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.

retire to the sun

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.

http://yournextgreatadventure.com/Feed/feed_rss.xml

retirement and money

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.


http://yournextgreatadventure.com/Feed/feed_rss.xml

Tags: href="http://technorati.com/tag/personality+retirement"
rel="tag">personality retirement, href="http://technorati.com/tag/retirement" rel="tag">retirement,href="http://technorati.com/tag/personality"
rel="tag">personality

>

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.
retirement and money
http://yournextgreatadventure.com/Feed/feed_rss.xml


<>

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.

http://yournextgreatadventure.com/Feed/feed_rss.xml


retirement and money>

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.

http://yournextgreatadventure.com/Feed/feed_rss.xml

Tags: href="http://technorati.com/tag/personality+retirement"
rel="tag">personality retirement, href="http://technorati.com/tag/retirement" rel="tag">retirement,href="http://technorati.com/tag/personality"
rel="tag">personality

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.


http://yournextgreatadventure.com/Feed/feed_rss.xml

<retirement and personality

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.

retirement and personality

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.

Technorati Profile

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.

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.

retirement and money

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.

retirement and money

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.

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.

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.

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.

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.

retirement, travel and money

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.

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.

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.

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.

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.

retirement, travel and money

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.

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.

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.

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.

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.