THINGS TO KEEP IN MIND

1.    When should you begin attending retirement seminars

2.    How does your spouse feel about your retiring

3.    Have you had the CARE CONVERSATION,

4.    Keep personal info up to date, record it in a book . Tell someone where it is.

5.    Record all passwords and pin numbers so that someone can access accounts

6.    Do you have hobbies or other interests

7.    How are you going to fill 2000 hours each year

8.    Do you have company life insurance? Who is the beneficiary? Can you continue the coverage  Where is the policy?

9.    Long term care and critical care insurance. When should you consider them.

10.Keep all medical records up to date with a list of all your doctors.

11.Are you single or divorced, there are different options as well as problems facing you

12.Is this a 2^nd family, then there are kids, grandkids, blended kids;  need new wills

      and powers of attorney

13.Do you have unused sick leave or vacation time coming to you

14.Are you leaving or being asked to leave; working notice in lieu of severance

15.Will your major medical follow you into retirement; fix your teeth before you leave

16.There is a difference between an annuity and other types of insurance and investment products

17.Your RRSP becomes a RIIF at age 71, how old is your spouse?

18.What is TFSA

19.If you receive a retiring allowance, remember there are tax effective ways to invest same so that CRA does not take a big bite

20.Do you have a financial advisor; fee based?

21.Do you know all the rules with respect to the Health care system in you province; what does it provide; compassionate care leave---6 weeks

22.Have you discussed burial, or planned  and paid for your funeral

23.Is this a planned retirement; Have you planned it out and discussed it with????

24.REMEMBER YOU ARE THE MEAT IN THE SANDWICH,JUST HOPE THAT THEY DO NOT BITE TOO HARD

FIRST LESSON OF RETIREMENT

What is the very first challenge you face when you retire?

LEARN TO Relax!! Let yourself enjoy what you have earned.

Yes, you are undergoing a lifestyle change – perhaps a dramatic lifestyle change. You may feel very different then when you were working. You will not have a name tag, a title, an assistant, a secretary, a supervisor, no one to set up your work or schedule your appointments.

All the respect you received from your colleagues and workers will be a thing of the past. Now you must learn to be on your own, striving to accomplish something every day that you will find fulfilling, challenging and meaningful.

Look for the positive in the life ahead of you.

So how am I going to fill my days?

You have a choice of two paths to follow.

First, if you plan to truly retire from paid work, this question can be your number one concern and one that is not planned for at all in advance or given much thought. Remember what I said, you have to fill 2,000 hours per year with something meaningful and satisfying. The same amount of time you spent working each year.

You might consider working on a part-time basis either for your old employer or for someone in the same line of work you were engaged in.

You might consider volunteer work at a charity or at your religious institution.

Turn your hobby into a new vocation.

You may find your time taken up with caring for aging parents or taking care of your grandchildren as your children may be in a family situation that needs your assistance. You may be in the sandwich generation:  parents on one side, kids and grandkids on the other, you in the middle.

 At the present time 60% of people over 60 years of age still have a parent alive.

The second path is to continue paid work. You may now finally have the time to publish that best seller in you, or open up a consulting practice in an under-served area. In this scenario there probably will not be enough hours in the day….

 From a wife’s perspective - I don’t want him around all day.

What do I do, how can I cope?

Remember your wife or significant other had your home all to herself for a long time. You came home at a decent hour and then you spent time together. Now you are in her space. She may not like it. She may send you on errands she previously did herself. She is doing this for two reasons. Firstly, the errands must be done but more importantly to get you out of her space and away from her.

Too much togetherness can be unhealthy. Your spouse had her life very well organized before you decided to stick around all the time and be underfoot.

Be sensitive as this is as much an adjustment for her as it is for you.

WHERE SHOULD I LIVE?

My wife has just passed away.  My daughter wants me to come live with her. What should I do?

You pose a very interesting question . If you are well and able to take care of yourself, try to keep your independence and live on your own. Visit often and stay in contact with the grandchildren. It is very interesting that you said it was your daughter who posed the question. Daughters are very concerned about fathers.  And I think the main reason is that they feel that men, in general, and you in particular, have always had their needs looked after by a women, their mother and she feels that anyone but a female member of the family will do a proper job. Also they do not want you to fall prey to those nasty widows, called the “Brisket Brigade” who would dearly like to attach themselves to you.

However, if you are in any way incapacitated or ill without adequate means to move to a facility, you may have no choice but to live with your daughter.

Remember always, try not to be a FIFTH wheel in your family’s lives, your lifestyle differs from theirs. Give advice only when asked.

I am single, what should I do?

In addition to all those items I have mentioned, as a single person with no spouse or significant other you are in a unique situation. I would suggest the following:

Keep your friends close and help them. You may need them if illness or accident strikes you.

Develop a network of close friends and as you age, set up a network to check up on each other at least every other day.

Watch your physical and mental health carefully.

Women constitute 72% of those persons who get Alzheimer’s disease or dementia related problems.

Understand the health care system and know what it does and does not pay for.

Seek professional advice when required and do not be too proud or independent to make the call.

WILLS and POWERS OF ATTORNEY

Right now, everyone should have a properly drawn Last Will and Testament, Power of Attorney for Personal Care and a Power of Attorney for Property. These should be reviewed at least every 5 years and especially when you retire, they should be reviewed and updated as necessary every year.

Can you explain what these documents are and what they should contain?

Let us start with the Will.  The first thing is to make sure that it is properly drawn, preferably by a lawyer who specializes in wills and estates. You must name the executor(s) for the Will. They are the people who will do whatever is set down by you, your final wishes and your bequests to individuals or gifts to charities. The executors take physical possession of all your assets, bank accounts, investment accounts and even safety deposit box keys. The executors are obliged to follow your instructions and it is their responsibility to also pay any outstanding debts that you have owing at the time of your demise.

You can name anyone as your executor and my preference is to name three with your spouse or significant other being one of them. They vote with majority ruling but you should make sure that your spouse or significant other is part of the majority; but if your marriage is shaky or it is a 2^nd or 3^rd marriage, I would seek legal counsel before going forward.

Your executors together with the estate lawyer then draw up the application for probate, pay the necessary probate fees and file the forms. All beneficiaries are notified of their entitlement and then the FUN BEGINS. There too often seems to be greedy or resentful relatives who have nasty lawyers to contest the Will.

One way that this may be overcome is to insert a clause in the will that states that anyone who commences an action with respect to the will is automatically cut out of their share of the estate. As I say, it sometimes works but you had best check with an estate lawyer.

Executors are entitled to be paid fees for their services and the amount of these fees is set down by regulation. The usual amount in Ontario is 5% of the total asset value of the estate. There are also fees based upon the work done administering those assets while under the custody and control of the executors.

The Power of Attorney for Personal Care must have a trustee to act on your behalf. This person can be same person whom you named as the executor of your will.  I suggest that you appoint a person who is intimately connected with you and knows your health and personal concerns..

You may wish to appoint a substitute decision maker to carry out your wishes contained in this document in the event the first party is unable or unwilling to act. Your wife or significant other may be your substitute. YOU CANNOT APPOINT YOUR PERSONAL PHYSICIAN.

This Power of Attorney for Personal Care comes into force when you are declared incapable of looking after your own health care needs.

In the document – or it can be on tape or through verbal communication -You should state your wishes clearly for example, if your condition is critical or terminal, outline whether you wish to be resuscitated or not; or if you wish hospice care. , DO NOT USE ‘No heroics to be done by doctors or nurses. These words are too vague to be helpful.

You can go so far as to name those you do not wish to visit you in hospital or home, even those you do not wish to attend your funeral.

Either in this document or in your will, you can set out your wishes for a funeral and all its attendant matters.

The Power of Attorney for Property comes into force when you and your chosen POA sign the document or when you become unable to look after your financial affairs yourself.  You may appoint one or more trustees; you need have only one, a second person can be named as an alternative. Your POA will have signing authority on all documents because that person is acting as if they are you in every capacity. They have complete control over those of your assets you designate once this document comes into force. So be very careful as to whom you appoint. The wrong person could bankrupt you.

As in the other two documents previously mentioned these trustees are entitled to be paid but that decision is up to you.

ABOUT RRSP and T.F.S.A.

When should one begin to prepare for retirement?

Ideally, when one becomes permanently employed or at the start of one’s career, is a good time to start. I believe that even a small contribution to T.F.S.A. would prove to be expedient; that could be when time you file your first tax return or age 18 whichever comes first.

        What are the rules for contributing to a TFSA?

At the present time you are able to contribute up to $5,000 annually into a T.F.S.A. Any sum not contributed in a year is rolled into the next and this goes on and on.  Remember that any contribution to a T.F.S.A. is not tax deductible but by the same token, any withdrawals are non-taxable.  You can withdraw your contributions plus any gains that have accrued in the account at any time. Now, remember, I said any gains and this includes capital gains on any investments held in the T.F.S.A. account.

Further, in the next or any subsequent year, you can make a contribution into the T.F.S.A. account of an amount equal to the amount previously withdrawn, plus your yearly maximum plus any contribution room you had from previous years.

      How does a TFSA differ from an RRSP?

The contribution to an RRSP is based upon 18% of your earned income, so that is a higher level than the $5,000 in a T.F.S.A.

The contribution to the RRSP is tax deductible but is also taxable on withdrawal. Once the money is withdrawn you cannot put it back into the RRSP. Remember you are limited to the 18%.