Wednesday, January 11, 2012

Make sure all their ducks are in a row when it comes to Travel Insurance

Canadian snowbirds who head south for sunnier skies during the frigid winter months aren’t doing anything new – spots like Florida, Arizona and the Caribbean have long been popular with retirees hoping to swing a golf club instead of pushing a snow shovel.  
 As Canada’s population ages and more people retire, the number of snowbirds is expected to grow. Though many retirees may already be seasoned travelers, today’s new snow “chickadees” may not be so experienced, and could consequently be unfamiliar with the benefits of travel insurance.  
 “Travel insurance is something every vacationing retiree should investigate and plan to purchase – it will protect you in a crisis, and help put you and your family’s mind at ease so you can enjoy your adventures,” says Dr. Brian Aw, MD, CCFP, CTH, and an International Travel Clinic Physician. “Along with your passport and seeking appropriate pre-travel medical advice (vaccines, medications, etc.), a travel insurance policy is the one crucial document that you need.”
 Purchased prior to the trip, travel insurance can cover medical expenses, financial expenses and other losses that may be incurred while traveling – whether domestically or internationally.  Various types of plans are available and can cover lost or stolen baggage, trip cancellations or interruptions and in the worst cases, sickness or injury.
 It is particularly important for snowbirds to purchase travel medical insurance, especially if they plan to visit more far-flung destinations.
 We all know that as we get older, our immune systems can weaken and we may become more susceptible to illness.  Traveling to exotic destinations may put us at a greater risk of encountering an illness our body does not have the antibodies to fight off.  Vaccinations are strongly recommended ahead of time, but nothing is 100% protective.  Plus, getting sick or injured in a foreign country is not an ideal way to spend your vacation – not only does it cut into time spent by the pool, but it can cost thousands of dollars for transportation, medical treatment and medication.
 Our golden years are meant for us to see the world and experience adventure, and with a little planning and foresight, we will be able to do just that.
FILL OUT THE FORM COMPLETELY,TRUTHFULLY and WITH NO OMMISSIONS 

Hey Kids of baby boomers, forget about your inheritance

The heirs of wealthy Baby Boomers shouldn’t be assuming that they’ll be inheriting a pot of gold when their parents pass away. Less than half of millionaires who are members of the famously selfish generation—boomers, not their kids—think it’s important to leave money to their children. What’s more important, apparently, is for boomers to enjoy their golden years.
The survey of Baby Boomers, conducted by the investment firm U.S. Trust (and summed up by the Los Angeles Times), reveals that increasingly, Gen Xers and other boomer offspring shouldn’t expect a handout when their parents die. A surprisingly low 49% of millionaire boomer parents said that leaving money to their kids was a priority.
Though boomers have a reputation for selfishness, many boomers see themselves quite differently. After decades of personal and professional sacrifices for the sake of their children, and after paying for their kids’ educations and perhaps helping them with down payments on first homes, boomers have reached the point that enough is enough.
 After shaping their lives around the needs of their children, and, in essence, dishing out here and there what would have been one honey of an impressive inheritance if given in one lump sum upon one’s death, boomers believe their days of sacrifice are over.
 As one expert told the LA Times:“I do not see my baby boomer clients giving up a vacation or wine or dinners out so that they can leave more money to their children, because they feel like they’ve already done it for their kids,” said Susan Colpitts, executive vice president of a wealth management firm in Norfolk, Va.
Boomer parents haven’t just stopped worrying about their kids. Instead, what aging boomers seem to be saying, through the survey and their actions, is that they don’t have much confidence in their children’s financial sense, and throwing more money at them isn’t going to help. So why not just use the money to enjoy yourself and take that round-the-world cruise?
In the U.S. Trust survey, one-fifth of boomers fear their children would squander any inheritance, and one-quarter worry an inheritance would make their heirs lazy (lazier?). Just 36% strongly agree that their children will be able to work together to make financial decisions once their boomer parents are gone. The majority of millionaire boomers (52%) even keep their kids in the dark as to exactly how much they’re worth.
That’s good, I suppose. If the children and grandchildren knew everything, they’d probably be resentful about how much potential inheritance money their boomer forefathers blew in their golden years, rather than remembering how generous and supportive their boomer parents were when they were alive.
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Thursday, January 5, 2012

Financing Your Retirement

One of the “funnies” my friend forwarded to me the other day by email was a website that can forecast my life expectancy if I plug in the relevant details. I figured why not? I uploaded the requested data and the answer was 101.5 years!  Well, I am in my early seventies in pretty good shape and look after myself, my mom died at 96, statistics claim centenarians are becoming one of the fastest growing demographics and medicines are keeping us alive even longer. There is a reasonable chance that my demise at the age of 101.5 is not a joke.


There is only one problem: I will have far outlived my retirement funds! When I retired 10 years ago, like most people, I calculated the cost of living on the basis of 60-70 percent pre-retirement income, a foundation still used today. I did all my due diligence with a budget and with the mortgage paid off, and no other debts, I thought that my wife and I were well within the comfort zone of income coming in from investments and pensions.


It wasn’t too long before reality surfaced - nothing drastic, just “things” that were never given a heading in the old budget. More to the point, it was the realization that while our income was more or
less fixed, our needs were increasing.
What are your missing items? If you are about to retire, and counting your chickens, listen up! If you are well into retirement, you can just nod and say, “Yup, he’s got that right!”


BIG TICKET ITEMS
If you’ve decided to stay in your house, budget for that new roof or other major maintenance. If you’ve downsized and moved to a townhouse or condo, strata fees will increase regularly and there are regular assessments. For those who haven’t switched to riding a bike or a scooter, you’ll eventually need to replace your car. Allocate funds for these items unless future depletion of capital is not a problem.



FAMILY
God bless them, those kids and grandkids - the more the merrier. With their significant others, how many birthday and Christmas gifts need to be purchased? What about grads and weddings or other special occasions? Put aside a chunk of money for these expenses. Oh, and let’s not even talk about the potential cost of helping out children coming home after a marriage break up, job loss or other financial disaster - the kind of events that could trash any budget.



HEALTH
If you were lucky to keep your extended health insurance from employment, great! If not, you pay the premiums, which increase with age and health problems.
If you pay the freight as you go along, just some simple blood pressure meds, vitamins and supplements, eyeglasses and perhaps a hearing aid, physio and dental may run into thousands. As you age, these costs keep going up! And have you considered critical illness insurance?



TRAVEL
That was on the top of the list for your retirement activities, right? Before you go anywhere, you had better have travel insurance and hope to be healthy, because on top of the age-based increases in premiums, the extras for various health problems are significant. Then you need to allow for the ever-increasing cost of all travel-related functions and hope that in 10 years’ time you can afford to travel further than Calgary!



INVESTMENTS
Even with the best financial advisor managing your funds, another trashing by the markets like a couple of years ago, may put a major damper on your financial future. You’ll need all the help you can get unless you are a financial wizard or independently wealthy, in which case, none of the above would bother you. Happy retirement!

Article by, By George Zador

Physical Limitations When Travelling

Travel Tip - Seniors should consider their physical limitations when planning a trip. Those with heart disease, for example, might choose an itinerary that does not involve strenuous activities. Seniors may also have a hard time recovering from jet lag and motion sickness, so they should take these factors into account when planning a trip.
Source: www.seniorsgotravel.com