# Help me figure out what to do with my money



## Chica (Jan 19, 2016)

Hi there. I'm hoping you guys can give me some good ideas. 

A little background. I'm a 56 year old woman, unemployed, divorced, and my ex is closing in on 6 figure in arrears in support. And yes, I'm registered with family court enforcement and every now and then they garnish wages or his bank account and I get a few hundred dollars. That's not money I'm counting on in other words. Though I'll probably see more coming in if he tries to collect CPP. 

At my age it's very difficult to find work. Prior to divorce I worked with my ex in his renovations business. And I've worked as office clerk, last time I worked full time was 10 years ago. Ageism is alive and well in Canada. It seems whenever I get an interview and the employer sees how old I am, that's the last I hear from them. I've been able to get some work in the past few years, mostly part time contract work, and I just finished a one year maternity leave position, and I'm eligible for EI. 

Mostly I live off my savings, which would be equity in a house my ex and I sold and a small amount as an heir to some GICs and RIFs. I hate using my savings for daily living expenses, and I hate seeing the balance keep going down, but I have no choice because I've been unable to find work and have no income.

I have an inheritance coming in a few weeks, and the executor is holding about $25,000 back until such a time that the CRA has done an assessment and no more taxes or other monies are owing. In total it'll be around $250,000. That's what I'm trying to figure out what I should do with. I have a financial advisor with my credit union, but I just want to have some idea of what to do with the funds before I go in and agree to locking the money in or doing something risky. 

I was in RBC to do banking for my last employer and they had a poster up that said if you invest $100,000 that you could get back $580/month. It might have been a GIC, I didn't really pay much attention. I'm looking for something like this. If I invested $200,000 and got a monthly payout I could live off, until such a time as my might find a job, that is something I'd be interested in. Live off my interest instead of going into the principal. As much as I'd like to invest the money in stocks I'd like to come up with something less risky. And as much as I'd like to buy a house, I hate to spend all my money and still worry about paying bills. In other words, what suggestions to invest the money and get a monthly payout. Is that a GIC or another product?

I have about $60,000 in a LIF mutual fund. When I turn 65 I'll be able to withdraw around $3800/year, though I'm foggy if that's one yearly lump sum or if it'll be spread out monthly. And because its mutual funds that amount could go up or down. So far its gone up about $12,000 in the past 7 years. And its locked in because it was a payout from a former employer where I contributed to a pension. That's it for retirement savings. No company pension to look forward to.

Right now my biggest concern is funding my daily living expenses. Any suggestions on how I should proceed? Thanks!


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## redsgomarching (Mar 6, 2016)

Wow, you certainly have been through a lot. 

Honestly, the 250k will be a nice cushion for you but will definitely need to be utilized nicely to help you out. I know you want to get back to work, it definitely is hard, but this can be a great time for you to learn about investing further so you can learn about yourself and maximize what is best for you. I can tell you right now those people at the bank won't be the best help to you. 

Furthermore, I definitely think we need more information to proceed. 
1. Current networth (savings, assets, other retirement plans, do you own a home?)
2. expenses - (mortgage payments, kids, what are your biggest expenses)
3. will reiterate on the house.

this can help us get a more clear picture to help you out.


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## OnlyMyOpinion (Sep 1, 2013)

Just a few thoughts as they occurred reading your post:

What you saw in RBC ($580/mo on a $100k investment) represents a 7% return, so I suspect it was advertising a market-linked GIC. These are low rate GIC's with upside linked to how the stock market does. They are NOT recommended because they are designed to benefit the bank, not the buyer. The guaranteed return might be 0.5% - it won't be 7%. 

Investing $200k in a GIC you would be lucky to earn 2% ($4,000/yr, $333/mo before tax) and your money is locked up for the term (1 to 5 years) so it would not provide a regular income.

Your LIF will have a provincially-regulated minimum and maximum withdrawl rate (likely ~ 4%min to 7.4% max at 65).You should be able to start it at age 60 as well (about 3.3%min to 6.8%max). You should be able to instruct the institution whether you want it monthly, annually, quarterly, etc.

I wouldn't suggest buying a house - it sounds like you are renting now? Continue to rent, you want your savings generating income, not tied up in a house.

You should try to hold off taking any CPP until 65 if you can because it will ensure a larger, indexed lifetime amount.

As to what to invest your pending $200K in to provide income, that needs more consideration, especially if you are reluctant to invest in stocks. If that wasn't an issue, a dividend etf like XDV could be considered. It pays monthly and its 3.65% would pay $608/mo on a $200k purchase. 

You are a bit young, for optimal annuity rates, but that could be an option, a single 60 yr old female with no guarantee could get just over $800/month with a $200k purchase. 

...


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## GreatLaker (Mar 23, 2014)

Welcome to Canadian Money Forum.

It sounds like you should start with the basics of what your expenses are, what your total savings and investments are, and what government benefits (CPP/OAS/GIS) you might be entitled to.

Finiki, the Canadian Financial Wiki is a great Canadian resource for finances and investments. Here are some links you should start with.
http://www.finiki.org/wiki/Getting_started
http://www.finiki.org/wiki/Budgeting
http://www.finiki.org/wiki/Creating_a_financial_plan
http://www.finiki.org/wiki/Government_retirement_benefits
http://www.finiki.org/wiki/Asset_class

Finances and investing have a lot of emotions and uncertainty in them. You need discipline to succeed. Big banks and credit unions like to sell products that make them money, and that have built in fees that lower investors returns. If you learn to invest on your own you may be able to do better, but it takes knowledge and commitment to learn. GICs are guaranteed but have low returns. Equities can have better returns but fluctuate more. All but the most conservative investors usually do the best with a mix of different types of investments.

If you read the above links and come back with questions we'll try to help.


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## mordko (Jan 23, 2016)

- Don't touch anything you see on a poster. Some of the marketing ploys today are shameless; you cannot be too careful. Educate yourself first so that you can make an informed decision. 

- This is a good little book for a Canadian trying to decide what to do with the money: https://www.amazon.ca/Value-Simple-Practical-Complexity-Investing/dp/0987818910. There is a lot of handholding - not a bad thing - and the information is current. Read it before you do anything; won't take very long. 

- GreatLaker's links are also well worth a read.


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## Chica (Jan 19, 2016)

Hi everyone. Thanks for taking the time with the answers. 

I used to have an independent financial advisor. She moved to Mexico about 4 years ago, and closed down, she was a one woman office.

The financial planner at the credit union took over my life insurance policy the above financial advisor signed me up to 10 years ago. Its contract ends in June, so assuming he will call me to renew and I could discuss any possible investments with him then, though I'm not stuck on the idea of exclusively using a credit union financial advisor because I see the conflict. I worked at a credit union for 9 years so I get that. I currently have $500,000 life insurance but now that I'm single and no mortgage for a dependent to deal with, he suggested I drop it to $100,000 and stay with the same company so I don't have to go through another medical. Not that I have any health issues. I've also dealt with other staff at the credit union. I did have a GIC which served its purpose for a couple of years, but one of the staff suggested putting it into my TFSA instead as it would be better for my needs. 

I don't think I'll be looking at a GIC again. Nor would I consider doing business with RBC. My last mortgage was with them, but I've never had any savings accounts with them. I do have a Visa with them, they talked me into it after taking out the mortgage. It has $23,000 limit. I use it from time to time for small Internet purchases just to keep it active. Never know when I might need it.

Net worth isn't too high. Including that $60,000 LIF previously mentioned, I'm around $100,000. That will obviously go up in a few weeks when the inheritance is paid. No mortgage, no loans, no other debt.

I don't own a house and haven't been lucky in real estate, so owning again isn't a huge priority. I live in the Vancouver area, the country's worst real estate market, both for buying and renting. Very high prices for both. I'm lucky to find my current rental 2 years ago a second home on a small acreage. It's $300 a month cheaper from my last place, and here the utilities are included, so I save about $500 to $600/month from my previous place. So yes, my housing at $900/month is my biggest expense. I live as frugally as I can, but with insurance, car expenses, and groceries, it still adds up. No kids, but I do have pets, from when my ex and I were still together.

I'm not against investing in stocks, just nervous if something goes wrong that worsens my living expenses, but I definitely will consider putting some money into stocks.

As for the CPP, I have been considering taking it at 60 if I'm still not employed or working part time. Though I see the advantages of waiting till 65 if I'm not struggling financially.

I know I've been through a lot, but I keep trying. I'm not only supporting me but my 4 legged babies and am desperate to find work. I had a job interview on Monday close to home that I was hopeful about, but got an email later this afternoon they hired someone else. It's not that I wasn't qualified. Mainly it was stuffing samples into envelopes and sticking labels on them. But like I said, once they see I'm not in my 20s or 30s, it's tough to get past the ageism thing. 

Thanks for the links. I'll check everything out. I've read a lot of David Bach's books. I get what I have to do, I want to make smart investments, but I also don't want to be scared I can't pay my bills.


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## GreatLaker (Mar 23, 2014)

Do you need life insurance? If you don't have kids or other dependents you should think seriously about dropping your life insurance policy. It is profitable for insurance companies and pays good commissions to advisers and sales reps so they tend to push it even when it is not necessary.

Gail Vaz Oxlade has good resources for building a budget. It's fundamentally more important than an investment plan. Once you know your expenses and how much income your assets are likely to produce you can assess the urgency of continuing to work and what type of investments will suit your need and risk tolernace.
http://www.gailvazoxlade.com/resources/guide_to_building_budget.html
http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html

You should definitely start a TFSA if you don't already have one. It's just a container that can hold lots of different investments including GICs, stocks, bonds, mutual funds and even cash savings accounts. Any income earned inside a TFSA is completely tax free when you withdraw it.

People need to get a big picture of their finances, like the links in my first post before giving investment suggestions, but since you have read David Bach books, Canadian Couch Potato has good, simple, low-cost portfolios. 
http://canadiancouchpotato.com/model-portfolios-2/


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## mordko (Jan 23, 2016)

- You are correct to be risk averse. There are risks in any path you take, including risks of "not investing enough" or investing in a "guaranteed" product. The best answer to risk is diversification.

- The best person to decide what should be done with your money is you, after you educate yourself. If you need a financial advisor to help with your education, use a "for fee" advisor rather than ones who make money from the products they sell. Moneysense has a list of recommended advisors. 

- With regards to CPP timing, RIF and other similar pension related decision making issues, this is a good source: https://www.amazon.ca/Pension-Puzzle-Complete-Government-Benefits/dp/0470839538

Understand that a bunch of references isn't what you are looking for, but you won't get actionable directions in a chatroom, at least nothing worth following. There is no way around educating yourself.


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## CalgaryPotato (Mar 7, 2015)

$250K is a nice inheritance. But the fact is it won't last long unless you can figure out how to get positive cash flow. Ideally you should try to leave all of that money untouched, so that it can grow a bit and when you are ready to retire, you can draw off of it. I'm guessing given your work history that you won't get anywhere near full CPP, so this will help keep you from having to scrape by.

As for the cash flow, you need to figure out a form of income. I think you need to evaluate what you do well, and see if there is a reasonable way to make good money at it. If that doesn't work you need to fall back on something a little more basic, like a retail job, a fast food job, a cleaning job. Not glamorous by any means, but you've got to have something. 

56 isn't really that old, I'm wondering if a little bit of a makeover would help, because if you're walking into places and they are thinking that you are super old, part of that may be the way you are presenting yourself.


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## Mukhang pera (Feb 26, 2016)

Chica said:


> A little background. I'm a 56 year old woman, unemployed, divorced, and my ex is closing in on 6 figure in arrears in support. And yes, I'm registered with family court enforcement and every now and then they garnish wages or his bank account and I get a few hundred dollars. That's not money I'm counting on in other words. Though I'll probably see more coming in if he tries to collect CPP.


A 6-figure debt might be worth a look at pursuing more diligently. FMEP is not the most effective tool.

What are the circumstances of your ex, do you know? Income, assets, prospects for inheritance, etc. It sounds like what you are getting through FMEP is not even covering interest on the corpus of the debt.

I agree with GreatLaker that even $100k in life insurance seems like a waste unless there's some untold story here.


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## Oldroe (Sep 18, 2009)

I know its gruesome to think about. If everybody in your family lives to 99 and good health you need to consider that.


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## Chica (Jan 19, 2016)

Thanks for all the responses.

Yes, I'm aware that in this part of the world $250k really isn't all that much and won't last long. Ideally I would like to leave it alone until I'm 65 or 70, but unless I find work, I'll have to use it for my living expenses.

I've thought about not renewing the life insurance. It's payable to my estate and its to be used to take care of my dogs if I should pass away first. It's hard to find people willing to take on senior dogs so that's how I've been thinking. Though I suppose there will be enough money in my estate to pay someone to care for them should something unexpected happen to me.

I've applied for minimum wage jobs too and those I never even get a call for an interview on. 3 years ago I went into a Work BC office and they had me change my resume so it doesn't show how old I am, just going back 3 employers and I leave out any mention of school. The problem is finding a job that's just not a short term contract position. I've always looked younger than I am thanks to youthful Scottish genes and leading an active, no substance addiction lifestyle. I see people who are 10 or 15 years younger than me who look older than me. I color my hair, have recently grown out my hair to a different style, and wear casual clothes like capris and walking shorts with a polo shirt or jeans and sweaters when its cold. It's not like I'm dressing in stockings and granny skirts! I still look in my 40s but even that old is the kiss of death. Employers think young staff is the way to go, but the younger crowd are more likely to look for other jobs as they look for better opportunities and higher wages. The stigma with older people is they might need time off due to illness related to aging. I worked for a credit union that rarely hired anyone over 30. Older staff had been there many years, 20 or more, sticking around because job prospects are slim elsewhere.

My ex is hiding in a foreign country to avoid paying support, you need to cross an ocean to get there. Fortunately this country has a reciprocal agreement with Canada for support enforcement but they suck at it. FMEP can't do much about someone who's fled the country, but they've placed garnishes on government funds so hopefully he'll try to collect CPP one day. And his passport has been cancelled, not renewable until he's caught up on the arrears. Hope he likes it there.

I really appreciate all the resources everyone is putting links to. It's giving me lots of information and I do plan to get a financial planner not associated with a financial institution.


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## Oldroe (Sep 18, 2009)

Again no mention of your health. Paying insurance for pets that you are likely to out live by a wide margin.


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## james4beach (Nov 15, 2012)

Chica said:


> In total it'll be around $250,000. That's what I'm trying to figure out what I should do with. I have a financial advisor with my credit union, but I just want to have some idea of what to do with the funds before I go in and agree to locking the money in or doing something risky.
> 
> I was in RBC to do banking for my last employer and they had a poster up that said if you invest $100,000 that you could get back $580/month. It might have been a GIC, I didn't really pay much attention. I'm looking for something like this. If I invested $200,000 and got a monthly payout I could live off, until such a time as my might find a job, that is something I'd be interested in.


I recommend starting off very cautiously with this. I have seen some of this advertising from the banks (I think I've seen that exact RBC one) and the math they're using can be very tricky and deceptive. Here's how the math works: given an amount of capital, you can make it "produce" any arbitrary number of dollars per month. The bigger question are, how long will it last, and how risky is it? Those are not easy questions to answer... and the sales and marketing people are very tricky trying to sell you on these products. Their goal is to sell you the thing, not make sure you understand how it works.

Don't rush into ANY investment like this. With 250k new money, I would start off very very cautiously until you learn more. I would keep it entirely in cash, savings account and "plain GIC" (such as a 1 or 2 year term that pays some interest, not a market-linked GIC and nothing fancy or exotic sounding).

You might have to split your 250k into three piles so that each can fit under the 100k CDIC insurance limit. Stick only to the big banks (TD, RBC, BMO, CIBC, Scotia) or their low fee branded accounts (Tangerine is Scotiabank, PC Financial is CIBC).

The goal would be to store the cash while you learn about your options, to make sure you are not rushed into anything. Opening new bank accounts is relatively easy, and you'll have to open some additional account because it's not wise to store 250k cash all at RBC. (This is over the 100k CDIC insurance limit).


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## james4beach (Nov 15, 2012)

mordko said:


> - You are correct to be risk averse. There are risks in any path you take, including risks of "not investing enough" or investing in a "guaranteed" product. The best answer to risk is diversification.
> 
> - The best person to decide what should be done with your money is you, after you educate yourself. If you need a financial advisor to help with your education, use a "for fee" advisor rather than ones who make money from the products they sell. Moneysense has a list of recommended advisors.
> 
> ...


I second what mordko says, and I'll repeat his warning about anything you see advertised on a poster. The banks and mutual fund companies have come up with thousands of "products" and very few of them are good deals. Most are rip-offs, and some of them are downright dangerous.

Continue being risk averse, it is good.

Here's one tip. Every time you hear about a type of investment, product or account, ask "what are the negatives, or risks of this?". This will help you get a more complete picture of your options. And anyone who can't answer your questions about the risks is not someone that's worth talking to.


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## TomB16 (Jun 8, 2014)

Hi Chica.

Great screen name.

Providing specific advice to someone on the Internet is never a good idea because it is based on the ridiculous idea that you can understand someone’s needs in a few paragraphs. However, having a flair for the ridiculous, here’s what I would do, were I in your shoes.


* Become self sufficient

You’re going to have to hustle. Take charge of your world and don’t let anyone pat you on the head and tell you that you can’t do it. I have literally never met anyone who was hard working and energetic who did not succeed. Enjoy the adventure.

Instead of looking for someone to handle your money, start reading and learn how to handle it yourself. Don’t listen to those who will tell you it’s too difficult. We are all doing it. You need to get your finances in order and having someone else do it for you only adds overhead and provides an opportunity to be a victim. Having said that, don’t get a big wad of money and start gambling it on schemes you don’t understand. Read. Learn. Project different ideas using spreadsheets. Be cautious but embrace the idea that life has risk and you will never totally avoid a little risk.

Contract and temporary work has it’s advantages. Now that I’m contracting, I enjoy meeting new people and being exposed to new environments. It’s interesting how similar they all are and yet each environment brings a unique flavor and the opportunity to make new friends. I wish I had switched to contracting much earlier.

Start a side business. A friend of mine house/dog sits for people. She charges $45 per day to live in someone’s house and take care of their dog while they are on vacation. She charges more for multiple dogs but I don’t know the rate scale. Like you, she is unmarried with no children so she has the opportunity of not being tied to her apartment. She also has a job so she uses the side money for her passion which is to go to live music events. A couple of house sitting gigs per month lets her drive to Calgary, Edmonton, or Winnipeg and see a couple of headline concerts (we're in Regina).

Someone else I know started a grief counseling business for pet loss. Being a guy with limited ability for emotion, I'm pleasantly surprised that she is doing well. She has some brochures that she gives to the local veterinarians. We got a brochure when our dog passed. As far as I know, no accreditation is required for this particular niche.

My neighbour in her 70s still has a cleaning business. She has no need of the money but she enjoys the daily contact with people. These days, she doesn’t do any of the actual cleaning herself but she drives around and keeps an eye on things. I have no idea how lucrative this is. If this interests you, PM me. I'm a landlord with quite a few units so I can tell you quite a bit about contract cleaning and how to set it up.

A friend of my parents bakes bread. I’m not kidding. She sells at the farmer’s market and she will drop off any order of more than four loaves. They go for 6 bucks per loaf. I don’t know how much money she makes but she drives a Nissan Altima that is only a couple of months old and she takes warm weather vacations in winter. Apparently, her husband lost his farm, they split up, and she’s been on her own for the last 10 years. She is in her late 60s.


* Being older and well presented is an advantage in many cases

Try to fit yourself into positions where it is an advantage to be well presented. Who would you want to house sit for you: A 25 year old with a sleeve tattoo or a well presented woman of middle age?

If you could find a side business with the potential to grow into a primary source of income, you could set yourself up for 20 years.

Being well presented is a requirement in any sort of job that involves sales. Real estate. Mortgage brokerage. Etc. Both of these ideas require money and training to get into so you would need to be confident you want to do either of these vocations, before heading down either of these paths.

Offer to help people with trade show presentations. This won’t pay particularly well but it will have a ton of opportunities. You learn someone’s product, evangalize it at a trade show, and make a couple of hundred over a weekend. Trade shows have many micro scale businesses that need extra hands and often there are opportunities to represent a product locally or front-end a trade show entirely on your own for a small timer that doesn’t have much resource. I’ve met some folks who work for a guy who brings in chinese crap and they go from town to town, hocking his wares. This will not be a good primary income initially but it will get you involved with a community that lives without employment. You would want to cut ties with other businesses and go on your own ASAP.

If any of these ideas sound interesting, it may be worth exploring. Most of these ideas are a free Kijiji post away from reality. Find something that makes you happy because that is the most important thing of all.


* Consider doing your own investing

Many folks I know are hessitant to do their own. Even if they are doing something that is losing money, they want to be part of a group.

There are no groups in finance. There are those who make money and those who give their money to those who make it. Forget about being part of a group.

Try to organize your income as dividend income, if possible. It is taxed the lowest.

Find some good businesses that you believe in and consider investing in them. Of course, not until you have a decent understanding of investing, have researched the companies well, and find yourself wanting to own these companies and pin your future to theirs.

Even if all you did was invest in a small basket of REITs, you could easily turn $200K into $1300/mo of income. Your principle would be volatile but a good REIT will appreciate over time.


I hope this point of view was helpful, even if only to stimulate other ideas. Consider hanging around this site. There are some extremely smart people here with a wealth of knowledge. At 56, the best part of your life could easily be ahead of you. These folks can help.


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## twowheeled (Jan 15, 2011)

first off don't let anyone tell you that 250k is a small amount of money. It is a lot of money to invest and if you don't take steps to protect it, yes it can be spent quickly. Made to work for you and it will grow and grow. 

I will echo the sentiment here that you need to find income or cut down your living expenses. Perhaps you have to relocate, or get a roommate, whatever the case may be. Don't adopt a negative outlook. Consider investing in yourself by enrolling in a short program or course that will allow you to be hired. Look for vacancies in the job market and where the demand is.


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## redsgomarching (Mar 6, 2016)

TomB16 said:


> Hi Chica.
> 
> Great screen name.
> 
> ...


wow this was a great post filled with great advice and a very nice sentiment and I agree, especially with your post regarding you look youthful - if you feel youthful as well, i know it seems intimidating, but you could honestly hit a few runs with this. 

a few other things regarding your nest egg in total, you have 60k in a LIF - you could keep this in equities as this would represent only 15% of your portfolio and can give you some sheltered growth.

I like james' idea of spreading out the funds between banks, you could effectively take advantage of High interest savings at tangering/pcfinancial to get between 2-3% per year, on 350k thats almost $700 per month, or you can do a GIC ladder with the 300k and leave 50k in a HISA and use that to live off of until you either find a job or reach the age to receive CPP and you even have the option of receiving it early. which means the 50k can fully fund you for the next 4 years.

Your position is definitely tough but don't underestimate what you have or your potential. Have you thought about moving to a cheaper place?? in a different province??


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## TomB16 (Jun 8, 2014)

redsgomarching said:


> Your position is definitely tough but don't underestimate what you have or your potential.


She is a 56 year old woman in good health (based on her active lifestyle) with a net worth of $350K. I think she's in pretty good shape.

It will take work and she may have some tough times but she should be able to structure her life in a way that allows her some freedom and happiness.


Chika, throw out that life insurance. If it has a surrender value, consider cashing it in. Who are you insuring? Who will get the money? You aren't in a strong position of doing a lot of philanthropy, unless it is really important to you.

Disconnect most or all of your other insurance, too. Consider each piece of insurance very carefully. If you're not positive you need it, you probably don't. Insurance like credit card insurance... cancel that crap. They sell you insurance that will cover interest payments for an event such as unemployment but when you unravel it, they are literally getting you to pay for their liability. If you lose your job and can't pay your balance, you will get into trouble and eventually go bankrupt. If you go BK, they will not get their money. This way, you are taking on that liability, instead of them. You make the payments. They make *interest only* payments, if you lose your job. Even then, there will be a ton of paperwork to do. When you get working again, your balance is waiting for you to repay. If you didn't have the insurance, you would be starting from $0 again, instead of having the liability. It's a great deal, for them. Their liability is already baked into the 21% interest rate they charge on credit cards so, with insurance, the liability is covered twice. Keep an emergency fund, if you can, and live within your means. Flying with out a net requires you to be responsible.

Bank charges are murder. Turn off as many of them as you can. That includes "banking plans". I pay about $4.50 per month by simply living off my credit card and incurring the withdrawal fees to pay my CC and the occasional withdrawal of cash. Bank fees are a parasitic loss. Minimize them.

With regards to investing, think about this:

That person at the CU is working in a nice building (I used to work in the CU system so I’m familiar with BC CUs... most of them are doing extremely well, except Van City which is doing phenomenolly). They don’t work out of the back of a bus.

The CU person has a scripted recommendation for funds administered by a related company. Those funds will hold a basket of bonds, other mutual funds, and/or equities.

Think about it.... who is paying for the overhead at the CU, the fund the CU is selling, and the bonds and funds which are the actual holdings a couple of layers below the retail level? They all have nice buildings. In most cases, some of the most expensive real estate in their area. They all have staff. Their executives make tasty bonuses. Where does that money come from? It comes from you. You could look at the fund, buy the components, and cut out a lot of front-end overhead.

... but don’t do that, yet. Start learning. Start reading. Figure out a strategy and become confident with it before you subject your nest egg to it.

In the mean time, there’s nothing wrong with GICs. It’s not that they are a good investment. They aren’t. ... but they are a handy place to lock up your cash while you build up your investment chops. It wouldn’t be out of line to give yourself 6 or 12 months before brinigng your money online.

Remember, with less overhead, you can make some mistakes and still do well. Just don’t get caught up in the markets as a casino. They will strip you of your cash. ** The markets are a place for you to buy a piece of a business you want to partner with and that with whom you are happy sharing a common financial outcome. That is all. Stay away from all of the fancy stuff like options. It will strip you of your wealth. You should be making almost no trades. Buy and hold.

With a net worth of $350K CDN, you could buy a basket of REITs with a blended distribution rate of 8% and live near the beach in Mexico with over $2K CDN per month coming in. That is easily doable, from what I can tell. There are people doing it on considerably less. My wife and I are just at the point of exploring spending our winters in Mexico. Others here are doing it right now. You could be there, right now. You have the ideal screen name for it.

By the time you’re 65, that $350K should be over $700K of net worth and you will have a nice retirement.

Keep in mind, at 7%, money doubles every 10 years. It is generally considered that cash loses half it’s value each decade so inflation is right around 7%. Disregard the numbers published by the government. They take 100+ index points, every one of which has gone up 7~15%, and come up with 2.1% inflation. It’s balogna. 

You need to grow your wealth at 7% to break even. It’s not that hard to do, IMO.

In fact, disregard almost everything you read. Disregard Internet hot tips. Disregard published news.

In order to succeed at investing, you will have to aggregate information internally and be able to distingush the information needles in the haystack of deliberate misinformation. It’s actually not that hard. It can be fun. It is certainly addicting. You will feel powerful. You will be in charge of your future.

You are going to do well. I hope you hang out. I look forward to watching you succeed.


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## Chica (Jan 19, 2016)

TomB, thank you for taking the time to write out such a thoughtful post. I hope that others find it helpful too. 

Becoming self sufficient is something I've struggled my entire life to do!

I want to handle my own money. And recognize I need to take advice from those who are more experienced. I'm not the type of person to get sucked into schemes. My ex was financially irresponsible and signed up to just about every MLM scam out there. That's not me. The closest I get to thinking about making an unwise gamble is buying a racehorse. I know it sounds weird, and I know the cheapest part is buying the horse. Training fees are high and there's no guarantee the horse will make enough money to cover its monthly expenses. I know all this and still I don't know why I keep thinking about it. That's about the closest I'd get to doing something stupid with my money. 

I still have a little work lined up with the company I was just covering a maternity leave position for. Helping out with anticipated extra workload 4 hours tomorrow and 4 hours on Monday. And an 8 hour shift later in May. Cash. I already talked to my accountant, so I'll keep track and give her the total next year.

I write, but I don't make a lot of money at it. Not enough to make a living at.

I have done house sitting and pet sitting in the past, word of mouth. I've put ads up in Craigslist over the years without success. Maybe Kijiji is the way to go, but I'm going to put the ads up again, as well as put up another ad for office work.

As for cleaning business, I hate to say I'm not so good a diligent housekeeper. My kitchen is cleaned daily with everything put away and everything else gets cleaned once a week or so. I'm not sure how that would work out. 

I've actually thought about selling my baking, I'm more of a cookies and muffins baker, though I've baked bread a few times. There's a flea market nearby on Sundays and indoor tables are $35. That's a whole lot cheaper than farmer's markets in this area. The closest farmer's market wants vendors to prepay for 26 days (Sundays) at $600. Well how do you know your product is even going to sell. There's a few craft fairs around that allow vendors with baked goods, but not duplication. In other words if someone has a table to sell cookies, no one else can sell cookies. Tough crowd. The flea market is a long day. It opens at 6am and closes at 4pm, and vendors would have to be set up by 6. Those are definitely things I've been thinking about. Markets might not be the way to go. Maybe its handing out fliers to businesses and leaving on bulletin boards and baking on request. Its definitely something I'm interested in. 

So yes, all things to think about. Maybe I don't need one job, but I can do several types of contract self employment type work.

Thank you for saying that about the REITs. David Bach recommends them, but every financial advisor I've talked to about investing in them has steered me away. I guess they had different agendas. 

And to answer Twowheeled, yes I've thought about relocating. Specifically Nova Scotia for a lower cost of living but its such a huge move and the winters there are so much more harsh than what I'm used to. I live in a small space that's not suitable for a roommate. There's one big bedroom that has the most of the contents of a 3 bedroom house stored in there. My couch, bed, one dresser, a chair and a table for the TV are all I have out.

I've had an account at Tangerine for years, but only keep a small amount in savings there. I also have mutual funds. They used to call them Streetwise when it was ING, but changed the name. I haven't really thought about replenishing Tangerine, but its not out of the question.

Thanks again to everyone for helping me through this. I really appreciate it.


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## Chica (Jan 19, 2016)

TomB, I just saw your other post. Yes, I walk dogs daily, ride bike depending on weather, and am in a hiking group. And swim when I can, so I stay pretty active. And in reasonably good health. No history of cancer in the family or any other genetic type disease. I'm rarely sick. My mother lived to 82. My father to 84. I'll probably outlive them.

Yes, you're right. I should ditch the insurance. I do have balance protection on the one credit card I use. I took it a few years ago when they sent a new card and bugged me to sign up. I wasn't sure that contract was going to get renewed, and I was right. They paid well over the minimum. I had about $3000 on the card at the time and they paid around $200/month for 12 months. And then they did a lump payment of a few hundred bucks at the end of the year. That's not really the issue here, just saying they pretty much paid off that $3000 over the course of the year.

No bank fees. My credit union is free chequeing and debit. 

And I get you on the credit union. I worked for one nearly 10 years before getting laid off. They all have nice jobs.The executives get huge bonuses. And some drive company cars. I closed my account after they laid me off about 10 years ago. No loyalty from me.

Mexico would be nice, but I've been thinking more about Belize. The northern part of the country near Mexico. I speak some Spanish so I'm comfortable in that part of the world. I hope you and your wife enjoy it.

As for Chica, that's my dog's name and all I could come up with for a screen name. Lame. And I didn't name her. That was the previous owner who couldn't keep her.

Your advice has been very helpful and encouraging. Thank you.


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## TomB19 (Sep 24, 2015)

If you worked at a cu then you know that "investment advisor" (misspelled with an "o" so they avoid having to advocate for the client) is someone with a highschool diploma and, in a few cases will also have a degree that isn't relevant. This person will be taught a script that advises people to buy their funds.

I recall when they were pushing "ethical funds". It was gluten free, horrible performing, rubbish that had some pretty obscure holdings in the mix. I wonder if those funds are still around.

Everyone advised by that advisor will be given the same scripted advice.

These aren't investors. They are sales people. They aren't trained to invest. They are trained to sell.

Consider your possibilities before committing your nest egg.


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## Oldroe (Sep 18, 2009)

I grew up in a horse racing family.

You don't have enough money for that game.

And it needs to 1% of your investment. 

The easiest way to make a million racing horses is start with 2 million.

You need to start at the very basic's. How much are you spending where. "That's a journal"

You need to know your assets.

You need to know how much money your investments need to make for a comfortable life style now..

You need new sources of income about every 10 years to keep inflation away.


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## redsgomarching (Mar 6, 2016)

Chica, can you drive? is uber in BC? jsut become a uber driver and make $$$$


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## humble_pie (Jun 7, 2009)

good takeaways posted by others:

- drop all the insurance
- pay attention to how to budget thrifty
- study finance & investing
- start a TFSA with the emergency funds, then max the TFSA as growing financial knowledge permits wise investment choices

more takeaways:

- Chica's situation looks good to me. With $350,000, good health & plenty of pluck, this scottish lady's retirement profile is probably better than the national average in canada!

- chica appears to have an excellent work ethic. She sounds like a treasure. We read that some employers in fact favour older workers because they are so reliable, responsible & knowledgeable. Keep the faith, sooner or later you will find these employers.

in the meantime, perhaps you're missing out on some needed short-term jobs because you appear to be over-qualified? for some reason, this can be a no-no. Might it be a good idea to keep a dumbed-down resume for the humdrum jobs.

a pet-walking or pet-sitting business on the side? tomB has details. Sounds like a great idea.

then there's the acreage. You've mentioned that your rented home sits on "an acreage." Could you grow vegetables? save on the grocery bill?

plus the million dollar question, Does the zoning allow hens? Since you like pets, perhaps if the zoning allows you might consider keeping a few hens & idk, _maybe sell or barter the eggs._

best wishes for a prosperous future. 

.


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## Oldroe (Sep 18, 2009)

Well I've been playing with sprouting and going to get into micro greens. I'm just for fun.

Have been asked 10 times to grow for people and business. Restaurant's extremely interested. And it's ridiculously easy.


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