Having a will is something that we seem to know is very important, yet don’t seem to find the time or money to get rolling on.

According to the CBC, citing research from 2017, “more than half of Canadians don’t have a last will and testament,” with 18 per cent saying they can’t afford one, and five per cent feeling they don’t have time to make one.

Another reason given by some, the article continues, is that they don’t think they have “enough assets to make the process worthwhile.”

But, points out the Savvy New Canadians blog, having a will is very important.

“Thinking of your own mortality can be scary, but death is an inevitable part of life and being prepared is one of the best ways to bring you and your loved ones some financial peace of mind,” the blog advises.

The blog offers five key reasons why we should get a will done:

• A will “protects your financial assets and investments.”
• It “ensures your relationships are recognized,” meaning it sets out who you want to inherit your money and possessions, instead of leaving it up to the government to figure out.
• It “guarantees a plan” for any minor children.
• While there is no estate tax in Canada, having a will can help minimize “estate administration taxes,” such as your final income tax returns and, in some cases, a probate fee.
• It lets you leave “legacy gifts” to charities or non-profit organizations.

Writing for Waterloo News, published by the University of Waterloo, estate planning lawyer Keith Masterman talks about the problems that can crop up when someone dies without a will.

“If you die without a will, you are said to die intestate. The ramification can be dire. You do not choose your beneficiaries; your estate will be distributed according to a government scheme. The scheme is set out in provincial legislation and what your loved one will receive depend on the province where you reside,” he warns.

As an example, he notes that “in all provinces, a surviving spouse will inherit at least a portion of an intestate estate,” but what they get depend on what province they live in.

“British Columbia, Alberta, Saskatchewan, Nova Scotia, Quebec, Nunavut and The Northwest Territories all recognize a common-law partner as a spouse. In the other provinces—Manitoba, Ontario, PEI, Newfoundland and Labrador and the Yukon—only a married survivor is recognized as a spouse,” he writes.

This can be complicated for those of us who marry, separate, and then live common-law with a new partner, he explains. Depending on where the individuals involved live, the common-law partner might be disinherited if their partner dies without a will, notes Masterman.

While most think getting a will is prohibitively expensive, the CBC article suggests that it doesn’t always have to be.

“These days, we have more and arguably easier options than ever before when it comes to will preparation: will and estate lawyers, businesses that offer fixed prices on lawyer-provided services, will kits, will-preparation sites and even DIY legal forms that are available for free online,” the CBC suggests.

So, what’s involved in doing up a will?

According to Canadian Living, you need to have an executor in mind, someone who “carries out the directives in the will, making sure whatever you decided upon happens.” It’s typical, the magazine reports, for “a trusted friend or relative” to be chosen as executor, or a lawyer.

You also need to appoint people who can act on your behalf if, in the future, illness or injury prevents you from making decisions. One such “power of attorney” should be appointed/named to look after your finances, and another for your health. The article says it is typical for two different people to be picked for these roles.

If you have young kids under 18, Canadian Living notes that a will can be used to “name a guardian” for your kids. Without this guardianship being set out in a will, it would be up to the courts to decide where your kids will live.

As for divvying up your estate, “if you don’t have a will, the government will decide who gets what,” the article advises. “In most cases, the surviving spouse inherits the first $200,000 of an estate and the rest would be split between living parents and children,” the article adds.

Other advice from Canadian Living includes the fact that “only an original will” is valid – not a photocopy, and that once you do your will, you should update it after “any major live event, such as divorce, death, birth, or change to your economic status.”

While getting a will done can by a lawyer can costs hundreds of dollars, and up to $1,000 if you have a complicated situation, Canadian Living concludes that “whatever the cost, it’s worth it. You don’t want a judge deciding your estate’s fate.”

Just as having a will is important, so too is saving for retirement. Not many of us have a retirement savings program at work. If you’re saving on your own for retirement and have some registered retirement savings plan room, why not kick the tires on the Saskatchewan Pension Plan?

SPP can be a do-it-yourself retirement savings for you. You decide how much to contribute, and SPP does the rest – investing your contributions in a professionally managed, low-cost pooled fund. And when it’s time to retire, you can choose such options as a lifetime monthly SPP annuity payment, or the Variable Benefit, where you decide how much to take out, and when! Check out SPP today!

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Everyone talks about investing on their own for the long term. But what’s involved?

Save with SPP took a look at a few articles on getting started in investing, and while this is a huge topic that has spawned a library-filling collection of books and major education programs across the country’s universities and colleges, we hope these few tips will help newbies think about how to get started.

At the Savvy New Canadians blog, the first recommended step is to find yourself “an online brokerage account,” which the blog says makes it “much easier to trade stocks.” These days, the article notes, there are online brokerages with very low trading prices, and some with no fees at all.

The article explains that stocks, bonds, exchange-traded funds (ETFs) and mutual funds can all be easily traded through an online brokerage.

You’ll also have to decide what type of investment account you want. A registered account (such as a registered retirement savings plan) is “used to save for retirement and defers taxes on your earnings until you make withdrawals.” A Tax Free Savings Account (TFSA) “offers an opportunity to invest and earn tax-free returns forever.” A non-registered or cash account is the other option – you pay taxes on income and capital gains.

OK, we have an account, we have a basic knowledge of types of investment and savings vehicles. What’s next?

First, advises Investopedia, figure out what your “tolerance for risk” is.

“Stocks are categorized in various ways, such as large capitalization stocks, small cap stocks, aggressive growth stocks, and value stocks. They all have different levels of risk. Once you determine your risk tolerance, you can set your investment sights on the stocks that complement it,” the article explains.

In other words, are you going to be OK if the value of the security you buy goes up and down by 10 or 20 per cent in the short term? If you aren’t, you may be less interested in stock-related investments, and more interested in less volatile, fixed income-type investments.

Goal setting is important as well, the article notes.

“If you’re just beginning your career, an investment goal could be to increase the amount of money in your account. If you’re older, you may want to generate income as well as grow and protect your wealth,” the article notes.

Finally, the article talks about three investment styles.

If you are confident you know enough about the markets to go it alone, that’s an option, the article notes. “Traditional online brokers allow you to invest in stocks, bonds, ETFs, index funds and mutual funds,” the article tells us.

Alternatively, the article says, you can find yourself “an experienced broker or financial advisor” to help you make your decisions. “This is a good option for beginners who understand the importance of investing, but may want an expert to help them do it,” the article adds. A third, newer option is to use a robo-advisor, which is “an automated, hands-off option that typically costs less than working with a broker or financial advisor. Once a robo-advisor program has your goals, risk tolerance levels, and other details, it automatically invests for you.”

Investment guru Warren Buffett has a couple of memorable bits of advice on investing. His giant firm tends only to invest in businesses where they (Buffett and his team) feel they understand how the business works. He also likes the idea of investing half your money in index funds, and the other half in safe, government backed securities.

As mentioned, this is a very broad topic, so find out as much as you can before you enter the choppy waters of investing, and do consider getting professional advice to get started.

Alternatively, if you’re saving for retirement and want expert help, consider joining the Saskatchewan Pension Plan. All you need to do is contribute savings, the experts at SPP will handle the investment decisions at a very low cost in a professionally managed, pooled fund.

At the end of your worklife, your options for retirement income include getting a lifetime annuity (a monthly payment for life) or the flexibility of deciding how much income you want to receive through our Variable Benefit. Check out SPP today!

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