Some mistakes to avoid on the road to retirement

Our parents tell us that every mistake we make is also a learning opportunity – by doing the wrong thing, the path to the right thing is illuminated for us.

With that in mind, Save with SPP took to the Information Superhighway to see what retirement whoppers people have experienced, and maybe, what they learned from those mistakes.

CTV’s Christopher Liew suggests that “starting too late” on retirement savings and planning is a top mistake to avoid.

“If you want to build a substantial retirement fund, time is your greatest ally. The longer your retirement savings have to grow and earn compounding interest, the more you’ll have when it’s time to step back and start your retirement,” he writes.

Another mistake to watch out for is “failing to diversify your investments,” he adds.

“Putting all your retirement eggs in one basket can be a risky game. Diversification is key to balancing the risk and returns in your investment portfolio. Failing to diversify can expose your retirement savings to market volatility and specific sector risks, potentially derailing your long-term plans,” Liew notes.

Spread your retirement investments across “different asset classes such as stocks, bonds, and cash equivalents,” he suggests.

A third mistake Liew identifies is “underestimating your retirement expenses.” It’s hard to set a savings target if you’re not clear on what your expenses will be once work is done, he continues. “Retirement often brings its own set of financial demands, ranging from healthcare costs to leisure activities. Underestimating these can lead to financial strain, potentially forcing you to dip into savings faster than you anticipated,” he writes.

The Bellwether Investment Management blog provides a few more things to watch out for.

“Avoid taking on new debts,” the blog advises retirees. “This one may seem obvious, but it should still be addressed. Do not take on new debts. By the time you reach retirement you should have already settled them. While everyone is under different circumstances and you may already have open lines of credit, what is ultimately more important is not incurring new ones,” the blog advises.

“In a study published by Statistics Canada that investigated senior families and their finances, there has been a startling pattern beginning to emerge. Between 1999 and 2016, the rate of indebted families rose drastically from 27 per cent to 42 per cent. Worse yet, the median amount owed went from $9,000 to $25,000,” the blog advises.

Another common mistake is trying to do everything yourself in a complex retirement world where you have multiple sources of income, investments to draw down, more complex tax problems, all while you are getting older and a little less energetic.

Consider the help of a finance professional, the blog advises.

“Although many individuals have done well in taking care of their finances personally, there may come a point in their lives where they no longer have the desire to do so. In other cases, situations may arise where the surviving spouse isn’t familiar with the complex details of their portfolio which can lead to undue stress for their financial (and emotional) well-being,” the blog advises. Professional help is a call away, the blog reminds us.

The Motley Fool blog adds another good one.

“Not planning for longevity” is a major retirement planning error, the blog notes.

“The average life span in Canada is almost 82 years. But a decent percentage manages to live past 90, and some even farther than that. But a long life might not necessarily be a happy life if you are running out of cash faster than you run out of breath. While it’s vital that you save and invest as much as you can, planning for longevity requires taking other decisions as well, like buying a whole-life annuity to augment life-long government pensions,” the blog notes.

The Saskatchewan Pension Plan ticks the boxes on several of these concerns. You can start early on your SPP savings, and your hard-saved retirement money will be invested professionally in a diversified, professionally managed pooled fund. And if you are worried about running out of money (by living a long happy life), SPP’s annuity options deliver you monthly income for life, no matter how many candles they cram onto that birthday cake.

Check out SPP today!

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Looking for the top 10 places to retire in Canada

Where are the best places to retire in this country?

According to CTV’s Christi Dabu, recent research from Sotheby’s International Realty Canada came up with a Top 10 list – and Montreal, Vancouver and Toronto didn’t make the cut.

The cities on the list are deemed to be top retirement destinations because of “breathtaking naturescapes, top health-care facilities, and diverse and welcoming communities,” notes Sotheby’s in the CTV article.

Topping the ranking is Victoria, B.C., the article begins.

“A mild climate, beautiful beaches and ocean views are among the reasons Victoria is a popular place to retire in Canada,” the article notes. “B.C.’s capital suits those with an active lifestyle. It has golf courses as well as dozens of parks and gardens.

Next up, also in B.C., is Parksville, the article continues.

Known as “Canada’s retirement capital,” the community “has the highest concentration of seniors per capita,” CTV reports.

Parksville “also meets the needs of those who want to enjoy the outdoors. Located on Vancouver Island, its mild climate year-round means retirees have plenty of opportunities to golf and visit parks, as well as to go boating, kayaking and more on the Strait of Georgia,” the article explains.

Making the top three a B.C. sweep, next comes the Okanagan Valley.

“Spending leisurely days of retirement in wine country is another attractive option. And the Okanagan Valley has year-round outdoor activities, such as boating on Okanagan Lake and skiing at ski resorts,” the article notes, citing Sotheby’s research.

In fourth and fifth place are two Alberta cities.

“Calgary was ranked one of the world’s top five most livable cities and is one of the few cities on the list that are among Canada’s most populous,” the article notes.

Sotheby’s states in the article that “with a vibrant culture, access to top healthcare facilities, and more sunshine year-round than any other part of Canada, Calgary is a popular spot for those looking to retire in a vibrant and bustling city.”

Nearby Canmore, Alta. is noteworthy for its “breathtaking scenery in Canada’s Rocky Mountains,” and offers “year-round recreation” with a “thriving arts scene and a welcoming community.”

In sixth place is Niagara-on-the-Lake, Ont.

“Close to Toronto and New York state, this town is the heart of Ontario’s wine country. Along with access to more than 50 wineries throughout the Niagara region, this town has a vibrant culture and many galleries,” the article reports.

In seventh place is Canada’s capital, Ottawa.

“Canada’s capital city is considered ideal for those who want an urban environment with historic charm. Ottawa has some of the country’s top health-care facilities, scenic parks, museums, galleries, and entertainment venues,” CTV reports.

Quebec City, with “rich history and European charm,” Fredericton, with “tranquil tree-lined streets” and “charming Victorian architecture” and Halifax, with “breathtaking natural scenery and a friendly community,” round out the list.

Now, all you need to do to prepare for a Top 10 retirement destination is to start saving!

If you are a do-it-yourselfer when it comes to retirement saving, a great and handy toolkit is the Saskatchewan Pension Plan. Open to any Canadian with registered retirement savings plan (RRSP) room, SPP does all the heavy lifting, investing your savings in a low-cost, professionally managed pooled fund. When it’s time to start retirement living, SPP’s options include a lifetime monthly annuity payment or the flexibility of the Variable Benefit option.

Check out SPP today! 

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Avoid key mistakes that can cramp your style in retirement

When we’re slaving away in our cubicles (or, more often these days, from our dining room tables), retirement can seem a far-off, almost imaginary time when work won’t be necessary.

But CTV’s Christopher Liew warns that to enjoy a long and financially stressless retirement, there are several key planning mistakes you need to avoid.

He begins his article by noting that one in four Canadians will be over 65 by 2043, and that our country “is home to an increasing number of centenarians (those 100 and older) as well.” As recently as 1990, he continues, Canucks could expect to live to age 77. Today that number has jumped to 83.

“Canada’s senior population is growing larger and living longer,” he writes. “While this is great news, it also means the younger generations need to pay more attention to retirement planning.” So, what are the things we need to avoid?

First, writes Liew, don’t start saving for retirement too late.

“If you want to build a substantial retirement fund, time is your greatest ally. The longer your retirement savings have to grow and earn compounding interest, the more you’ll have when it’s time to step back and start your retirement,” he explains.

He then gives an example – Person A, who “opens a retirement account at age 25… deposits $1,000 and contributes $500 a month,” and Person B, who at 45 opens an account, deposits $10,000, and contributes a grand per month.

“By the time these individuals turn 65, Person A will have $731,838.63 and Person B will have just $423,324.43,” Liew explains, all thanks to the “magic of compounding returns.”

Another error to avoid is failing to diversify your investments, writes Liew.

“Putting all your retirement eggs in one basket can be a risky game. Diversification is key to balancing the risk and returns in your investment portfolio. Failing to diversify can expose your retirement savings to market volatility and specific sector risks, potentially derailing your long-term plans,” he notes.

A third mistake is underestimating your retirement expenses.

“Retirement often brings its own set of financial demands, ranging from healthcare costs to leisure activities. Underestimating these can lead to financial strain, potentially forcing you to dip into savings faster than you anticipated,” he warns.

Be aware – in advance – of “all potential retirement expenses, including healthcare, travel and hobbies,” he recommends. Plan for things like “home repairs or health emergencies,” and “consider the impact of inflation on your future expenses.”

Fourth on the list is not having a clear plan for your retirement.

“Without a defined strategy and vision for your retirement, you risk running out of funds, missing out on investment opportunities, or failing to account for expenses. A clear retirement plan helps you stay focused and make informed decisions,” he suggests.

Last, but not least, is not accounting for inflation.

“Failing to account for the gradual increase in prices over time can significantly impact the purchasing power of your retirement savings. What seems like a sufficient nest egg today might fall short in the future, especially with the rising costs of living,” he concludes.

Diversification is a key strength of the Saskatchewan Pension Plan’s Balanced Fund. All the eggs are in different baskets, including Canadian and U.S. equities, non-North American equities, real estate, infrastructure, bonds, mortgages, private debt and short-term investments. Check out SPP today – a made-in-Saskatchewan retirement program that’s open to all Canadians with registered retirement savings plan room!

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Writer offers six tips on how to achieve financial independence

Financial independence, writes CTV’s Christopher Liew, “is when an individual has accumulated enough wealth or has a passive income stream capable of covering all of their living expenses for the rest of their natural life without needing a paycheque or salary.”

While the idea of never having to work for a living again sort of sounds like full retirement, Liew’s article suggests that this financial independence can be attained through “hard work, planning, and consistent action.”

First, he writes, you need to increase your savings rate.

“Your savings rate is the percentage of your total after-tax income that you save,” he explains. By doing a thorough audit of what you are actually spending your money on, you may be able to find areas where you can cut back, he continues. “By saving more money, you’ll be increasing your savings rate.”

Next, Liew recommends that we start investing early. “Investing your money is one of the most common ways to achieve financial independence,” he explains, adding that “the earlier you start, the better, due to the magic of compounding returns.”

Make sure, the article continues, that you are taking full advantage of your Tax Free Savings Account (TFSA). “TFSA accounts are best used as investment accounts, and none of the earnings within the account are taxable,” he notes. You should also “maximize the value” of your registered retirement savings plan (RRSP) and/or registered education savings plan (RESP).

Another tip is to look for other sources of income, to boost your overall earnings and free up more money for savings, the article notes. These “extra” streams of income can include dividends from investments, freelancing, rental income, starting a business, negotiating a raise, or finding a higher-paying job.

Another great bit of advice in Liew’s article is to “live below your means.”

“If you spend all the money you make, it will be difficult to achieve financial independence. Living below your means can be one way to spend less. For example, if you get a promotion at work and your salary increases, try to keep your spending at the same level instead of immediately increasing your living costs. The value of delayed gratification will mean reaching your financial independence goals earlier,” he writes.

Finally, you’ll have an easier time of achieving financial independence if you have a “like-minded spouse,” Liew writes. If both of you are on the same page, your drive towards financial independence will be doubled, he concludes.

These are all great tips. When we were working full time we did “live below your means” by simply paying the bills based on the prior year’s salary and earnings, and banking the difference. This indeed boosted our pre-retirement savings.

One of the nice features of the Saskatchewan Pension Plan is its flexibility on contributions. You decide how much you want to contribute (currently, up to $7,000 annually) and SPP contributions can be done through pre-authorized debits, can be paid like bills online, and can even be paid using credit cards (including, as we found out, pre-paid gift credit cards). Check out SPP today!

We’d like to extend our happy retirement wishes to Bonnie Meier, Director of Client Service, who steps down at the end of 2022. We all thank her for her many years of dedicated service to SPP, and wish her all the best in the life after work that awaits her!

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It’s inevitable that at the start of any new year, we sit back and make a mental list of things we can do to make our lives better.

Save with SPP had a look around to see what people are thinking about doing, resolution-wise, in 2022, excluding financial resolutions which we covered off in another post.

The Mirror notes that 46 per cent of U.K. men, and 51 per cent of the country’s women, have made a pledge to get fit in 2022. The newspaper suggests that eating “five fruit and veg a day,” as well as trying three new activities and cutting back on alcohol can help fitness goals.

Other top picks across the pond for resolutions were to be happy and to “stop being so hard on yourself,” The Mirror reports.

Closer to home, the Burnaby News offers up some environmental resolutions. “Learn something new about nature “and how to reduce harm to the environment and yourself,” the paper advises. Other tips – “spend more time with family and friends in nature,” and speaking up to help “promote environmental protection and social justice,” will help you and the world you live in, the News suggests.

Global News reports that a top resolution for Albertans is learning a musical instrument. “Music is really cool because it’s so multi-faceted,” James Zeck of the Lethbridge Music Academy tells Global News. “It’s a great way to sort of (intellectually) keep things fresh, it’s really good for your mind and your brain, but it’s also a great way to learn… personal accountability and diligence.”

Other top resolutions cited in the Global News story include “quitting smoking, getting finances in order… (and) spending more time with family.”

The Huffington Post, via Yahoo!, offers up some more, all framed in the suggestion that rather than focusing on resolutions to lose weight, resolutions should focus on steps to get you there.

These healthy resolution ideas include “stop assigning a moral value to your food,” as well as “move your body,” and “habit stacking.”

The food-focused resolution basically means that you shouldn’t beat yourself up if you slipped up and ordered a triple cheeseburger and a milkshake. But, the article points out, foods are not good or bad, and if you assign such moral values to food, you risk “conflating what you put in your mouth with your value as a person.”

“Habit stacking” refers to identifying good habits you have — and doing them more often.

“For example, you might decide to “meditate for just one minute while brewing your coffee,” the article states. “Do that until it becomes a daily habit, then you can stack on another one.”

Finally, the CTV tells us to not lose sight of the fact that any resolution is a directional hope rather than some sort of legalistic/moral contract.

“Resolutions help if we see them correctly,” Dr. Ganz Ferrance tells CTV. “If we see them as things we must hit otherwise we are failures, then they’re not. They’re just another tool for us to beat ourselves up with.”

So, putting this all together – if you set resolutions for 2022, pick things that are achievable steps to larger goals, rather than the harder-to-achieve large goals themselves. That way, your resolutions will lead to personal progress. As they stay, every long voyage begins with the first step.

A good example of “habit stacking” might be making contributions to your Saskatchewan Pension Plan account. If you are making the occasional contribution to your own retirement security, that’s great – but why not do it a little more often? Small amounts contributed today will add up to a bigger income when your future hands you your parking pass and makes that final commute home. Check out SPP today!

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Giving seniors online tools to help them cope with the pandemic

We recall how our dear parents (now departed) were not embracers of technology. When the folks finally broke down and bought a PC in the late ‘90s, dad said he had no interest in mastering “the device.” Mom fared a little better but was frightened off by pop-ups and other net nuisances. So “the device” sat, pristine and beautifully dust-free, in a faraway corner of the basement.

So it is understandable that many older seniors aren’t comfortable with computers.

An Ontario group hopes to help change that.

According to the Niagara Falls Review, the group Cyber-Seniors was designed to get younger people to teach their elders about how to use technology.

“We started Cyber-Seniors as a fun way to get seniors connected on the internet,” states the group’s co-founder Kascha Cassaday in the article. “But when COVID hit … it was more about they need to be on the internet in order to get the basic necessities to survive this pandemic.”

The group was started by Cassaday and her sister, Maccaulee, who just wanted to get their grandparents to use Facebook to stay in touch, the Review reports.

They did so by in-person sessions, attracting hundreds. When the pandemic forced them to move online, they started attracting thousands of people, the article says.

And the effort is producing results.

“(I was) afraid of breaking the computer because I didn’t know how to use it,” says 92-year-old Beamsville senior Patricia Harvey. Despite that, she joined Cyber-Seniors to try and figure out computers.

“I like to keep busy. I’m not a knitter or crocheter,” she tells the Review.

Now, using the Internet, she can talk to, and see family members who aren’t able to visit due to the pandemic. “You don’t feel quite so alone,” she says.

Recent research cited in the Review article says online tech can definitely battle isolation, but also can keep those over 65 “safe, stay at home longer, and live independently.”

The young volunteers are finding the work very rewarding, the article concludes.

Has COVID-19 changed your retirement plans?

CTV’s Pattie Lovett-Reid recently asked her Instagram followers if the pandemic had changed their retirement plans.

The short answer, she found, was yes. “Some are accelerating their plans, and others want to delay for as long as possible,” she writes. One follower who had retired has found the isolation and lack of travel so frustrating that she is planning to return to work. A small business owner had planned to sell his business and retire to the cottage, but can’t clear his inventory, the article notes.

Some have health issues and want to retire ASAP, while others are worried they’ll lose their jobs due to the pandemic and will have to delay retirement plans.

“Life can change in a heartbeat,” Lovett-Reid advises. It may be time to review your plan and make tweaks if necessary, she concludes.

The Saskatchewan Pension Plan can help you on both fronts. First, most of the plan’s services can be accessed online via MySPP. You can check your account balance, update your personal information, learn about SPP retirement options and much more.

If you’re tweaking your retirement plans, the SPP site is equipped with online calculators so you can figure out your income at different retirement dates. Check it out today!

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There’s a lot of meat in Pat Foran’s book The Smart Canadian’s Guide to Saving Money.

The CTV “On Your Side” reporter covers a lot of ground. He starts by asking the rich and the famous about their personal money tips. The late Alberta premier, Ralph Klein, states “never spend what you do not have. It is far better… to put off a purchase for three months until you can afford it than to spend the next six months paying it off.” Don’t, Klein notes in the book, “line the pockets of your bank… line your own!”

Noted financial author David Chilton tells Foran that “as corny as it sounds, what people have to do is stop caring so much about stuff.” He adds that as he gets older “the more I realize that good financial planning is less about the intricate knowledge of the stock market and forecasting future interest rates, and more and more about discipline and not wanting so much stuff.”

And Ben Franklin once said “the borrower is a slave to the lender… be industrious and free; be frugal and free.”

But how to get there?

Foran’s book covers all the bases. Everyone, he writes, needs to track their expenses. “The most important thing you can do is monitor the amount of money that is flowing in and out of your life every month,” he notes, providing a sample worksheet to get you started.

After looking at the importance of having a spouse who is your financial partner, he talks about tackling debt. Consolidation loans aren’t always the best approach, he warns. “Consolidating various high interest rate balances into one easy-to-handle payment is often just a quick fix to roll your `junk debt’ into a bigger pile,” he notes. He defines `junk debt’ as debt “that has been rolled around so many times you can’t remember what you originally went into debt to buy in the first place.”

So, he suggests, cut back on “bad spending habits,” such as smoking and excessive drinking. A case of beer a week costs you $1,872 each year, he writes. Even $4 a day spent at Timmy’s can add up to $1,460 per year, Foran writes. Other “money wasters” that make his list are dining out often, expensive clothes and jewellery, premium gas, dry cleaning clothes you could wash yourself, buying a brand-new car, flying first class, and so on. With all such expenses, he suggests, one should first ask “can I afford it.” If not, perhaps there are cheaper ways to go, he notes.

Credit cards, write Foran, need to be paid off and cancelled. “Once you have paid off a credit card, you must let it rest in peace! You have to call your credit card company and say… please cancel my credit card.”

After mastering debt, you need to look at saving, and the power it has. If you were to save $20 a week for 50 years, you’d have $1.4 million in your pocket. “Imagine saving your own jackpot…. Even a small amount, just $20 a week, can become a fortune over time,” he explains.

Other good advice in this book – those saving via mutual funds or other investment vehicles need to take note of the fees charged. A $10,000 investment in a mutual fund with a high “management expense ratio” of 3.1 per cent would cost you $1,029 over three years – three times more than a similar fund with a one per cent fee, he notes. “That’s a huge difference,” Foran warns.

If you are saving in an RRSP or similar vehicle, Foran suggests you should “reinvest your tax refund, which most of us don’t.” RRSPs and debt reduction are both part of a “well balanced retirement plan,” he writes.

This is a great, easy-to-understand book that covers so many bases we don’t have room to explore them all here.

If, like Pat Foran suggests, you are looking for a low-fee retirement savings vehicle, be sure to check out the Saskatchewan Pension Plan. SPP will grow your money and the fee is typically only 100 basis points, or about one per cent. 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 and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

I am proud to say that my Canada includes Saskatchewan. Not that I’ve actually spent a lot of time there. I’ve been to a couple of pension conferences in Saskatoon and Regina and in June 2011 I spent a memorable couple of days in Kindersley getting to know the folks at Saskatchewan Pension Plan.

But over the past six years since I started writing for SPP, the province has rarely been out of my thoughts for more than a day or two because I’m always planning my next blog. So when I was watching a recording of the Governor General’s Arts Awards on a rainy July 1^st afternoon it occurred to me that Tommy Douglas couldn’t be the only Saskatchewanian who has made a major contribution to our country in the arts, sports, business or politics.  With a little research, I found the online magazine Virtual Saskatchewan and a series of by freelance writer David Yanko:

Saskatchewan’s Own 1
Saskatchewan’s Own 2
Saskatchewan’s Own 3

Each of these pieces lists 25 individuals who have made their mark on both the national and international stage. I have picked only five to profile, but take a look all three of these articles to learn more about the accomplishments of many of the best and brightest who at one time or another have called Saskatchewan home. 

Brent Butt (born August 3, 1966) is a Canadian actor, comedian, and writer. He is best known for his role as Brent Leroy on the CTV sitcom Corner Gas, which he developed. It was set in the fictional town of Dog River, Saskatchewan. The show averaged a million viewers per episode. Corner Gas received six Gemini Awards, and was nominated almost 70 times for various other awards. In addition, Butt created the hit TV show Hiccups and the 2013 film No Clue. At our place we never missed an episode of Corner Gas, so I’m happy to report that an animated version is in the works.

Brian Dickson was appointed a justice of the Supreme Court of Canada on March 26, 1973, and subsequently appointed the 15th Chief Justice of Canada on April 18, 1984. He retired on June 30, 1990. Dickson’s tenure as Chief Justice coincided with the first wave of cases under the new Canadian Charter of Rights and Freedoms which reached the Supreme Court from 1984 onwards. He wrote several very influential judgments dealing with the Charter, and laid the groundwork for the approach the courts have since used to interpret the Charter. Through law school and when I practiced law, I read and cited a number of his important decisions.

Singer-songwriter Joni Mitchell, responsible for hits such as Both Sides Now and Big Yellow Taxi, was born on November 7, 1943, in Fort MacLeod, Alberta and grew up in Saskatoon. In 1968, she recorded her first, self-titled album. Other highly successful albums followed. Mitchell won her first Grammy Award (best folk performance) for her 1969 album, Clouds. She has won seven more Grammy Awards since then, in several different categories, including traditional pop, pop music and lifetime achievement. To this day, folk music is my favourite genre and songs like Chelsea Morning and Circle Game have become the soundtrack of my life.

Sandra Schmirler was a Saskatchewan curler who captured three Canadian Curling Championships and three World Curling Championships.  Schmirler also skipped her Canadian team to a gold medal at the 1998 Winter Olympics, the first year women’s curling was a medal sport. Schmirler sometimes worked as a commentator for CBC Sports, which popularized her nickname “Schmirler the Curler” and claimed she was the only person who had a name that rhymed with the sport she played. Schmirler’s accomplishments caught my imagination and that of the whole country. Sadly, she died in 2000 at 36 of cancer, leaving a legacy that extended far beyond her sport.

It may seem arbitrary to mention two folk singers in an ad hoc selection of notable sons and daughters of Saskatchewan. But Buffy Sainte-Marie is so much more. This Canadian legend is 76 and still going strong. She is a singer, songwriter, multi-instrumentalist, educator, social activist, philanthropist and visual artist, born February 20, 1941 on Piapot Reserve, SK.

She was an important figure in the Greenwich Village and Toronto folk music revivals in the 1960s, and is perhaps best known for her 1964 anti-war anthem Universal Soldier, which was inducted into the Canadian Songwriters Hall of Fame in 2005. On the eve of Canada Day I had the privilege to hear this diminutive giant sing Universal Soldier plus many of her newer releases in person, at Nathan Phillips Square in Toronto. She and her music never seem to grow old.

 

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

Whether you are traveling by car, bus, train or plane to your vacation destination this summer, confirming that you have appropriate travel insurance coverage should be an item on your “to do” list. Several years ago we had to return home after one week of a two week river cruise due to a family tragedy and fortunately the trip interruption coverage under our travel insurance policy reimbursed over $10,000.

You may think that if you are travelling within Canada you are adequately covered by your Saskatchewan or other provincial medical coverage. However, Skipping travel insurance when travelling within Canada could cost you by Angela Mulholland for CTV News highlights that medicare does not cover services like an air ambulance to get you home if you are severely injured outside of your home province. If this service is necessary it could cost you thousands of dollars.

In Travel Insurance – The 6 Most Important Things to Know, life insurance advisor Jane Stygall notes that people in certain age groups may be required to answer medical questions when purchasing medical insurance. She says even when you think something is unimportant, declare everything! An inaccurate statement, even if it does not have anything to do with your medical emergency will cause your entire policy to be void.  And your medical emergency for any reason will not be covered.

If you are planning extended travel to exotic places, not just any travel insurance will do. Cost Of Travelling the World For 1 Year, Part 4: Travel Insurance by FireCracker on Millennial Revolution gives readers the benefit of her research when she and her husband Wanderer were looking for travel insurance that would support their nomadic lifestyle. One reason they selected World Nomads is that their policy covers 150+ activities like scuba diving, mountain climbing, bungee jumping, skiing, surfing, and many more.

In an extensive interview previously published on savewithspp.com, Martin Firestone, President of Travel Secure discussed What Snowbirds Need to Know About Travel Insurance. “The biggest problem with credit card coverage is there is no underwriting at time of application, because there is no application. You have a credit card. It has a travel insurance element, but it’s very difficult to understand what the fine print means,” Firestone says. “In that scenario you have a claim, and then you apply for payment. That’s when the true underwriting happens, and when you may find out that in fact you do not actually have coverage.”

And finally, if you use a wheelchair, require an oxygen tank to breathe or have other health limitations or requirements, check out Insurance Canada’s Tips For Travel With Special Needs. If you don’t have existing travel insurance through a group plan, or if your existing travel insurance doesn’t provide sufficient coverage, you may require individual travel insurance.

For example, Ingle International of Toronto markets insurance for conditions such as cystic fibrosis, diabetes, or physical disability, including plans that require medical underwriting. Medically underwritten plans may be more expensive, but help reduce the risk of a claim being denied.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
	Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

By Sheryl Smolkin

Major changes to the mortgage rules announced by Finance Minister Bill Morneau in early October have both existing homeowners and people planning to buy a home for the first time scratching their heads. They are wondering precisely what the changes are and how they will be personally impacted.

Here are some blogs and media articles that may answer some of their questions (and yours).

In his blog Dave the Mortgage Planner, Dave Larock presents a three- part look at the new mortgage reality:

Part 1 looks at changes effective October 17^th.  Beginning on that date all insured mortgage applications will be underwritten using the Bank of Canada’s Mortgage Qualifying Rate (MQR). As of the date the blog was written  the MQR was set at 4.64%, which is about double what you would actually pay for a market five-year variable-rate mortgage, and that gap helps ensure that the borrowers most vulnerable to rate rises can afford higher payments when the time comes.

Part 2 covers additional rule changes that will take place November 30^th. Until now, the rules for insuring low-ratio mortgages have been more lenient than those used for high-ratio mortgages, in recognition of the fact that low-ratio loans have more paid-in equity, which makes them inherently less risky. But after November 30, the qualifying rules used to underwrite portfolio-insured low-ratio loans will be the same as those that are used to underwrite insured high-ratio loans.

Part 3 explains why Dave believes these changes are necessary, and who the winners and losers are in the new world of mortgages. For example, he says Canadian home owners in hot markets, where property values are better protected when lending standards are raised and household debt accumulation slows are winners. However losers include high-ratio borrowers, who just saw the rate that lenders use to qualify them for a five-year fixed-rate (which most of them are choosing) more than double.

In a CTV News story, Meredith McLeod reports that until now, buyers with more than a 20% down payment opting for mortgage insurance have escaped stress testing. They were able to obtain low-ratio insurance sold through two private insurers, but backed by the federal government, subject to a 10% deductible. Starting Nov.30, new criteria for low-ratio insurance will take effect. To qualify, the mortgage’s amortization period must be 25 years or less, the purchase price be less than $1 million, the property has to be owner-occupied, and the buyer must have a credit score of 600 or more.

While the new mortgage rules respond to legitimate concerns about escalating home prices in the red-hot Toronto and Vancouver real estate markets, it is still unclear how they will impact smaller cities and towns in other provinces where prices are more stable, or in some cases even dropping. Todd Kristoff, a Regina mortgage broker told CBC there has already been a correction of roughly five percent over the last several years in Saskatchewan and therefore the changes are not necessarily needed in this province.

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