Business Insider

August 26: BEST FROM THE BLOGOSPHERE

August 26, 2024

A man with a pension – that does impress her much!

Singles out there, take note – having a pension may be worth more to you than you think!

According to a recent article in Business Insider by Nicola Prentis, you may get more attention if you list a “pension” as one of your attributes on your dating profile.

“I ask men if they have a pension before I seriously date them,” she writes. “`Have you got a pension?’ isn’t the first question I ask a date but it’s high on my list if I’m considering an actual relationship,” she continues.

“It’s not about how much they earn, and I’m not looking for someone rich. In my opinion, a low-earning saver, like me, is actually much better off financially than a high-earning spender with no safety net. But I have to ask about pensions to really find out where our future is heading as a couple,” Prentis explains.

So why is having a pension more attractive to her than having big bucks? Let’s read on.

“One guy I dated had his own business and earned four times more than me. He kept offering to buy me flights to visit him, sent me expensive flowers, and had a penchant for buying anything in the grocery store labeled `finest,’” she writes.

“Big spenders make me uneasy because I don’t enjoy extravagance and I’m happier living simply. But my fears were confirmed when I asked him the pension question,” Prentis tells us.

It turned out that, at 50, he had no emergency fund to call on, no pension, and no investments. Even more telling about how the balance of our future relationship would be was when he added, `I don’t understand all that stuff but I’m happy for you to manage it for me,’” she writes.

“That was my cue to end it. No relationship can work if one person is always the `fun police’ and has to do all the labour because the other can’t be bothered to learn. I ended it and truly hope he put that flower money toward a pension,” Prentis notes.

Her article tells the tale of another prospective date who, while equipped with an impressive collection of high-end running shoes, had no pension. His retort – “who knows how long we have to live” – did not impress her, the article adds.

Prentis says she feels this way because, as a single mom “who had her head in the sand for years” about retirement savings, she finally sorted things out a few years ago. She makes small contributions to her retirement savings account each month that are automated, so that she doesn’t forget to contribute and stays on track.

Now that she has taken control of her personal finances and long-term retirement savings, the article continues, she has recognized that “attitudes toward money are one of the most persistent and destructive factors in relationship issues. That’s a clear theme when I look back at my past relationships. Disagreements about money caused more than just arguments. They brought a feeling of distance from a partner because their beliefs and behaviors around money were so alien to me,” she writes.

“So when I’m asking if a guy has a pension, what I’m really asking is: `Are you thinking about the future or just about enjoying today?’ It’s not that there’s anything wrong with living in the moment. After all, I get that `you can’t take it with you’ and `there’s no point being the richest person in the cemetery.’ But, to me, I can enjoy the present more if it’s not ruined by worrying about what will happen later if I don’t have money.”

It’s an interesting perspective on the importance of retirement savings.

If you are fortunate enough to have a retirement savings program through your workplace, make sure you are contributing to the max. If you don’t – or you want to augment what you have – the Saskatchewan Pension Plan may be just the program you’ve been looking for. You can decide how much you want to contribute, and how often – your contributions can be made through pre-authorized transfers from your bank account, or by setting SPP as a bill through online banking and paying that way, or even via a credit card.

The heavy lifting of investing for retirement will then be in the capable hands of SPP, who will grow your contributions in a pooled, professionally managed pooled fund. At retirement, you can choose from options like a lifetime monthly SPP annuity, or the flexible Variable Benefit option.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


May 13: BEST FROM THE BLOGOSPHERE

May 13, 2024

The idea of stepping away from work and into retirement is becoming an unaffordable “luxury” south of the border, reports Business Insider.

Many older Americans, the article notes, are in “tough financial straits,” and “the decline of pensions and the rise of student-loan debt are contributing to the retirement crisis.”

As a result, many Americans in their 70s are “still punching the clock” and working.

“As much as I love my job and what I do, in my darkest private moments, I think I’m going to die in this job. I’m going to die in this office because I have no way to get out,” says Marcia, a senior in her mid-70s, in the article.

Medical bills left over from her late husband’s care are part of the reason she’s still working, Business Insider notes.

Marcia is one of many retirees who feel left behind by the American dream’s promise that a life of hard work would be rewarded with years of rest. Now, as with many traditional economic milestones, retirement has become a luxury reserved only for those who can afford it. More people over 65 are working as pensions disappear, people live longer, and Social Security benefits are seemingly always in peril,” the article continues.

The declining availability of workplace pensions in the U.S. is definitely part of the problem, the article notes.

“Just under 20 per cent of Americans 65 and older were employed in 2023, up from 11 per cent in 1987,” the article reports, citing research from Pew. And it may be that more older people are working because they have no alternative, the article points out.

“In 2007, 21 per cent of low-income households had a retirement account balance; by 2019, that fell to 10 per cent, according to an analysis from the Government Accountability Office. And as younger generations try to save while also paying off homes and student loans, it might only worsen,” Business Insider tells us.

The article introduces us to Steve Biddle, 69, who “lives in a small, low-income apartment in North Carolina” and who is “worried that at some point, he’ll become infirm and unable to work.”

“I’m scared to death of the possibility of homelessness. I don’t think I could handle that very well,” he tells Business Insider. “I think I’ll always be able to have a place to be, but there are so many homeless folks my age that it scares me to death.”

The article concludes with some American realities that are somewhat the same here – if there’s not a good workplace savings plan, and you don’t have enough to save on your own, and government pension benefits are modest, then indeed you will probably continue to work well past traditional retirement age.

If having guaranteed retirement income is a priority for you, the Saskatchewan Pension Plan has a range of annuity products available as retirement option. All provide you with monthly income for life. Some options also provide benefits for a surviving spouse or beneficiary. SPP is open to any Canadian with RRSP room, so if you don’t have a pension plan at work, SPP is an option worth exploring.

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Apr 8: How do rich folks invest their money?

April 8, 2024

Any of us who play golf watch with awe as better golfers blast their drive 100 yards past ours, and putt for birdies instead of bogeys. What, we wonder, are they doing differently to be having such success?

Save with SPP had those same sorts of thoughts about investing recently. After taking a boat tour of the river/canal network of Fort Lauderdale, Florida, we wondered what did folks do with their investments that brought them here – massive, waterfront houses with multi-storey crewed yachts?

Let’s see what the Interweb tells us.

An article from The Globe and Mail suggests that “the wealthy have a greater exposure to real estate and alternate investments in their portfolios – as much as a third.”

The article quotes Nancy Grouni of Objective Financial Partners Inc., in Markham, Ontario, as saying “a typical portfolio breakdown would be 25 per cent real estate – excluding their personal residences – plus 10 per cent alternative investments such as hedge funds, derivatives, foreign currency and private equity. Then a third of the portfolio consists of cash and fixed-income vehicles, and the balance is in equities.”

“I find that people with a higher net worth tend to be more comfortable with those non-traditional, alternative ways of investing,” Grouni tells the Globe. “They have invested in private equity through personally held corporations; that’s how they earned a living.”

Writing for Business Insider, Peter Syme tries to find out the investing preferences of what he calls “ultra high net worth individuals,” or UHNWIs.

His research breaks it down as follows – 26 per cent is invested in equities, 34 per cent is in commercial property (21 per cent of the total commercial investment is direct, meaning owning the property, while the rest comes through real estate investment trusts or REITs), 17 per cent goes into bonds, private equity (again this means direct ownership of something, such as a business) gets nine per cent, “investments of passion” get five per cent and gold, three per cent. Seven per cent is invested in “other” investments, and the final two per cent is invested in cryptocurrency, the article concludes.

What’s an investment of passion? “Art, cars and wine – which may be bought for enjoyment or simply as an investment,” the article notes.

The Medium blog looked at folks in the U.S. who were millionaires, but perhaps not yet UHNWIs, and got a different asset mix.

“On average, the portfolios of the wealthy are heavily weighted toward equities, which make up 53 per cent of assets. The remainder is largely divided amongst bonds (15 per cent), cash (11 per cent) and CDs/money market funds (nine per cent). Real estate, excluding the primary residence, comprises just six per cent of their net worth,” the article notes, citing research from the National Bureau of Economic Research in the U.S.

There’s much more emphasis on owning stocks in this group, the article notes.

“Take it from the best: Warren Buffett’s will dictates that 90 percent of his wealth be invested in stock market index funds when he dies, with the remainder in government bonds,” concludes.

An article from Forbes offers a look at the investment habits of the wealthy, noting that they tend not to “sit” on their money, but keep it mostly invested.

As well, their focus is on “a year-over-year increase in net worth,” so “they don’t waste a considerable amount of time on the details.” They “live below their means,” avoid debt and paying interest, and are very aware of their income and expenses.

We once read a quote from Mark Cuban, well-known U.S. entrepreneur, who said that once you begin investing, try not to dip into that money – let it grow. It is certainly interesting to take a short look at how the richer half invests!

Members of the Saskatchewan Pension Plan don’t have to sweat out an investment strategy for their savings. SPP’s asset mix is currently 10 per cent Canadian equities, 16 per cent U.S. equities, 15 per cent non-North American equities, 11 per cent real estate, 18 per cent infrastructure, 13 per cent bonds, six per cent mortgages, and 10 per cent private debt, with the balance (small) in short-term investments. SPP isn’t sitting on its cash – it’s carefully growing its members’ contributions to help fund their future retirements!

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Is there gold in your old, obsolete tech?

May 19, 2022
Photo by Elly Filho on Unsplash

Most of us have an old flip phone lying around, or a Windows 7 laptop gathering dust in the basement, or a collection of our old Palm devices from the early 2000s. All this tech – which no longer has a current use — has long been replaced with new and better stuff.

But is there any value left in all that old, obsolete technology? Save with SPP had a look around to find out.

Old cellphones, reports Yahoo! News, may still hold quite a bit of value.

“The trade-in value will depend on the type of phone, how old it is and its condition, but you may be able to get $100 (U.S.) or so for even a fairly dated iPhone model. An iPhone 8 64G in good condition is typically valued at $105 U.S., according to SellCell.com,” Yahoo! News notes.

Old laptops, the article continues, can be worth “$400 to $800 U.S.,” depending on “the model, the year, and its condition.”

Business Insider offers a few more suggestions. Remember the old Speak and Spell device – a sort of fun way to learn spelling for kids – from the 1970s? These old devices, manufactured by Texas Instruments, “can fetch anywhere between $50 and $100 U.S. on eBay, depending on its condition,” the publication reports.

Can you recall the days when a Sony Walkman was the way to make your music go mobile? These “wearable” little cassette players, first rolled out in 1979, are now worth “between $300 and $700 U.S. on eBay.”

An original iPhone in the box is worth up to $15,000 U.S., the article adds. And if you happen to have a rare Xerox Alto personal computer – one of the first to use a mouse – your 1973 vintage machine is worth $30,000 American, the article adds.

The Komando website reports that factory-sealed original Nintendo games can be worth a small fortune — $75,000 U.S. for an original copy of the Mega Man game, for instance.

An original Apple Macintosh computer will net you $2,000 U.S., and an old Commodore 64 computer will be worth $1,200 in good condition.

Save with SPP took a peek on eBay to see if our old Palm devices were worth anything. Surprisingly, they were listed from $35 to $55 Canadian. Our rare Samsung Windows Phone is similarly available for $25 to $35 in loonies. So, you never can tell.

If you are able to turn any old tech from trash into cash, a great destination for those dollars is a Saskatchewan Pension Plan account. Those old tech devices will serve your future self very well, as SPP will invest the proceeds from their sale, and over time, turn obsolete tech into future retirement income. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


June 7: BEST FROM THE BLOGOSPHERE

June 7, 2021

In Japan, has 70 become the new 60?

Here in Canada, 70 is the latest you can start taking your Canada Pension Plan payments, and a date when you can begin thinking about what to do with your registered retirement savings plan.

But in Japan, according to HRMAsia, it’s the new retirement age – up from age 65.

Companies, the magazine reports, will now be “required to retain workers until they are 70 years old.” The reason for this legislative change, we are told, is two-fold. Due to the fact that Japan has a falling birthrate and an aging population, there’s a labour shortage. The aging population is also driving up the cost of pensions, the article notes.

The legislation’s main focus is allowing workers to stay on the job longer. The old retirement age of 65 is no more, the article says, and legislation permits workers to stay on past the new, higher age limit of 70, or to work in retirement as freelancers.

It’s an interesting decision. Here in Canada, there was talk at one time – and later, federal legislation – that would have moved the start of Old Age Security to age 67, for some of the same reasons the Japanese are citing. While the present government reversed this plan, we are now experiencing some of the same issues Japan is experiencing. It’s something to keep an eye on.

Could we see an era of super inflation once again?

When we tell the kids that we once lived through an era where wage and price controls limited our pay raises to six per cent – and where mortgages and car loans had teenage interest rates attached to them – their eyes doubtless glaze over at this litany of impossible-sounding boomer factoids.

Could the crazy interest rates we saw in the ‘80s ever return?

One U.S. professor says yes. Speaking to CNBC in an article carried in Business Insider, Prof. Jeremy Siegel of Wharton says “I’m predicting over the next two, three years, we could easily have 20 per cent inflation with this increase in the money supply.” The increased money supply Stateside is due to “unprecedented” fiscal and monetary stimulus, he states.

Money supply is up 30 per cent since the beginning of 2021.

“That money is not going to disappear. That money is going to find its way into spending and higher prices,” Siegel states in the article.

“The unprecedented monetary expansion, the unprecedented fiscal support, you know, I think excessive, was first going to flow into the financial markets, into the stock market, and then once we’re reopening, and we’re right at that cusp, it was going to explode into inflation,” he concludes.

When you’re saving for retirement, it’s usually a very long-term deal. You may not starting drawing upon any of your savings until you are 70, and there’s a chance you will still be banking on retirement money until you are in your mid-90s. So a balanced approach, a portfolio that has exposure to Canadian and international stocks, bonds, real estate and other sectors is the way to go to avoid having all your nest eggs in the same basket. If you don’t want to take on nest egg management yourself, rest assured that the Saskatchewan Pension Plan is there to manage things for you. Their Balanced Fund has averaged an impressive eight* per cent rate of return since the plan’s inception 35 years go.

*Past performance does not guarantee future results.

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Nov 30: Best from the blogosphere

November 30, 2020

Canadians budgeting better, many will work past 65, research says

2020 has been a really strange time, one where we’ve lost a lot of people we care about, and have been generally beaten up financially, all thanks to the pandemic.

But a new study from the Chartered Professional Accountants of Canada (CPA), referenced by Business Insider, suggests that we Canucks are bearing up fairly well under the strain.

The study, according to a CPA news release, “shows great variations in how Canadians are coping and even succeeding during this unprecedented time.”

We seem to feel we are handling our finances well, the study reveals. Seventy-eight per cent of us believe we can “stick to a budget” and 81 per cent think we “can successfully manage our debts,” the study finds.

CPA Canada’s Doretta Thompson credits increased financial literacy for these strong numbers.

 “Providing financial literacy information is essential in these unsettled times as it can assist individuals and families in making smart decisions to successfully manage their financial wellbeing,” she says in the release.

The research shows nearly half of those surveyed – 49 per cent – have “modified their savings strategy,” with 63 per cent having savings accounts, 60 per cent with Tax-Free Savings Accounts, and 53 per cent contributing to either a Registered Retirement Savings Plan or a registered pension plan at work, the release says.

That focus on savings is important, the study notes. One in four of pre-retirement age respondents says they plan to retire in the next 25 years. Forty per cent of the pre-retirees plan to work past age 65, the release adds, and 43 per cent say they will do so because “they cannot afford to retire.”

An impressive 60 per cent of those surveyed have put aside funds for retirement in the last five years, the study found.

The pandemic has made most of us feel a bit of a pinch. The CPA survey found that 61 per cent of respondents “cut back on day-to-day spending,” and 49 per cent have developed household budgets, which 86 per cent say they are following.

“It’s encouraging to see many Canadians taking action to stay afloat during the fiscal turmoil of today but also looking to the future,” Thompson states in the media release. “Our country’s challenge is to ensure every Canadian has the knowledge and means to be financially secure.”

Personal finances, and the related issues of personal debt (or wealth) are things we Canadians don’t always like to talk about. An old saying in pension circles is that if you ask 100 people to describe a perfect wedding, you will get 100 different answers. The same is true if you ask them about a perfect retirement and how to save for it.

What the CPA is saying is that the more we know about saving, and the savings vehicles available, the more likely it is we will use them. And the more we understand debt, and how to manage it, the less debt we will all carry. It’s solid advice – educating yourself is a gift that keeps on giving.

Whether you are just starting to save for retirement, are midway to retirement, or are at its front door, the Saskatchewan Pension Plan has tools to help you. SPP invests your savings, either via contributions or transfers from other plans, and then at retirement time, can convert those savings into long-term security in the form of a monthly pension amount – for life! Why not check them out today.

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


Mar 16: Best from the blogosphere

March 16, 2020

The big three – divorce, debt and student loans – can hamper your retirement savings efforts

We all like to say that “life gets in the way” is a chief reason why we can’t put money away for retirement.

An interesting piece in Business Insider takes a look at the top three killers of retirement dreams.

First up, the article notes, is divorce. “Divorce impacts all facets of your finances, but it can hit your retirement savings especially hard,” the article notes. That’s because retirement assets, such as retirement accounts and pensions, can be subject to splitting when couples break up, the article explains.

The article, written for a U.S. audience, suggests that retirement accounts “may be divided equally” on marriage breakdown. So you might lose half your nest egg, and if you are the spouse paying support, there’s another expense that can “eat away at your ability to save.”

The article advises those going through a divorce to get their retirement plan rolling again as soon as things have settled.

The second major retirement savings killer is consumer debt, the magazine reports. “While getting out of debt can be tough, it will be even harder to save for retirement with monthly debt payments in the way,” Business Insider tells us. A U.S. study cited in the article notes that 21.3 per cent of those surveyed agreed that consumer debt “prevented them from reaching their savings goals.”

The article suggests focusing on higher-interest credit cards and credit lines first.

Finally, the article says, dealing with student loans is considered the third barrier to retirement. Again, this article is talking about the U.S. situation, but here in Canada, the average student was $27,000 in debt 10 years ago. That number, taken from the Vice.com site is bound to be much higher today. That’s a lot of money for entry-level workers to have to carry.

The article concludes that you can’t predict how your life will go. There’s no surefire way to avoid a divorce, but you can try and limit your consumer debt and where possible, pay down student loans later in life when you are making more.

The article notes that those who start saving for retirement at age 25 tend to have “tens of thousands” more dollars in their retirement plans than those who start at age 35.

If you’re intimidated about taking that first major step into retirement saving, help is on the way via the Saskatchewan Pension Plan. You can start small, perhaps in the days when you’re just starting out and juggling student and other debt, and then ramp up savings when better times arrive. Meanwhile, the experts at SPP are growing your savings for you, at low cost and with an impressive track record of returns. Check them out today!

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing, classic rock, and darts. You can follow him on Twitter – his handle is @AveryKerr22

Jul 9: Best from the blogosphere

July 9, 2018

A look at the best of the Internet, from an SPP point of view

Canadians begin to make a dent on their collective debt
As interest rates begin to creep up, it appears that Canadians’ thirst for low-interest debt is finally starting to be slaked.

According to Bloomberg News via the Financial Post, the debt to income ratio for Canadians “dipped” to 168 per cent in the first quarter of 2018. That means that the average working Canuck owes $1.68 for every dollar he or she earns. It’s down from 170 per cent in the last quarter of 2017, the Bloomberg article notes.

Debt is often described as the destroyer of retirement dreams. If you are maxed out on all your credit cards and credit lines, there is precious little money left to put away for retirement. If you don’t have a workplace pension plan and are relying on your own savings for your future retirement, the pressure is doubled.

It appears that Canadians are beginning to turn the corner on debt. If you’re in that situation, consider starting to put a little away for life after work. Start small and build up your savings as debts are paid off. The Saskatchewan Pension Plan provides the ideal way to put a little away now so that there’s a bit of security later on – visit their site at www.saskpension.com for full details.

What are the habits of those who retire rich?
Writing in Business Insider, financial advisor Roberto Pascuzzi says there are several key characteristics he has noticed in wealthy retirees.

First, he says, they don’t get distracted from their overall plan. They are realistic about their wealth creation plan and aren’t hoping for “magical” investment gains. And they don’t worry about what others think – they don’t seek approval, he writes.

They make smart, long-term financial decisions and don’t look for a “get rich quick” home run. They are mentally tough and well organized.

They visualize the goal of retiring rich, and they dream big “with a realistic foundation.”

A systematic approach to retirement can help you get there in style. Pay yourself first. Be consistent and methodical in your savings – don’t lose focus and keep a steady stream of income directed at the target. Get rich slowly and avoid trying to hit home runs via your investments. With a little homework we can all get there.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. After a 35-year career as a reporter, editor and pension communicator, Martin is enjoying life as a freelance writer. He’s a mediocre golfer, hopeful darts player and beginner line dancer who enjoys classic rock and sports, especially football. He and his wife Laura live with their Sheltie, Duncan, and their cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22