We met last week. Daniel just turned 70. Healthy and happily married to Lucy, they are expecting their first grandchild. “Perfect timing,” they thought. Daniel did not start to receive CPP, as he is maximizing the amount he can get. Lucy retired at 65 and has been getting her CPP and OAS for 2 years. Their expectation was to supplement their CPP and OAS payments with some income from their lifetime savings. It broke my heart to see their situation.
Even though they lived a frugal life and saved diligently every month, the investment products they had in their portfolio performed dismally for the last 10 years. They did not have enough for retirement nor to pamper their first grandchild, as they wanted. It is awful to be the bearer of bad news.
Marlene was in her early teens. She and her parents were a typical middle class family. Dad had a blue-collar job; mom was a stay at home homemaker. Marlene’s dream was to become a doctor, to help people get better. With great grades at school and healthy study habits, it was only a matter of time to make her dream come true. However, life had different plans and one day dad did not come back home. His colleagues took him to the hospital but nothing could be done and he passed away. After all the probate and legal expenses, little was left to mom and daughter. They had to change plans drastically to make ends meet. Marlene is now a successful business woman and takes care of her mom. However, it was a very difficult journey.
Both stories are real and happen every day. They are examples of the only financial risk all of us have – lacking money when we need it.
There is no other risk. Everything else is just discomfort. Discomfort with the market’s ups and downs. Discomfort with uncertainty. Discomfort with decisions made with little information. Discomfort with payments that look more like an expense than an investment…
Throughout life there are many moments in which having money is essential. Saving for retirement, buying a house or going to University are well ingrained in peoples’ minds. However, there are many other moments when having enough savings and insurance makes a difference, and it’s often a huge difference.
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Contact Jose Cid at 604 229 2332 or fill the contact form below.