighed is the amount of money paid now versus the amount of financial freedom from future taxes you will receive.

People like Alex Doulis, who wrote Take your Money and Run, seem to have done it. I would recommend you read that book. Mr. Doulis lives on a boat somewhere in the Mediterranean. He doesn't say what country he lives in, or if indeed he does. Is his passport still Canadian. As I believe he is a Canadian citizen, he would be entitled to it.

Besides that, arranging your affairs does take some thought. Trusts can be set up. There are many lawyers and acountantants who advise on this.

One caveat. Do not be fooled by internet scams that offer secret bank accounts, high interest rates and fabulous bank guarantees. If the government cn't find it, maybe you won't be able to either.

More tomorrow.

M.

Tuesday, March 14, 2006

Retirement, Finances and Non-Residency

Hi :

Well, further to this thread of the last several days, money and weather still are the prime reasons people leave Canada.

On the money front, it can be relatively easy to leave without punative measures if you do not have much money, but have a stable pension.

The basic principle here is that you spend relatively high-value dollars in countries with a lower cost of living.

Mexico is a prime example. It is possible to live in some smaller communities for around $1,500 to $2,000 a month for a couple. This includes rented accommodation, some maid service and all other expenses.

This will not include a large home, as is common in Canada. However, it also doesn't include all the expenses of running that home. Challenges, especially in extreme winter conditions, such as heating bills, struggles against the weather, being bundled up for months at a time, and other related issues are gone.

The lifestyle is relaxed, casual, slower. You are only five hours away by plane from your home town. This may be important to consider.

If you and your partner only have the OAS and some CPP benefits, with few other financial assets, you won't pay much departure taxes on those assets.

The lifestyle can be great. Being out daily in the sun, socializing and pursuing creative or intellectual activities such as learning Spanish can be excellent for your mental health.

Departure Taxes? Deemed disposition of assets? What? More tomorrow.

M.

Monday, March 13, 2006

Moving from Canada after Retirement

Hi:

What else do you have to give up if you want to escape the cold Canadian winters and the high income tax rate? Well, there actually is quite a bit.

As I mentioned yesterday, to be a non-resident of Canada you must be a resident of somewhere else. If you are not a resident of Canada, why would you need the Canadian health system?

Not to fear. Contrary to opinion touted by some, we do not have the best health care system in the world. There are many, many countries with excellent care.

You must also give up your credit cards, club membership, video store memberships and driver's license. Of course this can be done over time, as you set up residency in your new country. But while you still have all those things you still are taxable on your world-wide income in Canada.

You may keep property in Canada, but it must be rented at arms-length. That means you can't put your son or daughter in and charge them nominal rent so you can come back at will. You must use an agent. It is also recommended that you stay out of Canada for at least two years. Arrange your holidays so your kids come and see you, or go to a U.S. border town and meet them there.

This seems like a terrible amount of bother. Why would anyone do it? Well, the answer lies in the tax system. More tomorrow.

M.

Sunday, March 12, 2006

Retirement, Expats, and Taxes

Hi:

So what's the deal if you decide you do like living somewhere else? What do you do?

Also, what happens tax-wise if you earn all this money off-shore in another country? Are you liable for tax in Canada if you have not earned money in Canada and been out of the country for the whole year?

The short answer to the second question is yes, unless you have structured your tax situation properly.

If you decide you want to move elsewhere in the world for a variety of reasons, you still have obligations to the tax department in Canada.

Here are a few pointers.

1. Canada taxes on residency, not citizenship. This is an enormous plus in my opinion. The U.S. for example, taxes on citizenship and U.S. citizens who earn over $80K must pay tax to the U.S. for life. I guess it's OK for the vast majority of US citizens who live elsewhere and don't make the $80,000, but Canadians often want to move from here for two reasons: the weather and the tax.

2. Say you have found your place in the sun. The cost of living is low, the community friendly, and you have started making friends, and getting established.
Your next step is finding out what that country's rules are on residency.

Some countries are quite open, while others do not want retirees. They are concerned, and perhaps rightly so, that as you age you will become a burden on their health system.

3. The point is, to be a non-resident of Canada, you must be a resident of another country. Otherwise you are taxed the same as a Canadian citizen living in this country.

4. The government will withhold 15% of your Canada Pension Plan and Old Age Security cheques, which is reasonable in my opinion. Other income may have withholding taxes.

5. The bottom line is that if you can live well in another country and don't have much retirement income, moving offshore can be a good deal. If you have considerable assets in Canada, you will have to pay departure taxes. In both cases you need professional advice.

More on this tomorrow.

M.

Saturday, March 11, 2006

Retirement and Expats

Hi:

Well, how do you do it - become an expat, that is.

After you have applied and been accepted, there will generally be some time before you actually start the job. This is where you have to get busy!

What are you going to do with your belongings? Of course this depends on how many you have and what your personal relationship status is, etc.

In the simpliest case, if you are single, and rent, it is relatively easy. You can organize a container and leave.

The moving companies now have wonderful systems in place. They basically load your stuff into a container and store the container. It is not unpacked and repacked. It is simply locked in a warehouse. When you return you get your container back.

I had the full contents of a two bedroom apartment stored for around $250.00 a month. I didn't think that was an exhorbitant price.

If you have a house or apartment to rent, you need to make decisions about where you will rent it furnished or unfurnished. It is also wise to get a property agent, to whom you will need to pay about 10% of your rental income. They can handle any issues. Specifically stipulate the handling of marijuana grow-op inspections.

If you want to do a short term contract to try it on for size, it might be just as wise to find a friend, family member or other contact and leave your house intact. However, you would need time off to come home and get it organized if you wanted to stay.

This all points in one direction. Now is a good time to get rid of things you won't or don't need.

If you are finally moving out of your profession, you definitely won't need all the related books, journals and information around it. Have your grown children take their stuff. Cull, sort, delete, hold garage sales. Keep the best and pitch the rest. Time to move on.

More tomorrow about government, taxes and non-residency

M.

Wednesday, March 08, 2006

Further thread on Retirement and Expatriates

Hi:

Well, although it may not be absolute retirement, educators do have choices about working around the world.

Lots of educators think about teaching elsewhere when they have reached their required number of years for a pension. This is especially possible in the K - to 12 system. Many in the old days started teaching at 22 years of age, making it possible to retire at 57 with a full pension.

Often people retire even sooner because they are tired of the "system". They want to take some time off, but after that are looking for a bit of adventure of a fashion.

Moving to a new country and teaching there fulfills that need for many. Money needs are not quite as great. They are doing something they are familiar with - that is teaching - but in a new environment. On one hand, it is stimulating to be challenged with new circumstances. On the other hand, it is not too hard, because they have lots of experience teaching, interacting with students, etc. etc.

Teaching overseas is certainly an interesting way to keep on working. It seems to be the best of both worlds.

More tomorrow.

M.

Tuesday, March 07, 2006

Other Links for Retirement Activities

EDUCATORS’ RETIREMENT AND OTHER WEBSITES
March 6, 2006
Mahara Sinclaire

FIRST LINKS TO WEBSITES. As promised, here are a few links to websites on a variety of topics. It took a bit longer than expected to come up to speed with the technology.

What I’ll do is include a few links now to get the ball rolling. More will follow.

I’m hoping that you will also provide links to interesting sites. You can just respond to this email and they will be sent to everyone.

You can also forward this email to as many people as you wish. They will need to enter their email address to get on this newsletter.

****************************************************************

One I mentioned is Canadian Executive Service Organization (CESO) http://www.ceso-saco.com

In operation since 1967, they have 3,000 volunteers. They work primarily in America, Africa and Eastern Europe – formerly Soviet Bloc countries. The focus of their work is with peoples of developing nations. They also work with First Nations groups.



Another group is Actions Without Borders http://www.idealist.org. They boast links to 22,000 non-profit and community organizations. I checked out their International Fellowships – looked pretty interesting.


One site for teaching esl is http://www.eslteachers.ca. I haven’t used it, of course, but it is Canadian and has jobs in Asia, Turkey and Russia. There is more to be checked out here as far as reasonable working conditions, salaries, etc.

That’s all for now. Happy exploring.


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Monday, March 06, 2006

Retirement and Expats

Hi:

Further to this thread of the last few days, the most exciting aspect of an expat life is, in my opinion, the social interaction.

When you become an expat, you move into a new community. This will be the new country you live in. The experiences of meeting new people in that community, doing business with them, being exposed to a culture different than your own can be very enriching. You observe the universal similarities and the tiny quirks that make a people and culture unique.

In the larger expat community you also start to observe cultural differences. This is not with the people from your host country, however, but with the folks who are also expats. To use the slang, you see how the Brits, the Aussies, the Yanks, and the Canucks act under the same circumstances.

Besides learning about the place you are in, you learn about the places your new friends are from. You start to compare all sorts of things. Every topic is interesting, from the government policies, the education system, the social system.

The natural extension of this is a broadening of perspective and a greater tolerance. It is not a paucity, but an enrichment of interaction, stimulating discussion and learning.

More tomorrow.

M.

Sunday, March 05, 2006

Why become an expat?

Hi:

Why would anyone become an expat? I don't think it is what people start out looking for, but something that people fall into as a lifestyle.

For example, I know of several people who went to work in Dubai, as post-secondary educators.

The money was not great but OK, say around $60,000 a year. However, considering that this was tax-free income, the money offered seems much more attractive that the same amount here.

Of course people had to structure their tax situation properly to get it tax free.

Besides that, these individuals received a $10,000 furniture allowance, paid-for accommodation, a round-trip air ticket back home once a year, and the usual two months' holiday. At this point things did look considerably better.

Expenses consist of food and personal items. They could bank say, $50,000 per year, or $100,000 per year as a couple. Suddenly it becomes possible to save half a million dollars in five years.

Besides that, the close proximiity of the middle east makes foreign travel in that part of the world more accessible. People spend part of their holidays in exotic places and take short weekend jaunts to Paris or Barcelona.

It adds up to a stimulating and challenging lifestyle.

All this being said, the dangers of the middle east were not what they are now.

Would I do it today? Good question. The point of this example is that there are opportunities, with short windows, for those that are brave.

More tomorrow.

M.

Saturday, March 04, 2006

More on the Expat Life

Hi:

Two expat websites are www.expatriates.com and www.geocities.com/canadians_abroad.

These sites are like any others, changing, developing, sometimes well used, sometimes not. There are links to many countries. Some countries have lots of posts and information, others not, of course depending on the participants.

The first site is for the world, while the second focuses on Canadians living abroad. There are dozens of other sites - just google expatriates.

There, I've used a what was a noun "google" as a verb, "to google". Our ever evolving language!

M.

Friday, March 03, 2006

What is an expatriate?

Hi:


Have you ever heard of the word? Many haven't, but more and more people are becoming aware of the expatriate lifestyle.

Those are people who travel a great deal or have worked internationally. They have linked up with other transplanted people in their current city or country.

These "expats" usually hang out together, socialize, compare housing prices and all sorts of information that is needed to navigate a new country or city. They often become good friends by virtue of the fact they can speak the same language.

Expats often take small jaunts together, going off on extended weekends to visit neighboring countries or recreation areas such as the beaches and lakes of the countries where they live.

Expat communities can be quite large. I understand there are 6,000 expats in San Miguel de Allende in Mexico.

Some larger expat groups have social events and organized activities. There are art and symphony groups, writing, sports and parties and special events.

If you are thinking of moving internationally, be sure to find out the size of the expat community in the place you are going.

More tomorrow, including some websites.


M.

Thursday, March 02, 2006

Planning for Leisure Time in Retirement

In the past retirement was for the elderly, as life expectancy was lower. "Older" folks stepped aside for the "younger" ones, and gradually disappeared from the scene.

Well, the old days are over! Today baby boomers are totally involved, doing interesting new things, traveling, redecorating, socializing, going wild.

Really, when you think of it, retirement at a young age has all the hallmarks of a great life. You have enough money to live reasonably well. This is, of course, subjective, but let's not be too picky about how North Americans live. Reasonably well is probably an apt description.

You are relatively healthy, and if suffering a bit from lifestyle issues such as smoking or obesity, these can be changed.

You have opportunities to give back in amazing ways.

Travel has never been easier or more interesting.

So we can truly do as we wish, and without the major factor that has governed so much of our life up to now, that is, work and our time commitments to it.

What more can we ask for? The ability to step out of our comfort zone, take the challenge and go for what we want. Vision and action are all we need.

Wednesday, March 01, 2006

Variety of Small Places to Live

Hi:

Although many people still want a large family home when they retire, there are other options to consider.

What do you want to do? If you want to travel a great deal, why not get a smaller place that you can lock up and go. Or, why not have two smaller homes, or a time-share you can trade. People with several time shares go all over the world. It's best to be with a large time share company if that is your aim.

What about a home in another country? The cost of living can be considerably cheaper elsewhere. Your can live here and there for several months of the year and choose your best weather options.

Dozens of permutations exist, limited only by our imagination. You can even be homeless for a while if you are travelling for extensive periods. Could you stand it psychologically?

The point is to expand our options and get out of ruts. If you are not doing what you want, be creative and make it happen.

M.

Monday, February 27, 2006

Ah, the weather! Retire to the Sun

Hi:

Well, here it is the end of February. In Vancouver a pink haze surrounds some trees, an early promise of blossoms to come. The tulips are half up in the back yard, and daffodil stalks are standing tall.

Spring seems a long time coming. We had a long spell of rain, 29 of 31 days in January and the last two weeks of December. I think I'm growing moss.

The last few days have been very cold and windy. Fireplace logs going, heavy clothes.

Did you know there is an ideal climate? It's somewhere around 20 degrees centagrade, with relatively small changes in barometric pressure. That's the change in air pressure that gives some people headaches or sore bones.

I think the rest of Canada is going to land on our doorsteps with a large thump as they retire. When you see the news clips of the snow elsewhere, it does give one pause.

It has been said that the Canadian psyche has been formed by the weather. We persevere, carry on and make it through.

With less tolerance for cold as we age, those of us already living in warmer southern BC might be on a fast plane to more southern Mexico.

My goal is to spend January somewhere warm - Spain would do.

M.

Controlling Spending

Hi:

One way to control spending is to double the price of things in your head.

Think about it. If you are in a high tax bracket, what earnings are needed, before taxes, to buy that item you desire? Many of us are in a 40% tax bracket. Add that and the 14% GST and PST to determine its true worth.

That $20.00 impulse buy becomes $40.00. Is it worth it? Wait a day and see if you still desire it. Don't go shopping as much. Shopping is not a recreational sport.

If the goal is to retire and do meaningful things, don't fall prey to buying things that don't have a part of reaching that goal. How much stuff do we need?

Have a little voice that whispers in your ear "garage sale material, garage sale material". That's where many things end up five years later.

Focus means cutting out extraneous stuff to get to your goal. Possessions are a huge part of North American society. However, we are not our stuff.

M.

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Sunday, February 26, 2006

Is your identity tied up in your job?

Hi:

What will you be when you retire?

How will it feel to be introduced as your name only, and not with the identity of what you currently do?

This certainly is an interesting idea to contemplate.

There are theories around this. One theory is that those who truly enjoy their profession will feel some loss if they are simply known as a retired person.

The opposite of this is those who hated their jobs or professions will want to get as far away from it as possible and don't want to be known for what they used to do.

Of course, there are always those in the middle, or somewhere along the continum.

One suggestion is that those who truly love their work continue doing it in retirement. They could work part-time, volunteer, or even work in a slightly different way.

Those who are happy to see the backside of their company or profession might contemplate a complete change of pace or activities.

Ask yourself, "Who am I?". Answer without using your work skills. Interesting.

M.


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Saturday, February 25, 2006

Money Styles and Goal Setting

Further to yesterday's posting, it's a good idea to figure out your goals in retirement in relation to your money style.

Both spenders and savers might have great retirement plans, but need to be realistic about achieving them. If truth be told, however, money and personal self awareness and growth are an intermingled challenge. This bears greater consideration that it often gets.

We've probably all seen the bumper sticker on R.V.'s - "I'm spending my grandkids' inheritance." It is one perspective. The general line of thought is as follows.

We've worked hard for all we have. Nobody handed it to us on a silver platter. Why should we hand it to our kids and grandkids? They should work for their money, just as we did. It's a pragmatic way to look at life. Is it wise?

For folks who have no kids the idea of spending everything you've got before you die has currency. But so has thoughts of doing good works, and leaving money to other family relatives and good causes.


Too often people scrimp and save and find it hard to get out of the perspective that life is hard. Why not enjoy some of your money? It is interesting to look at psychological concepts of deserving and permission with respect to money as well.

More on this tomorrow.

M.

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Friday, February 24, 2006

Money Styles - Spender or Saver

Hi:

When we think about how we gather our assets to retire, it's interesting to consider spending styles.

Many theories about psychological money styles ask interesting questions.

One simple exercise is to determine if you are psychologically prone to spend or to save. If those two styles were placed at either end of a long line, where would you sit?

The answer will have impacts on your money available for retirement and also in your ability to enjoy that money.

It is also very interesting to figure out your partner's style. If you have diametrically opposite styles, you may have had a troubled money relationship. That is, unless you have so much mondy you don't have to worry about it. If only!

M.

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Thursday, February 23, 2006

Take some time off!

Hi:

It's important to remember we all have peak periods of production and times when we can't be as productive.

If you've been working hard for a while, you might need a mental break. Even a few days of doing nothing can work wonders.

I need to keep reminding myself that I am not lazy. When my creativity wanes and everything becomes an effort, I know it's time to stop. I start doing less important and more physical activities, such as shopping or catch-up on housework.

I find that I need to gear down in stages if I've been extremely busy. Sometimes when I'm quite involved I don't even sleep well. Even when I have a day off I can't sleep in. At that point I'm a bit too revved up to do that.

What I do instead is less important things that require little brain-power. I gear down gradually. I let my body take over, have naps in the afternoon and have a slow day. Then I find I sleep very well and wake up refreshed and ready to go at it again.

Being aware of our personal bio-rhythms is smart. Those who ignore them do so at their peril, especially as we are not as young as we once were.

We need to have fun along the way.

M.

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Wednesday, February 22, 2006

Structured or Unstructured Time

Hi:

Further to yesterday's post, another personality factor to consider is how you operate in the world. Do you like to have plans, set goals and have some structure to your day and week? Do you have to have larger plans set out and know generally what you are focusing on for the next several months?

Or, is your idea of heaven an open day, week, or month? Are you so sick of schedules that you will delight in endless days of complete abandonment of time restrictions?

Probably most would like a mixture of both extremes. But this is important to consider in retirement. You will not have the structure of work and responsibilites and have years of open time. What will you do? More importantly, have you thought about how you like to do things, and planned for it. Further, how does your partner, spouse, or others that you will spend your time with live?

M.


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Tuesday, February 21, 2006

Personality and Retiring

Hi:

The Myers-Briggs Type Indicator reveals several personality factors. Two that I consider important in retirement are the Introverting/Extraverting and the Judging/Perceiving factors.

The first one - introversion and extraversion are extermely important.

If you gather your energy from others and need to focus your energy outward, you are considered an extravert.

If you prefer time alone and gather energy from reflection and time alone, you are probably an introvert. Of course, we all express qualities from both sides of the spectrum, but the tendency will still be with one way or the other.

Extraverts cut loose from their jobs with no opportunity to interact and express themselves in meaningful ways may find retirement very lonely. Their needs must be met by establishing opportunities to interact on a regular basis, in ways that are important to them.

Introverts enjoy more solitary time and may be thrilled to be able to spend days persuing their interests. However, no person is an island, and introverts may find they become too isolated and narrow in their focus.

Something to think about.

M.

Monday, February 20, 2006

Use your imagination with your assets and income.

One way to look at your current situation is to bring things down to two points. The first is your assets and the second your income.

Cull everything down to two numbers and start to play with them. Will it be a small apartment and a boat, a large house in the country, no home but lots of travel - what?

It's fun to imagine.

M.

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More things to buy just before retiring

Hi:

Besides a new vehicle and as large a line of credit as possible, what else might be wise to put in place before retirement?

Well, you might look at your appliances in a new light. Are you planning to move in the next couple of years or stay put for a while? This is a good question to ask in looking at replacement costs.

If you are planning on being in your current home for the long run, calculate the life left in your appliances. These can certainly be expensive to buy, especially if you are not bringing in extra income. You might consider replacing these now, before retirement

There are benefits to purchasing new. Newer appliances are much more energy efficient. For example, the newer style front-load washers use less water and are easier on the clothes.

An newer fridge might only use $50.00 of energy per year, while the second one down in the basement may be gobbling up energy. Newer fridges are also designed better, with the freezer on the bottom and easy access to food at eye level, which is more convenient.

Other things that might need replacement are lawn equipment, expensive sports equipment such as ski or golf gear, and expensive outdoor clothing. Fancy waterproof coats can be in the hundreds of dollars, and ski clothing price-tags are shockers.

Get it all while you have the bucks, because it might be more challenging later.

Talk soon.

M.


Sunday, February 19, 2006

Get Line of Credit established before you retire

Hi:
Another good idea is to get a line of credit for as much money as possible before you stop working. This way you have access to funds if you need some.

Many people get a line of credit tied to their home. With or without a mortgage, funds are available at very low rates when they need them.

For example, if you have a paid-for home, you can get a line of credit for, say, $50,000. Then, if you decide to buy a car you can write a cheque and use that money at very low rates. You don't have to fiddle arrranging money at that time, and better still, if you are not working, it is hassle free.

The same applies with a mortgage. Naturally the rules of mortgage proportions apply. That is, you can't borrow more than the percentage of your debt-to-equity proportion than your bank or credit union allows.

This is a good idea if you need to make major repairs or renovations to your home that will increase the value much more than the capital spent. It can also increase your enjoyment of the home.

This is assuming, of course, responsible behaviour and commitment to be debt free.

It will cost you an appraisal and legal fees in the order of approximately $500 to do this. However, some banks have specials where they waive these fees if a certain amount is set up.

Remember, you don't have to use it, but it's there if you need it.

M.

Saturday, February 18, 2006

Buy Car Once More Before You Retire

Hi:

Here is one idea to think about four or five years before you retire. What possessions do you have that you will need to replace? Will you have the money to do so after you retire? This should be planned out a few years in advance.

For example, start thinking about your vehicles. How often do you buy one and how much does it cost? Should you buy a car now, well before retirement, and then another one just before you retire? If, for example, you buy a car three years before you retire, will you need to replace it within a couple of years of retirement? Will you have the money?

Do you need two cars? If you are planning to do a lot of travelling right after retirement, can you hold on to the old clunker until you retire? You can then travel, do without and then buy the new car.

If you plan to downsize and move closer in to an urban area, will you still need two cars?

If you both plan spend much time daily each doing your own activities, and you live in the suburbs, two cars are an absolute necessity. However, if you plan to spend most of your time together, or not be too scheduled, one will do.

Lots to think about.

M.

Wednesday, February 15, 2006

Yet more Information on ESL

Hi:

Another point regarding ESL is that the ideal posting is one in a country where there is a low cost of living and where you get paid in higher currency dollars.

To do this you need to be looking at private schools, colleges, or other institutions where there are many international students, or where the institution is run by an organization outside of that country.

Some Canadian colleges are organizing and running programs in China. They are paying the going rate for Canadian instructors. If the cost of living is low, Canadians can get ahead. If it's the other-way-round, be careful.

For example, I knew some instructors who were teaching in South America a few years ago. The Canadian dollar at that time was very low and all their costs in Chile were in U.S. dollars. Although a wonderful experience, it was not financially advantageous for them to work there.

Another example is the United Arab Emerates. The college paid around $60k tax-free, provided a free apartment and $10k worth of furnishings and paid free return air to the home country once a year. Instructors there basically only had to pay for their food and miscellaneous expenses. It was also quite feasible to explore the surrounding areas. There is more to this because of Canadian income tax regulations, but I think you get the idea. Something to think about.

M.

Tuesday, February 14, 2006

More on Teaching ESL

Hi:

One consideration about teaching ESL is the country whre you are teaching. There are a few hints that might make your experience more satisfying.

As an example, I spent a wonderful evening with three young teachers in the little town of Cahuita, Costa Rica. It's a pretty primitive town, and as we sat under the thatched roof of the open-walled restaurant, they shared their experiences. We heard interesting chirping sounds all round us as we enjoyed our rice, fish and beans.

These kids were young, just-graduated from university, and eager. They were having the time of their lives, getting teaching experience, living out on their own and enjoying the fantastic beauty of Costa Rica. But in fact their experiences were of living in small villages with poor families. They had little privacy, meager, boring meals and little intellectual stimulation. Their pay was poor.

As I listened to their tales, I realized I would not like to be there. It was a great opportunity for them, but not for someone experienced and needing more.

I know of others who end up all over the world in small towns, living a plain, almost subsistance living difficult conditions. I think it's a great way to start, but not to finish.

However, if I was to consider teaching ESL, I would want to go to a city with cultural significance. I would want to spend all my spare time looking the architecture, visiting the galleries and soaking up the atmosphere. I would also want to have my own place where I could write and attend to all the other things in my life that matter to me.

Another point of teaching in remote places is the opportunity, or lack of it, to travel. A friend of mine teaching in Greece used her weekend and holidays to see all of Europe. She used her area as a springboard for extensive exploration. That would be more satisfying to me.

By the way, the lovely chirping sounds I heard as we ate - rats. It did spoil my mood.


M.

Monday, February 13, 2006

Teaching ESL

HI:

Many people consider teaching ESL as a way to stay in a country and truly intereact with the people of that country.

Not surprising, there are a wide variety of qualifications required.

The one obvious thing is if you do speak English, you can teach it to others. You know the topic.

On the other hand, thinking about how to present it logically, teaching grammar and pronunciation, and organizing yourself on a daily basis might be more challenging.

This also will affect your rate of pay. But your rate of pay is also dependent on your confidence, experience, presentation skills, and negotiation skills. This is generally why more mature people receive more money than less experienced people.

I'll give some specific websites tomorrow.

M.

Sunday, February 12, 2006

Looking for International Jobs

Hi:

If you are looking to work internationally, there has never been a better time. With globalization and technology, work possibilities now are accessible to a huge portion of the population.

The web, of course, has made this possible. There are dozens of sites and ways to research.

One good way to look if you are unsure, is to go back to a comfortable way to source things, and that is, a book. The Directory of Websites for International Jobs, by Rona and Caryl Krannich, sets you up well. It is divided by country and goes through a step-by-step process.

My copy is 2002, so of course it is hopelessly out of date. However, it's the same game, different name scenario. The process is there, but you will just have to search differently or get new links.

Monster, for example, can be keyed in with the name of the country after the .com, as in .com.au for Australia, and .com.es for Spain. It will give links for that country.

This is a time-stealing process, but what better do you have to do on Sunday night but surf!

M.

Saturday, February 11, 2006

What One Million Will Buy

Hi:

How much will you need to retire? Let's throw out a couple of figures that seem to be natural targets.

One to Two Million: one to two million will include dining out and modest travel. At five percent interest per year, one million would yield $50,000 before tax. If you add in various pensions and have paid-for accommodation, and that income is split, there would be little tax. Of course you could play with the numbers and go up and down the scale, but interest rates are not that high at this point, and taxable at 50%.

Still, it costs around $10,000 to run a house for a year, and a trip could easily come in around $10,000. When you start looking at cars and insurance, dining out, entertainment, presents for your kids and grandkids, it's not much. Additional pensions will take your tax rate up as well.

It's easy to see that one million doesn't generate that much money. Dipping into capital would reduce your potential to earn money on that capital. This is why many people at the beginning stages of retirement still work a bit here and there to keep the cash flow flowing.

More tomorrow.

M.

Friday, February 10, 2006

How Much Do you Need to Retire?

Hi:

Well, last week's National Post had a large feature on "The Number". This is the title of a new book by Lee Eisenberg. The article starts, "what price freedom?".

It goes from there and describes how different types of people pick a number that they believe would satisfy their needs in this world. He describes the four different types of people as: the procrastinator, the plucker, the plotter, and the prober.

If we had that magic number in assets, however which way we arrived at it, we would, as the article says, say Sayonara, Au Revoir, So Long, Tootle-oo, See ya later, Ciao, I'm outta here, Adios, I quit and Bye Bye.

This number is interesting to contemplate in Canadian terms. Ten million of us in Canada are gleefully looking at that day when we won't need to get up in the morning. We will change the way this country operates, much of the same way we did in the last half-century. Such is the power of demographics. As we went through our decades of life, society changed. More tomorrow.


M.

Thursday, February 09, 2006

Planning on Using Home Equity to Fund Retirement?

Hi:

Well, with real estate prices up world-wide, those people who own real estate are feeling pretty good. Depending on where you live in this world, considerable appreciation now gives you more options upon retirement.

If you are planning on staying in the same market area, the discussion on garnering appreciation can be somewhat academic. To trade one house for another won't make much difference, unless you either move much further out or downsize appreciably. Even downsizing to a modern urban highrise might yield less space, but the costs of that convenient and trendy location might be comparable or more than your current house.

Think that real estate in Canada's two major centres of Vancouver and Toronto are out-of-sight? Get on the web and check other major world cities. Paris has apartments at $1,500 per square foot, and homes in Spain, Portugal the U.K. and are up there in the stratosphere also.

The fact, parts of Vancouver are now internationally priced. If people have a few well-placed homes around the globe, Vancouver might be where they spend a few months a year. We have been ranked time and again as one of the best cities to live in, although the weather over the last month gives me pause.

Not to despair though. Most of B.C. is reasonably priced.

My main concern is the several million baby boomers living in Saskatchewan, Manitoba, Ontario and Quebec who want to escape their winters. Watch out for the avalanche!

M.

Wednesday, February 08, 2006

Retirement and Taxes

Hi:

While I'm on the topic of Retirement Savings Plans and taxes, there certainly are many things to think about.

It does give me pause when I think of the taxes I pay every year and what our wonderful government does with the money. I know many others who think the same way.

One of the problems is the cost of living here. My gas bill for one month was $450.00! By the time we pay for the various insurances, taxes, and utilities we have little left of our monthly income.

Another issue is employment insurance. Did you know, for instance, that if you work after the age of 65 you must pay into employment insurance but are unable to collect it if you are laid off? This is just another form of straight taxation dressed up as a benefit. Who has the energy to challenge these rules? This is discriminatory.

As we become older and a bit wiser we do have opportunities to look around and see how others have managed their life. They are not working as hard and are enjoying life more.

Looking at the big financial picture certainly is important. Our life energy is limited and the government's ability to tax is voracious.

M.

Tuesday, February 07, 2006

RSP Contributions - Look at the Big Picture

Hi:

I'm not the biggest fan of RSP's. Much of it has to do with our tax situation.

When you take money out when you retire, you pay tax at your marginal tax rate - obviously. But there are few tax deductions you can claim as you get older.

If you have pensions or work a bit it's not hard to go over the $53,000 or so clawback limit. At that point you are working for the government.

Although it seems like a savings on the front end, sometimes a better way to go is to put your money in your house and pay down the mortgage.

As our principal home is tax free, the faster that is paid down the richer you are.

If you sell your paid-for home for $500,000, it's your $500,000 to do with as you wish.

If you sell out some of your RSP's and let's say you sold $500,000, you would pay tax on that at current tax rates, which are in the 40% range. That is, $200,000 to the government!

Not a hard choice when you look at it that way. The trouble is, we are bombarded by RSP ads at this time of year, and not bombarded by ads telling us to pay off our mortgage. Every financial institution has their vested interests, and it's up to us to take care of our financial interests.

M.

Monday, February 06, 2006

Cheap Fares to Europe for Two Pounds

HI:


Well, after 29 days of rain in January, and a record amount of rainfall I was happy to see the sun for a short while. Then the winds hit last weekend - there were lots of power outages. The cold seems to go down to my bones.

If you are thinking of getting away, as I know many of us are, lookat ryanair.com. They have incredible fares.

Right now they have specials under two pounds. Some are free or five pence, whatever that comes to.

The taxes come to more, but I just got a quote of two people from London to Barcelona and back for 105 pounds, including taxes. I think that's about $225 Canadian.

Flights to London are often on special. London is one of the hub cities of the world, and one key to cheap travel is to check flights from there to where you want to go, not from your city.

Another hub is Miami. So, if you want to go to Panama from here, for example, it can be quite expensive.

But if you check prices from Miami to Panama there are savings to be had. And Miami is another city that often is featured by airlines for special deals.

Something to think about, especially in this weather.

M.

Sunday, February 05, 2006

More about emotions around retirement

Hi

One of the best things to do with your emotions if to define them. This is true of most things, and also important with this issue. If you walk around feeling vaguely uneasy, or unhappy, and you have not defined why, it lurks in the bad corners of your mind. It's always there, under the surface, and distracts to various degrees.

Once you have defined what's bugging you, you can then do something about it. Of course we are talking about the more unhappy emotions. The first thing is to assess what areas are deficient. Then, when you see what the issue is, you can start to think about solutions.

It has been said that defining the problem is half-way to solving it. If you do not have any interests outside of work, you can start to look around. If you don't have enough money, you begin to think of how to make more, or about a part-time job you could take once you retired.

If your relationship is shaky, maybe now is the time to start discussing it with your spouse, not when you retire.

You get the point. As you move from problem to solution, all sorts of ideas open up.
Problems are the past and solutions are the future. Your energy will grow and inspiration will move once you go in different directions.

There is one quote I love, and it is, "One hour of action is worth ten hours of navel-gazing." I don't know who said it, but it's true.

Who cares who wronged you or what other people think? Is it worth holding on to past grudges? You are the one who is suffering from a negative state of mind. Why let the past impact the future?

This is your life and the more you get out and get going the happier you will be.


Go for it.

M.

Saturday, February 04, 2006

Yet more emotions

Well, besides feeling fortunate, resentful, and eagerly anticipating retirement for both positive and negative reasons, what else is there?

Some more I've observed are: uninformed, challenged, hesitant, worried, frustrated, depressed and annoyed. These might be classified as "negative" but are a natural progression of not planning, or not liking the circumstances in which people find themselves.

Positive feelings and attitudes some show are feeling fortunate, relaxed, prepared, relieved, excited, happy, useful, in control, motivated and proud.

The difference? I believe it might have a great deal to do with the locus of control. If you feel your future life is out of your control, a great unknown with scary consequences, it might be the time to take control of as many areas as you can.

Of course, no one can know the future. We may be hit by a car today, but that's a pretty uninformed way to view life.

Better to take action in the areas you can. The most important of those is a positive mental attitude. Take stock of all your mental, physical and emotional assets and know you have to power to proceed positively.

More tomorrow.

M.

Friday, February 03, 2006

Emotions Around Retirement cont'd.

Hi:

Other emotional states around retirement are interesting to explore. Here are a couple more to consider.

Fortunate - these folks seem to recognize all the riches they have, both financial and emotional. The balance of riches may not be skewed towards money. If they have a comfortable lifestyle now and can afford to keep it, and have meaningful activities and deep relationships, well, that's pretty good in their minds. In fact, very good.

I've known people who work in large unionized environments who are forced to quit at 65. The emotion I've seen then is resentment. They don't want to leave their particular workplace. They are mentally involved, energetic, want to work, and like to work. To be told "you must leave", because of an arbitrarily set date is not great.

This has been challenged in court, and in many cases, upheld by the courts. A B.C. schoolteacher went to bat over forced retirement and lost. The whole process took until she was 76 years of age. Who knows if she wanted to retire then.

Of course, people can go out and get other jobs after sixty five. But if they have a long history with the company and are involved in projects and the ongoing operations, this may not satisfy.

What to do, what to do? More......



M.

Thursday, February 02, 2006

Emotions Around Retirement

Hi:

How do you feel about retiring? It seems that this question evokes a wide array of emotions.

Some people can hardly wait! They are looking forward to the days ahead with anticipation. Actively planning their next stage, they surf the web, borrow dvd's of exotic places to visit and talk about it - a lot.

I've met some who say they have three years, four months, seven days, and then look at their watch and tell me the hours and minutes until they retire. That seems a bit macabre to me. Is it anticipation or putting in time in a job they hate? I think it's the latter and I somehow think they might be disappointed in retirement.

More on this tomorrow.

M.

Wednesday, February 01, 2006

Retire Early and Find another Job of your Choosing

Hi:


Many years ago, when I was much younger, around 40, I taught a job search workshop for people over 45 years of age.

We focused on the positive points of being an experienced individual and also looked at some of the stereotypes people have of “older workers”.

Looking at some strategies to overcome employer bias, we discussed our strengths, and how to educate employer to see past this bias.

In fact some studies, which I don’t have at my fingertips, find that older workers are very reliable. Their work experience has developed their communication, decision making, project management and time management skills. They usually don’t have childcare problems.

What I did find interesting, though, as it was alien to me, is that some older workers wanted to step down from top leadership roles. They wanted to work, but not necessarily be the boss. They might have a great deal to contribute, but like to see others step up to the plate.

I can see and understand it now though.

This shift of direction is quite a natural progression of the life-cycle process. In our fifties we are at a wonderful time in our lives. We are healthy, but now have different needs. Our perspective is broader, more inclusive and all encompassing and we can see other areas of interest.

This doesn’t mean we won’t do a good job or be bored. It fact we may do a better job because we are not in active parenting or facing the financial stresses of earlier years.

By the way, I think employer bias is melting quickly in this busy market. Workers in their fifties are energetic, committed and so very capable that they often have the edge.

M.

Tuesday, January 31, 2006

Retired and Single, but not by choice

Many of us will be single as we age.

There are lots of reasons. Demographics show that it is primarily women who are reaching their late 80’s and 90’s. Another point is that life expectancy is somewhat greater for women than men to start with. If women marry men who are older, as is fairly common, and these men die at a fairly average age, women are left alone for a great number of years after their death.

So being single and retired is not a rare occurrence, but in fact quite common. This is in direct contrast to the advertising of mature lifestyles, which is predominantly focused on couples.

It can be challenging when couples have planned their retirement together and then one partner becomes sick and dies. To follow their old plan may seem hollow and meaningless for the person, as all the anticipated joy cannot be shared. Loss takes a period of adjustment and reevaluation. The remaining partner needs to rekindle their old interests, or develop new ones.

Negative emotions such as anger may also be present, as the remaining spouse feels gypped out of the great plans they may have had. Doing them alone may be an option, and some may do so, while others want to find something completely different.

If this is your situation, be kind to yourself. Recognize that it might take a radical action for you to move on and figure out what you want to do.

M.

Monday, January 30, 2006

Single Women and Retirement

Being single and retired has its benefits and challenges.

On the plus side, single, divorced, and widowed people now have all the freedom they would ever imagine. They can do what they want, when they want and with whom.

The downside of a single life is that there may not be built in socialization. With no daily contact with people from work, stronger networks and activities need to be planned. Doing a variety of activities, some by yourself and others in groups needs to be considered.

That being said, many many divorced or widowed people, primarily women, never want to marry again. In our generation of males there are still some who have never done homework or cooked very much at all. The prospect of having to cook three meals a day, take over cleaning and shopping responsibilities is completely unappealing. These women want to retire from housework!

More on this tomorrow.

M.

Sunday, January 29, 2006

No-Go’s

Hi:

This is the stage where life really does slow down. It would ideally be for most in the late 80’s and 90’s, at this point, some assisted living is required. Footing is unsteady so help bathing is appreciated.

Cooking can become a chore and unless there is some other intervention, often becomes sandwiches and tea, or other easy-to-prepare meals.

At this age few are still out there mowing their lawns and doing major physical activities. Many have moved to condominiums or to congregate care.

In congregate care facilities people may rent or buy a one or two bedroom suite. Upscale facilities have elegant dining rooms with a chef cooking three meals a day. If you own, included in maintenance fees are usually a number of dinners a month.

Others prefer a package which includes all meals, house cleaning, laundry and some social activities. This is not inexpensive, as the costs can go up to $3,000 to $5,000 a month. It works for many though, as they retain their independence and can just enjoy life.

The concept of “aging-in-place” deserves some consideration. The premise is that it becomes difficult to move as you become elderly. Your lack of familiarity with where you live and where things are can be problematic, especially for those with short-term memory loss.

The solution to this problem is to help parents move to a facility that has several levels of care. This should be done when they are still mentally active and capable. At this point they will identify with their new home and establish connections.

If, a few years later, their health starts to fail, more assistance can be organized. Of course this costs. For example, one care aide might be shared by four people. She (usually) would help people get dressed in the morning, help with bathing, ensure the proper medications were taken, and generally assist. This is a great help because the care aide has daily contact and is aware of the individual’s status.

The level of care can be monitored and increased without the upheaval of a move. In my opinion it is a reasonable option to consider.

Saturday, January 28, 2006

Go Slow’s

Hi:

Although many younger people think of retirement in the Go Slow mode, most baby boomers retiring today know they are Go Go’s.

But the Go Slow days will come. This is generally in the mid to late seventies. The prospect of hiking around the world and staying in uncomfortable beds to get a deal or putting up with bumpy bus rides becomes less palatable.

They find they don’t have the energy to go all day, but perhaps would like a wee nap in the afternoon. Medical issues start to take on some importance, especially when they must take medications regularly and “be careful”.

The energy just isn’t there and the step isn’t quite as sure or lively.

Now is the time to stay home more. Working in the garden and enjoying more sedentary pleasures become paramount. Reading, watching TV and socializing are great ways to spend the afternoon.

For Go-Slow’s, tours are ideal. The driver takes care of all the details. Your suitcases are dropped off at your door, and picked-up the next morning. If you want to miss an event, that’s just fine. Also, many tours that cater to seniors of this age have a slower pace. You don’t change hotels every night, but stay in one city for a few days.

If you don’t want to climb up the pyramids or the ruins of Tikal, you do not need to. You can just enjoy the view.

The Go-Slow days will come for many of us. This is the true retirement.

M.

Friday, January 27, 2006

Go Go’s

Hi:

More regarding yesterday’s post regarding Go Go’s.

These are folks just retiring, not old, in fact feeling very young. The present 55 is the new 40. They are healthy, progressive, and ready to rock-and-roll, as it were. And they know how to do it – yes they do!

The present early retirees grew up in the 60’s. They rebelled, had fun, and did what they wanted. That attitude is still there, and quite prevalent, although they needed to suppress it while they were raising their kids and working to pay off the mortgage. Now they are going to relive their youth.

They now can do all the things they ever wanted to do. They are relatively healthy, well-educated, and reasonably financially independent.

High on the list is traveling, starting businesses, especially away from the maddening crowd. Those of us who enjoyed the simple acoustic guitar sounds and the “natural” way of life want to get back it. They are opening bed and breakfasts, plant nurseries, home decorating stores and the like. They want to enjoy life and take others along for the ride.

The next fifteen years should be the best time of their life. They have money, smarts, a place to live, ambition and energy to burn.

This is not the retirement of yesterday.

M.

Thursday, January 26, 2006

Go Go, Go Slow, No Go

Hi:

Retirement stages have been simply defined as Go Go's, Go Slow and No Go.

These stages refer to the time of life and energy level of the general retirement population

Go Go is the time right after retirement and for the next several years. The basic premise is that you are probably healthier and stronger earlier in life than later.

You have lots of plans that you desire to carry out. You may work part-time or start another career which can be exciting and fun. New projects occupy your time.

Go-Go's adventure forth with their big trips now. They do the more exotic trips with less facilities and more physical challenges. The terrain may be rougher, sleeping arrangements less than perfect and long travel times in different types of vehicles are the norm.

These trips also mean a longer time away - perhaps for a month to several months. You can probably go to big urban centers at any time of life, but hiking up mountains, forging streams or white-water rafting is best attempted at 60, not 90.

More tomorrow.

M.

Wednesday, January 25, 2006

Parenting Your Parents

A new book Parenting Your Parents, by Bart Mindszenthy and Michael Gordon, cite an Ipsos Reid poll that found 36% of boomers had discussed long term care for their parents. The rest of us have not.

As my mom has been in care for 13 years, I know it can be a long and difficult process.

There were dozens of indications that she was losing touch with reality. For example, she didn't think it strange when she was brought home by the "nice RCMP officer who speaks French and has three kids" after she was found wandering around a shopping mall parking lot. Some kind person had cared for her.

Losing memory gradually can be insidious because the day to day changes are subtle. Often it's only when someone comes to visit who hasn't been there for a while that the difference becomes palpable.

Dangerous circumstances include leaving on a front burner for hours, or not remembering to take care of security. Opening doors to strangers would be an example. Driving can become a concern as well, as response times are longer, and vision not quite as sharp.

Discussing long-term care is challenging because no-one wants to lose their independence. Take the time to do an assessment of your parents capabilities.

Offer to do one thing that might alleviate concerns, such as getting a joint bank account so you could pay their bills and keep the house running if necessary.

My mom was not paying her bills - always saying she would do it tomorrow.

It's a journey we all must take.

M.

Tuesday, January 24, 2006

Working: Have Technology Will Travel

Do you have the skills to be self-employed, write, or provide consulting services?

If so, you can work pretty well anywhere in the world if you can link effectively to technology.

Most countries do not allow foreigners to come into take country and take “jobs” away from its citizens, even though you may be very qualified to fill a job in another country.

The exceptions are professional degrees – often at a Master’s level, where no one within the country is available to do a job.

However, if you want to travel, live in other countries for a while, or live in several countries, consider finding paid contracts to do some work on-line.

Or, why not work for yourself for part of your year in a country that has a warm climate and cheaper living expenses. You might put in a month in January in the sun and work hard, but play in the sun instead of the rain or the snow.

Of course, the ever-enduring image of lying on a beachfront working on your computer won’t cut it if there is not wireless access to the web and that is what you need.

But more and larger cities have some sort of wireless access. So though your contract or employer may be elsewhere, it is increasingly easy to work worldwide. What a way to go!

Monday, January 23, 2006

Stock Market Active - Go On-Line

Hi:

It’s a good idea to keep track of your investments on-line. It’s easy to become lazy and not know where you are. This is especially important if you have some penny-stock plays and need to be in and out on a timely basis.

I know plenty of people who trade on-line. It does require a basic understanding of the stock market. Stock market information is readily available. Depending on your personality style, education, work background and interests, it is not difficult to understand.

I took the Canadian Securities Course about 35 years ago, when I was more or less a child (ha-ha). I was a very young adult, however. We had to do all the calculations by hand as there were no calculators in those days.

It has stood me in good stead over the years, even though I am not technically inclined or interested in following the market on a daily basis.

My investment style is towards secure, non-volatile stocks, that always make money. If only! Lots of markets are hot today: gold, mining, uranium, oil to name a few, so if you are interested in putting your toe in the water, now would be an interesting time.

Trade on paper first or in a fictional account, on-line, until you get the hand of it. It’s not that hard. Good luck.

Sunday, January 22, 2006

Crime Rates and Public Safety

Hi,

The last factor that Dr. Warren Bland compares in his book, Retire in Style, is crime rates and safely. He looks at overall crime, violent crime and property crime per 100,000 people.

It’s an important factor to consider, and one easily forgotten if you are not used to thinking about it.

In some large cities and surrounding suburban areas crime is quite specific to neighborhoods.

Depending on where you live your experience of a particular city can be diametrically opposite to someone else. If you live in a middle or high-end area, on a leafy-tree-lined street with large boulevards and roadways, and you drive to very specific places, you might never experience any crime.

In some cities, on the other hand, taking public transit after hours or late at night, or living in a low-rent walk-up apartment can bring its challenges.

If you are moving to a new area, be sure to check out the neighborhood at all times of the day before you buy. Look around, be observant. Prices are usually what they are for a reason.

M.

Saturday, January 21, 2006

British Columbia Hits Real Estate Record

According to a Vancouver Sun article on January 18, 2006, the province hit a new sales record in 2005 of $35.3 billion. Other articles extol the record high prices of real estate in Lotusland.

The two camps in the real-estate market are, in my opinion, divided by those who have some and those who don’t.

For those people for whom the dream of owning any remotely reasonable property within the Greater Vancouver Regional District is out of reach, their wish is that this is a giant bubble that will pop.

Like the proverbial walls of Jericho, they hope the prices will come a-tumbling down. They are banking on a faltering economy, higher interest rates, and over-extended households to trigger a sales stampede and a drop in prices.

But, if you look at the several million baby-boomers who live in terribly cold and harsh climates in the rest of Canada, that scenario probably won’t happen here. If they sell out in Ontario, for example, they can do fairly well here.

I know several couples who have moved here from the rest of Canada.

I asked a friend from Montreal the other day if he was tired of the 26 days of rain we just had.

His answer, the ever so common, “Well, at least I don’t have to shovel it”.

Vancouver is also attracting international buyers.

It’s not all bad though.

For folks who have owned for a while, the rising real-estate opens options. They can move to the smaller communities, and pay cash.

For folks who don’t own, they can move to those communities also. Vancouver suburbs are not that unreasonable. With mortgage rates as low as they are, home ownership is still a possibility.

If people are still undecided, I recommend they go on line, and look at real-estate world wide. When comparing prices around the world, Canada is a good deal.

M.

Friday, January 20, 2006

Recreation In a Natural Setting

Hi:

If you are considering moving to another community, consider the outdoor recreational activities available in that community. It's important to think about what you might like to do as possible activities, as well as what you do now.

Recreation can be divided into two areas: interaction with the natural environment and activities that use community resources.

Consider the overall weather conditions and what you might want to be doing. Moving up north may be cheap, but if you can't hike because there are not many well-laid out trails and lots of bears, your hiking expeditions may be limited, especially if you don't want to become dinner.

If you love winter sports such as cross-country or downhill skiing, spend some time in that area in those winter months, and also at various other times of the year so you can imagine what you might do there in the middle of the summer.

Or, if you love the water, either by the lake or the ocean, stay back a few weeks in the fall and see what happens when the rains start and the sun disappears. Does the boating community pack up and leave? Will you enjoy the quiet cold days with not much to do? How prepared are you to deal with snow?

Smaller places can be explored in a weekend. By spending time there in the off-season, you'll be able to make better decisions about buying or moving to the area.

M.