Financial Planner –

June 5, 2012

Sue's Views

Financial Tips From Sue

If you don’t read another book this year, make sure you read this one!

Do you wonder why some years back California was going bankrupt? Do you wonder why all those European countries are defaulting on loans and scaring the stock-markets all to hell? This is the book which explains it all in simple easy to read language that most of us can follow.

Think this can’t effect Canada where we are supposedly one of the best managed countries in the world? You bet it can and is actually well under way even as we read about what’s going on.

We Canadians have always stood for equality for everyone no matter who you are or where you come from as long as you aren’t harming any other human being. We’re very tolerant of different beliefs and lifestyles with very few limits. But we too have fallen into something which will create different classes of people when they reach retirement. Like the 1700 & 1800′s in England.

From this year forward 10,000 people per day will reach age 65 and be retiring. Well, maybe. On the bottom rung will be those who have been counting on the government to take care of them. Being Canadians we’re not likely to do away with the Canada Pension Plan (CPP).
This plan is universal, meaning that everyone who has worked and contributed is entitled to get their share.

Three very significant things will effect that in the future. As more and more people start claiming it there will be less and less available to share – we’ll get our fair share, there’ll just be less income to share.

Second, as more and more people retire there will be less workers contributing money into the plan. Today there are roughly 4.2 workers contributing for every retired person getting the pension. It is estimated that by 2025 there will be only 1.4 workers for every retiree. Think about that for a minute or two.

Thirdly, the funds for this pension are invested in the stock-market which goes up and down as time goes by with no guarantees. As more and more people begin taking money out of the stock-market in order to live in retirement those markets will become stagnant. They can’t grow.

On the next rung of the retirement ladder will be those who have saved RRSPs and other assets on which they will have to depend in order to supplement government pensions in order to maintain a simple style of living. Together the first two rungs of the ladder will be comprised of about 70% of retirees.

Almost all public sector workers have pension plans negotiated by their unions over and above the guaranteed CPP. Guaranteed to maintain 70% of their per-retirement income level and protected against inflation. The other guarantee is that they can retire earlier than most others. Some as young as age 50. Who guarantees this? Our federal, provincial and municipal governments. And where do these governments get their money? Taxpayers!

Today all across Canada virtually all of the defined benefit pension plans are underfunded. How will they get enough to pay those guaranteed amounts? All of the pensioners, and the workers, will need to pay significantly more in taxes in order to cover them.

Read this fascinating book to find out how to help your situation.

This matters so much to your financial future that I will even make you an offer. Go to my website or my Facebook page – Sue Ricketts Group & Living Benefits. There you will find a free offer form to fill in. I will give you a free copy of this book for you to keep if you will make an appointment to talk about it when you are finished reading. Don’t miss out.



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