Debt, seniors don’t mix
Filed Under Main Content · Tagged: Anne Davies, Bank Of Canada, Boomers, Dividend, Emergencies, Financial Stress, Fixed Income, Interest Payments, Last Resort, Layoffs, Longevity, Market Crashes, Name Of The Game, Newsprint, Parent Families, Planners, Retirement Strategies, Royal Bank Of Canada, Seniors, Separation And Divorce
Financial Post- If your finances are so fragile that you must borrow to stay afloat in old age, you have no business retiring. Better to keep working until you’re debt-free.
This newspaper devotes much newsprint to investing and the name of the game is to be on the receiving end of dividend flow and interest payments, not the one paying out interest. If the latter, you’re vulnerable — to rises in interest rates, layoffs, market crashes or unforeseen emergencies. Those still working have the flexibility to respond to such changes. Once you’re a retiree dependent on a fixed income you are, as the term suggests, in a fix.
Lee Anne Davies, head of Royal Bank of Canada’s retirement strategies, is on record saying that carrying debt in retirement is "not necessarily a bad thing." She argues modern families are more complex than the stable two-parent families Boomers grew up with. Separation and divorce, step-children, his-and-her careers all contribute to the financial stress. Add in greater longevity and it’s clear not all couples will go the distance together in old age.
There may be no other choice for some in this situation, but most planners agree carrying debt should be a last resort…
Don’t let debt ruin your retirement
Filed Under Main Content · Tagged: Anne Davies, Boomers, Complexity, Contrary, Divorce And Remarriage, Financial Planning, Grown Kids, Investment Properties, Mortgage Debt, Parenthood, Parents, Poll, Principal Residence, Quot, Rbc, Retirement Strategies, Vacation Homes
Financial Post- Whatever happened to the old financial planning guideline that debt should be jettisoned before retiring? Lee Anne Davies, head of retirement strategies at RBC, says modern retirement is more complex than the one Boomers’ parents enjoyed. Parenthood may have been delayed, grown kids may not have left the nest and "divorce and remarriage adds complexity."
Contrary to most experts, Davies thinks carrying debt in retirement is "not necessarily a bad thing." According to the RBC poll, 22% had mortgage debt only on a principal residence, while 5% were carrying debt on vacation homes or investment properties…
Don’t let debt ruin your retirement
Who is behind the housing resurge?
Filed Under Main Content · Tagged: Boomers, Commerce Real Estate, Massive Numbers, Profound Effect, Recession
Financial Post- The Boomers, who are still retiring in massive numbers even though the recession has derailed many plans, continue to have a profound effect on all aspects of society and commerce, real estate included.
