Silver and Gold Magazine Summer 2020 | Page 28

NEVER RUN OUT OF MONEY – By Brian Weatherdon, MA, CFP, CLU, CPCA Trudy gifted me with an insight twenty-five years ago and it remains with me. She shared with me that life could extend longer than we ever expected, and money could fail before we’re finished needing it. I’m younger still today than she was when she shared this with me, but her wisdom has been a guide in my path of financial service, to protect people from painful results of outliving their money. In a moment we’ll hear from John who also gifted me in his senior years with precious insight on the value of financial comfort and confidence. My journey in financial service began in 1995, deeply aware that financial losses and related worries had deeply marked the lives of people I cared for. I’ve been guided ever since by a responsibility and passion to ensure people don’t lose or exhaust their money while there are years left to live. In those earlier years I dug for reliable answers. How can we build a financial plan for the life you choose, and never run out of money? My 2013 book “A Lifetime Of Wealth” focused exclusively on this. Silver and Gold readers can download the book freely to find stories fitting to your own situation, and key steps to avoid running out of money. CERTIFIED PLAN = NEVER RUN OUT OF MONEY Did you ever eat a meal where the cook mixed up the salt, sugar, and baking soda? If so, you’ve never forgotten. Similarly we must properly identify and measure your income, spending, various types of debt and assets, changing needs, continuing comforts, and also your future wishes for family estate and charitable gifting. Discussing these areas feed brilliantly into your “silver and gold” lifestyle, to keep life and wealth in balance, to assure you can enjoy every season of life as you choose. + Did you know? click for an interesting tidbit! PEOPLE ASK ABOUT THE HOUSE The house, yours or where parents are still living, is a significant nest egg that can pay you back while living. Earlier seasons of Silver and Gold include articles on supplementing your income through home equity loans, or programs such as Sell ‘n Stay, where you can sell your home securely and privately, while staying living in it for as long as you wish. As well, a home can accent your gifts for family and/or charity after death. To reduce probate, delays, and burdens on your executor one may sell the house while living and enjoy greater benefits for income and family estate. INVESTING FOR LIFE INCOME In the book I shared (HERE), also previous Silver and Gold articles, we’ve shared five keys or mandates to secure life income. It’s a bit like turning your savings into a pension, with similar principles. The first four keys will carefully blend Canadian and Global sources, because it’s far safer (and more generous) as we include high income from beyond Canada. Dividend Income arises from earnings of large, mid-sized, and smaller businesses. None individually are guaranteed, but a dividend fund with sixty to ninety select holdings here and abroad, will reduce risks and support a healthy and growing dividend income. Added to this are tax savings for nonregistered accounts (ie. other than RRSPs, RRIFs). Earnings may fluctuate as with any investment, but a good dividend fund can pay two to four times more than savings accounts and certificates (GICs). Learn more: Dividend Income. Real Estate Income is a second key. Whomever owns the property receives the rent. As owners we want to diversify in and beyond Canada with commercial office, industrial, multi-unit residential, but less retail today given the growth of e-commerce (which fits in key #3). While income may vary at times, the trend is certainly upward and any pension fund worth its salt will own real estate interests: So should we. Learn more: Real Estate Income. Infrastructure Income has the longest name, but very simply, it’s anything that moves people, products, and data or communications. Consider how generous are the earnings – and thus income streams – of our modern railroads, ports, and shipping systems; pipelines and electrical grids; toll highways and bridges; internet and communications networks 28 Read + hear more: www.silvergoldmagazine.ca