silvergoldmagazine.ca
MONEY MATTERS
SCAM PREVENTION TIPS
YOUR HOME CAN
Why do people get scammed by door-to-door
salespersons? Because they continue to open the door
for them! If you don’t know the person at the other side
of the door, do not open it. Simple as that.
You may now be receiving your credit card or bank
statements online, but studies have recently revealed that
although we’re saving on paper, we’re being scammed
more as people tend to check their bank status less when
it’s online. Check it, or print it out – for safety’s sake!
If your bank phones you, find out what they require
and then politely ask to call them back. This is the only
sure way to ensure they are who they say they are.
Banking email? Ignore it. Banks never (EVER)
email with issues. There’s a link? Ignore it, and
DO NOT click on it. Ever.
When’s the last time you changed your online
passwords? This is not only important for banking but
also for social media sites, email sites, etc. Go ahead,
change them. Need a good password? Don’t select one
from online suggestion sites as they can be traced.
Instead, pick a favourite song and select its first letters,
with amount of words in its title, make every other word
a capital letter + add this year (serves as reminder too).
For example:
“I’ve Got You Under My Skin”
= IgYuMs62015
We Canadians have always believed in the value of owning
our homes. We paid our mortgages, utilities, taxes, and
upgrades, but when did a house ever pay us back?
This is a vital question, as 59% of today’s baby boomers and
seniors declare their two greatest fears are about money and
illness. Other worries pale in comparison, especially since
illness also tends to raise costs, and is a major reason why
some have had to stop for those who have stopped working
sooner than they intended.
Are people afraid they will someday run out of money?
Surveys show that nearly a quarter already believe they’re
out of money. And costs keep rising. If we die it won’t be a
problem but clearly it can get worse the problem rises if we
live to 80, 85, 90 and beyond! Where is the money to help
us keep living?
So we see here how valuable it can be to learn… how a house
can pay us back! Would you like to stay in your home but
also get a regular income from it?
In a discussion website I host, Rob said, “It will certainly
be valuable if people and their families can focus on how
to unlock home equity to sustain life-long income, desired
lifestyle, and eventually the costs of personal care.” Diane
added, “Being house-rich and cash-poor is no way to live a
comfortable retirement.”
Clearly we all want to enjoy a vigorous and sustaining
income – for life. To get such an income, many of us will
need to tap into the value of our homes. How do we do that?
What are the options?
Income strategies:
Good and... not so good
HERLC. Five years ago here in S&G we introduced the
HERLC strategy (Home-Equity Reverse Line of Credit).
We purposely named it to contrast with Reverse Mortgages.
HERLC is gained simply by reaching out to your bank about
a home equity line of credit, and proving how you will use
this to build a strategic income, which can guarantee far
more income than the interest on the line of credit. If your
bank balks at this plan or wants to charge inordinate fees for
setting this up, by all means contact me to speak privately of a
Canada-wide lender who is perhaps the very best in this field.
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