It Strikes Me Funny: “Pssst. Wanna buy a watch?”

Sorry. I’m not selling watches. I’m selling gravy. Really.

A pecuniary thought came to mind after dusting off and posting a column from May, 2003. The column, along with 49 others, appears in a softcover book printed in 2004 or 2005.


Not only is it a brilliant book (How could it not be?), but I have 5 copies left in my closet, and it is the perfect gift for a Christmas stocking, or the perfect size for that wee step (you know, the one the grandkids use) sitting beside your toilet.


About the gravy. I sold the books originally for $14.99 each, paid off the printing costs, then sold others for $10 ea. and enjoyed life - for once, for awhile - on the gravy train.


["Fits perfectly on top of a Sudoku book": photos GH]

Here’s the deal. Want a copy? If local, meet me at The Red Roaster in Wortley Village for the handoff. $10. Includes a coffee and warm hand shake. Or I’ll drop it into a brown paper bag and deliver to your mailbox.

Live far away? Leave a comment. We’ll talk re postage and handling.

***

If you plan to just keep reading my column in The Londoner for free, I tip my hat. That’s what I’m going to do!

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Freedom 75 PT 2: Oh, you can make big bucks on CPP

Hey, I’m back.

(And yes, that was the longest bathroom break on record).

Yesterday I mentioned that there is some good news related to retirements and pensions if you are Canadian.

For example:

“If you stay on the job until 70, payments could be $4,600 a year more (than if you retired at 65), based on maximum CPP benefits.” (Oct. 27, Brantford Expositor)

Goodness gracious. You could barely carry that much extra money around in a wheel barrow.


[“More money. I’ll stop making birdhouses”: photos GH]

I mean, that’s $383 MORE per month or about 13 bucks MORE per day.

I can hear you say, be still my beating heart.

But there’s more good news and you deserve it, especially if you’ve been staring at your computer screen while I’ve been ‘away.’ (That’s as nice as I can put it).

I also read the following in the same news article:

“By age 90, someone who retired at the age of 70 will have collected about $100,000 more from the CPP than someone who retired at 60.” (full article here)


[“I’ll finally be able to afford that boat trip!”]

Let me put that another way so you catch the full impact of the good news.

If you take a late retirement you will be graciously rewarded by the Canadian Government, to the tune of $4,600 MORE per year. That’s every year for the rest of your long and healthy life.

If you live until you’re 90 - and I know you want to - you’ll collect, free of charge (don’t even think about the work you would have to do between the ages of 66 - 70; it will be a cakewalk), another $100,000 to spend in any way that you wish.

Hopping down to the local coffee shop, that will be me!

Yes, I must admit, if you do the math it will be more like $92,000, but let’s not quibble right now. I can almost guarantee you won’t be quibbling if you reach 90.

So, after all the bad news I’ve been sharing recently (e.g., re THRIFT is dead), doesn’t the good news about our CPP make you smile?

It does me, that’s for darn sure.

The sense of optimism associated with the news carries on, I’m sure, when you read about the government’s reasons for suggesting such changes to our pension plan.

For example:

"The government has been tweaking the CPP to ease the burden on the state retirement system as the baby boom generation begins to leave the workforce. Concern is mounting over inadequate personal savings and the potential drag on the economy as new retirees find themselves facing a big drop in spending power.”

See?

The government doesn’t want the pension system to collapse and leave all us old-timers stranded.

The government knows our savings is kaput and wants to help us along. And an extra $100,000 (okay, okay, it’s more like $92,000) - talk about your Golden Handshake, eh, as long as they don’t squeeze your hand too tight.

Plus, the government doesn’t want us to be a drag on the all-important economy, and I know that’s what I’m going to be thinking about when I’m 90. Yes sir.

Nothing but good news here today.

***

More thoughts about Freedom 75 here

And here.

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Freedom 75 PT 1: Oh, you can make big bucks on CPP

Time for a bit of good news, for Pete’s sake.

While passing along the troubling news that retirement ages may be rising on the other side of the Atlantic Ocean, i.e., to age 66 in England, to 67 in France and to 102 on the island of Sardinia (though that may just be an ugly rumour perpetuated by a Sardinian shuffle board player with a snarky attitude), I forgot to mention how lovely and different things are here in Canada, home of 100-proof Maple Syrup and kind-hearted shuffle board squads.


[Meet the Sardinian Shuffle Board Champeens: photo details]

Unlike in England and France (possibly Sardinia, an Italian island that is not only synonymous with taut, tanned bodies and good looks, but also has the world's highest percentage of people who have passed the 100-year-old threshold), where retirement and pension changes are rammed down throats with an iron fist (so it seems to some), in Canada a few nice little changes are being proposed - here and there, perhaps - and citizens are mildly encouraged to consider them when they have a spare moment.

Maybe you’ve heard, if you’ve had the time.

A recent newspaper article, entitled ‘Expert: Avoid CPP shock’ (see how nice we are in Canada; we don’t want anyone to receive a shock) I read the following:

“Upcoming changes to the Canada Pension Plan will have a major influence on what age people retire, with those opting to work longer standing to get significantly more cash.” (Oct. 27, Brantford Expositor)

Now, is “ significantly more cash” not good news?

Sure, there’s this little (bitty) downer:

“The changes will mean anyone who chooses to retire early and begin collecting benefits at 60 will have about $4,000 a year less than if they had retired at 65.”

But, you likely already knew about that mild downer.

However... (here’s where it get so good!)

“If you stay on the job until 70, payments could be $4,600 a year more, based on maximum CPP benefits.”

Good grief. Money will be spilling out of your baggy pants if you only work 5 years longer than you may have originally planned.

Do the math. $4,600 MORE per year is about $383 MORE per month or about 13 bucks MORE per day.

(When I typed 13 bucks I almost wet my pants. I’m not kidding).

Oh sure, you’ll be five years older but don’t think about that. Think about $13, or $12.78 actually, and what it can buy.

Now, I’m not here to tell you how to spend your money or ask you to make a list of all the things you can buy with $12.78.


["Buy batteries for your old radio. Live it up!": photo GH]

I’d rather tell you the best news yet from the same report.

First, I’d better go to the bathroom.

More to follow.

***

Excited yet?

You’re probably wondering why I sat on this news.

More news about THRIFT (not half as good) while you’re waiting.

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Freedom 75: Boomers and mortgages... yuck

(This post will end with a positive recommendation you’ll want to “hope to follow.”)

Freedom 55? Fuggettaboutit.

Freedom 75 will be the new normal one day soon.


["RIP, Freedom 55"]

(England is proposing Freedom 66. France, Freedom 67. Canada is hoping citizens will buy into Freedom 70).

A contributing reason for many aging boomers to stay in the workforce will be the size of their mortgage.

This headline just in:

Boomers see mortgages as part of retirement

WTHeck?

Here’s the jist:

“Roughly half of baby boomers in this country are planning a move, but many of them won’t be able to do it mortgage free as they had hoped. Although the vast majority of boomers say it is important that they pay off their mortgage before they retire, less than half (44%) have been able to do so.” (Oct. 29, London Free Press)

Me? I’m planning a move someday too - to something smaller than 1,000 sq. ft. - but my mortgage is gone, and I’m definitely not planning to get within smelling distance of another one!

And here is some more cheerful news:

Not only are many boomers still carrying a mortgage, but...

“...of those with a mortgage, one-quarter have a long way to go having paid off just 25% - or less - of their mortgage.”

Good grief!

Whatever happened to THRIFT?

***

Recommendation:

Start looking for a small, cozy apartment near a coffee shop, grocery and hardware store.

Think about moving out of your house between the ages of 70 and 75 so that Freedom 75 - at the very least - is possible.

More brilliant thoughts about Freedom 75.

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