Many Canadians have pension plans however that number is decreasing rapidly. Another opportunity for those who don’t is a guaranteed withdrawal benefit plan (GMWB).
When you invest in GMWB, you are guaranteed to receive a predictable annual income, starting as early as age 55 (depending on your plan). This guaranteed retirement income will continue for as long as you live. It is always protected from market downturns and it will continue even if the value of your investment goes to zero.
Life time annuity investments
Lifetime Income Annuities: The Instant Pension Plan
After decades of hard work and diligent savings, you’ve amassed a tidy nest egg and are ready to retire. The challenge you now face is the need to make your nest egg last as long as you do. If outliving your money is your greatest financial fear, the lifetime income annuity may be just what you need.
Lifetime annuities, also known as immediate annuities, begin with a simple proposition. The investor contributes a lump sum amount of money in exchange for a guaranteed payout for life. At its most basic, that’s the story in a nutshell.
No retirement plan is complete without considering the emerging need for health care and long-term care.
There is a real chance that at some point in your life you may need to receive special medical care in your home or enter a long term care facility.
For most of us, we do not want to burden our loved ones with the task of providing constant care, thus, we may look to professional assistance for support.
Long term care assistance does not come cheap, and depending on the level of care you may want or need, the cost may not be paid for by the Ontario government health plan. As such, it’s important to consider an insurance plan that will provide financial aid- this is known as Long Term Care Insurance.
Long Term care insurance kicks in if you are unable to perform 2 or more regular activities of daily living (such as toileting, transferring, continence, dressing, bathing, eating) or you are cognitively impaired (i.e. Alzheimer’s disease), the insurance company will provide financial assistance and may Include:
- nursing care
- rehabilitation and therapy
- personal care (help with activities of daily living like dressing, eating and bathing)
- homemaking services (meal preparation, cleaning, laundry)
- supervision by another person
Suddenly Single Strategies
You may have been recently widowed or be in the midst of a divorce. The worry of what you don’t know or are prepared for suddenly becomes your constant companion.
There are points in life where everything changes. You suddenly have responsibility for issues you never had to deal with and no idea where to turn. The basic caveat is to make no quick decisions! There is very rarely a need to do something immediately. This gives you time to slow the process down and to resist possible requests that are not in your best interest. You must get the information you need to be in control of your financial life.
One of the best ways to avoid this situation is to make sure that you are involved with your family’s finances. If you don’t know where to get simple, easy to understand information you can take a course about personal finance or join a group such as Savvy Sense, financial education for savvy women! www.savvysense.ca