March 2026 NEWSLETTER Click on the cover page to open our spring newsletter with your web browser or download the newsletter in PDF format below!

By: Michael Kulbak September 15, 2025 09:24 skynesher/iStock Mirror wills are a common phenomenon across Canada. Couples sign these nearly identical estate documents, leaving everything to one another. After the death of the surviving spouse, assets go to the children and/or other agreed-upon beneficiaries. Most couples believe they are being responsible when they sign these. It’s a simple approach that checks a bothersome item off of their to-do list, opting for the simplest solution without fully considering the potential consequences. But while mirror wills are often the easiest planning approach, they’re not always the best. They create an illusion of certainty without any of the enforceable protections you’d get from individual wills, trusts or properly structured beneficiary provisions. Advisors should watch for these. Things can get messy if a surviving spouse remarries, enters into a common-law relationship, falls victim to undue influence or a romance scam or changes their intentions. The risk is real: mirror wills can lead to unintended disinheritance, tax inefficiencies and tense family conflict. For example Jake and Suzy (not their real names) have been together and married for over 18 years. It’s a second marriage for both. They signed and executed mirror wills together. Each left their entire estate to the other with the provision that upon the death of the surviving spouse, the estate would be passed on to their three children. Jake has two children from a previous marriage; Suzy has one child from a previous marriage. Jake died and left the matrimonial home, RRIFs and non-registered joint investment accounts to Suzy. All these assets passed outside the estate. After Jake’s death, Suzy established a common-law relationship with Martin. He moved into the matrimonial home. Eventually, Suzy revised her will and left all of the estate to Martin and her child. Jake’s children were disinherited. The risks of mirror wills Jake and Suzy’s case illustrates four risks: The survivor can change their will. Mirror wills look synchronized, but they’re not necessarily binding agreements. The surviving spouse is free to change their will at any time, to exclude children, stepchildren, change beneficiaries or rewrite the estate distribution entirely. Beneficiary designations and joint assets bypass the will. Assets like RRSPs, RRIFs, TFSAs and jointly-owned property often pass outside the will via named beneficiaries or joint tenancy. A surviving spouse may intentionally or unintentionally leave everything to one side of the family and ignore the spirit and intent of the mirror will. Blended family conflicts. In second marriages or blended families, mirror wills may be insufficient unless accompanied by structures like spousal or testamentary trusts. Children from a first marriage risk being completely excluded and disinherited. Tax and liquidity issues. Estate liquidity becomes critical when there are significant registered accounts with non-estate beneficiaries, real estate and/or deemed disposition gains on death creating significant tax liabilities. If the surviving spouse handles these poorly, or if the surviving spouse’s death hasn’t been planned for, taxes can soak up a significant chunk of the estate, making less funds available to beneficiaries. Mutual wills To avoid some of the negative attributes of mirror wills, some estate planners and/or people who draft wills may suggest a mutual will. Mutual wills are a special type of estate planning agreement in which the survivor agrees not to revoke or change their will once the other partner dies. Mutual wills are backed by a binding contract. The intent is to ensure that both partners’ agreed-upon distribution plan cannot be changed later. It creates certainty that assets will flow as intended and can help prevent unfair disinheritance. Sometimes though, mutual wills create as many headaches as they solve. A surviving spouse may need assets to deal with a financial and/or health issue, but the asset is specifically assigned in the mutual will. A child or beneficiary may become disabled and need more support. Furthermore, tax laws may change. Given the constraints associated with a mutual will, a surviving spouse may be unable to adjust to a new tax planning opportunity. What seemed appropriate at the time of signing can become outdated and problematic later. Customized, individual estate plans are almost always best. Mirror wills are a red flag It’s not enough to note that a client has a will. Delve deeper when any of these conditions are present: One or both spouses have children from prior relationships. There are significant RRIF, insurance or share holdings, and non-estate beneficiaries. There are second marriages, large age differences or beneficiaries who may contest the estate. There is jointly owned real estate. A client is relying on simple, verbal assurance. (“I trust my spouse to do what we agreed to.”) These dynamics introduce real fragility into what appears to be a unified plan. Advisor takeaways Five things: Ask the critical question: If one spouse dies, and the surviving spouse remarries or engages in a common law relationship, how would the estate be handled? Review RRIF/TFSAs and joint-ownership assumptions. Make sure they align with written wills. Leverage estate planning software and prepare what-if models. Simulate scenarios where the surviving spouse rewrites their will, remarries or provides inter-vivos gifts. Consider spousal trusts or testamentary trusts for clients in blended situations. Treat life insurance as a planning tool, not just a payout. Use it for fairness across families. Simplicity is not the same as certainty. Mirror wills are common, but they are not a plan. Financial advisors often focus on growing and protecting assets but estate distribution is where clients’ life-long wealth gets allocated. Michael Kulbak, MBA, CPA, CMA, TEP, is principal of Kulbak Trust Solutions in Mississauga, Ont.

Daniel Johnson, The Canadian Press - Sep 4, 2025 / 8:56 am It's not uncommon for parents to want to help their adult children enter the housing market. For some, that help comes in the form of co-signing for their child's mortgage, but experts warn that means taking on financial risks they might not understand and could impact their own debt and retirement plans. "The most important thing to understand about co-signers is that if there are four people on the mortgage, each of them is not responsible for 25 per cent; each one of them is responsible for 100 per cent," said Ron Butler, principal broker at Butler Mortgage. At several major lenders in Canada, he noted that only one person listed on the mortgage agreement needs to sign for a renewal to take effect. "There could be four people on the mortgage. The bank will accept the sign-off of one single person to process the renewal, and once the renewal is processed, it's all locked in for another five years," he said. Butler said once you co-sign, it's extremely difficult to remove yourself from the mortgage. "You should probably never co-sign, to be honest with you. Co-signing, guaranteeing mortgages, is fraught with danger," he said. Butler recalls one incident that saw a mother have a “spectacular falling out” with her son after co-signing his mortgage, totalling over one million dollars, years earlier. "Now she absolutely wants off the mortgage. She does not want to have any financial ties to the son," he said. When she tried to approach the bank to get out of the mortgage and told the lender she would not sign a renewal, she was informed that her son could renew the mortgage on his own, he said. While co-signing for a child's mortgage is not as popular with the slowdown in the housing market, Butler said, it was an "epidemic" during the real estate frenzy of the early pandemic years when interest rates hit rock bottom. Leah Zlatkin, a licensed mortgage broker and LowestRates.ca expert, noted parents should consider the potential impact co-signing could have if they have multiple children who might need help to buy a home, leading to "family squabbles." Co-signing for one child may affect the parent's ability to help their other children in the same way, as there is only so much debt a person can take on. Instead of co-signing, Butler said providing a monetary gift or early inheritance may make more financial sense for parents looking to support their children’s real estate aspirations. "If you're in the money and you wish to give an early inheritance, that is absolutely fine," he said, adding that parents should know their own capacity to give. Zlatkin said parents could opt to take out a home equity line of credit and gift that money to their kids or just provide a lump sum of cash. Regardless of the option they choose, she said more parents are opting for a gift than to co-sign because then the parents "don’t have to be liable for anything."   https://www.castanet.net/news/Business/570382/Parents-co-signing-for-their-child-s-mortgage-is-fraught-with-risks-brokers

Individual client authorization for a representative is now instant By: Jonathan Got July 17, 2025 The Canada Revenue Agency (CRA) has changed its authorization request service for individuals in its “Represent a Client” feature, the tax department announced Thursday. The alternative process for individuals — where the taxpayer or their legal representative can authorize a representative using information from a previous notice of assessment — no longer includes a five-day processing time. Instead, representatives can now get instant access to their client’s account. To use the new process, the authorization applicant can use the authorization request service in “Represent a Client” and get information from their client’s notice of assessment issued at least six months ago. Authorization requests can’t be submitted on behalf of other representatives. Clients may authorize a representative instantly if they have access to CRA My Account and add the representative or confirm the authorization request submitted by the representative in “Represent a Client.” Effective July 15, the “Authorize a Representative” service within EFILE software is no longer available for individual clients. Representatives must use “Represent a Client” to gain access. This change does not affect authorization requests submitted through EFILE for business clients. A note from Bob: We can access your CRA data for you easily with the new authorization process!  Email us a copy of your assessment notice which is over 6 months old, and we can set up access to your CRA for things like RRSP and TFSA room. Having this access allows up to do better planning for you and help make sure you are taking advantage of all possible tax benefits. Call us if you want to know more or need help. Cheers   Bob

The argument for a personal fiduciary certificate program By: Mark O’Farrell and Barb Amsden July 29, 2025 04:12 Most Canadians are good, honest people who don’t break the rules. But what if they don’t know or understand their role? Acting as an executor or power of attorney (POA) doesn’t come with a handbook, so it can be easy for a well-intentioned person to cross the line, neglect a key responsibility or fail to provide something they were unaware they had to deliver. The fiduciary responsibilities of executors, POAs, guardians and trustees fall within provincial and territorial jurisdictions. Banking and taxation are mostly federal. Financial literacy and other financial regulations fall into both camps. Ethics can be confusing. Financial abuse is far too common and must be avoided at all costs. Canadians who act as fiduciaries need guidance, so that they understand their responsibilities and treat those they work on behalf of fairly. Our industry has a moral duty of care to provide people what they need to stay onside. It’s important for beneficiaries, to manage their expectations and inform them of their rights. It’s important for financial advisors and financial institutions, to minimize errors and malfeasance and avoid regulatory censure and penalties. Frank discussion of this topic is long overdue. A basic knowledge requirement The people that personal fiduciaries act for — disabled or incapacitated, minors, the deceased or beneficiaries — all have a reasonable expectation that those appointed will act in their best interest and follow their mandate. But how is this possible if there are no guardrails and the only option is to litigate after someone makes a mistake or acts incorrectly? When someone is appointed, particularly when they are being compensated to look after the affairs of another, they should be required to meet a basic knowledge requirement. Canadians need a short, easy-to-understand self-study program covering ethics, personal fiduciary responsibilities and the general duty of care required when acting as a POA or executor in a position of trust. It should review responsibilities and expectations regarding communication, fairness, protection and distribution of assets, reporting and more. Will makers and POA grantors should be able to specify that they want their appointees to take such a course. To satisfy financial institutions and give confidence to those relying on the fiduciary, evidence of completion should be available — a certificate that can be presented upon request. This would reduce the early demands on advisors’ time when a POA is exercised, or a client is a first-time executor. Later, it would provide a defence for professionals involved in POA or estate cases who become subject to litigation when a beneficiary or other person believes that the financial gatekeepers could have stopped fiduciary misbehaviour but didn’t. Mark O’Farrell, BA, CLU, CHFC, TEP, CEA is CEO at The Institute of Certified Executor Advisors and the Canadian Institute of Certified Executor Advisors. Barb Amsden is a financial consumer advocate and author of How to Laugh at Death and Taxes .

Only a quarter of Canadians who are likely eligible apply for the DTC By: Jonathan Got March 6, 2025 The disability tax credit (DTC) is underused due to complexities in the application process, tax filing difficulties and challenges with CRA processes and contact centres, according to the 2024 annual report issued by the tax agency’s disability advisory committee. Although 96.6% of completed applications are approved, only one-quarter of people with disability who are likely eligible submitted a completed DTC application. And of those with a DTC certificate, only 64% claimed the credit in 2022, according to the report. Among its 18 recommendations, the committee suggested the CRA improve awareness of the program and simplify the application process. Many eligible Canadians don’t understand the benefits associated with a DTC certificate, such as opening a registered disability savings account or the upcoming Canada Disability Benefit , the report said. The committee recommended targeted awareness campaigns to hard-to-reach people with disabilities, such as the homeless and Indigenous people, as well as medical practitioners who help fill in the application form. Misconceptions about DTC eligibility among medical practitioners mean some practitioners may discourage eligible individuals from applying, the report said. Partnerships with Indigenous communities and health authorities can increase awareness among potential applicants while collaboration with practitioner associations can improve DTC understanding among medical professionals. The committee also found the complex application process to be a barrier to accessing the DTC. Only 24% of online DTC applications are completed, “highlighting that difficulties in finalizing applications remain a critical issue,” the report said. The application for the DTC consists of two parts. Part A of the T2201 form is completed by applicant and Part B by a medical practitioner who provides eligibility information. Last year, the government estimated that 75% of DTC applicants used professional services such as lawyers and DTC promoters to complete the process. In addition, provinces and the federal government may have different definitions of what constitutes a disability, which makes the system confusing and difficult to navigate. The committee advocated for a simplified and centralized application process and to work with the disability community to establish a common definition of disability. Some of these issues lie outside of the CRA’s mandate, so addressing DTC issues will require collaboration with Finance Canada to amend the Income Tax Act and Employment and Social Development Canada to develop accessibility reforms, the report noted.

Katrya Bolger Special to The Globe and Mail PublishedJune 1, 2025UpdatedJune 3, 2025 FRED LUM/THE GLOBE AND MAIL Michelle Thorne outside her Barrie, Ont. home on May 27. When she downsized from her 1600 sq ft home, she moved into a 1450 sq ft townhome. The lack of a garden and privacy lead her to sell the townhome and buy a smaller 864 sq ft home that had a large yard and garden. In 2015, Michelle Thorne was living alone in a four-bedroom house in Barrie, Ont. Her adult children had moved out, and she found herself using only half the house. Ms. Thorne, who was working as a teacher, decided to downsize. She bought a three-bedroom townhouse in a bustling area nearby shops and services – features she thought would be useful once she retired. But soon after moving in, she realized something was missing. “As soon as I arrived, I started missing the peace and quiet of my old neighbourhood. I used to sit outside and enjoy the nature around me, and I missed that almost immediately.” The young Canadians buying ‘boring’ businesses from retiring baby boomers It was just one of many adjustments for Ms. Thorne. She struggled with the lack of privacy and the tighter living space. Her new garage was too small for her car and barbecuing meant dragging the grill onto a shared driveway. She’d hoped the move would bring a better financial return but barely broken even – and felt a loss of control as the condo board took over maintenance decisions. Downsizing is a popular choice for those looking to simplify their lives with less upkeep and lower costs, especially after children have moved out. A 2024 survey of home-sellers by online real estate platform Wahi found 37 per cent of respondents cited downsizing as the leading reason to sell their home. This trend is particularly noticeable among older Canadians, with 69 per cent of downsizers aged 55 and above. But some are left wondering whether the move to a smaller property is truly worth it. A 2022 survey by HomeEquity Bank found that 41 per cent of respondents admitted they were unaware of the true costs associated with downsizing. Hoping to cash out, a wave of retiring cottage owners face a buyer’s market Jacqueline Watson, a Toronto-based realtor, says she often sees clients rush into downsizing without fully considering the costs and challenges of adapting to a smaller living space. She notes one of the most overlooked parts of downsizing are the unforeseen financial costs. “If you have a mortgage, what penalties are you looking at? Are you emotionally attached to your stuff – and if so, how much would you pay to rent a locker to store it? Have you thought about what the land transfer taxes may be?” She adds that costs such as moving expenses, land transfer taxes and condo fees can quickly add up. For seniors, she further advises factoring in a budget for accessibility renovations, such as installing chairlifts, to ensure the home remains functional as they age. FRED LUM/THE GLOBE AND MAIL A 2022 survey found that 41 per cent of respondents admitted they were unaware of the true costs associated with downsizing. For Ms. Thorne, her first downsizing experience in Barrie helped her make a more informed choice for her next move. Danielle Mah, an educational assistant and creator of a YouTube channel focused on minimalism, had to make sacrifices when she and her husband moved in 2021 from a 2,000-square-foot house in Calgary to a townhouse half that size in Chilliwack, B.C. The move was driven by the high costs of utilities and maintenance of their previous home. Ms. Mah says they struggled to fit years’ worth of belongings: “Even after selling items, reducing clothing and letting go of furniture, the real challenge was realizing we no longer had the space for what was left.” During the move, she kept only 50 of her 200 houseplants due to space and logistical constraints. Instead of paying for storage, they gave away some belongings. Ms. Mah advises others planning similar moves to gradually declutter and embrace minimalist strategies such as buying versatile clothing and vacuum-sealing off-season items. Downsizing can also limit the ability to entertain. In 2018, Claudia Espindola, an operations manager, relocated from a three-bedroom townhouse in the Greater Toronto Area to a two-bedroom preconstruction condo in Guelph, Ont., after her job went remote and her children moved out. After moving into the condo, Ms. Espindola quickly realized the absence of a distinct separation between the living and dining areas: “The biggest challenge was the lack of space for entertaining. I could fit two people comfortably, but I had to buy foldable tables and chairs to set up every time someone comes over.” While her condo offers a party room, each use incurs a $100 fee, as well as a deposit and cleaning charge. She is now hunting for a larger home that includes a dedicated dining area to better accommodate guests. For Ms. Thorne, her first downsizing experience in Barrie helped her make a more informed choice for her next move. In 2017, she moved into a two-bedroom bungalow in a quiet, parkland area near the waterfront. She enjoys being surrounded by nature, even if it means handling the extra work of maintaining the property and replacing yard equipment. The teacher, who retired two years ago, says she regrets prioritizing retirement over her immediate needs. When she downsized, she was focused on a future without car access, even though she plans to drive for at least another decade: “I was too focused on the future and not paying enough attention to what I needed in the present.” Now settled into her home, she says she would advise others to carefully consider what truly matters to them before deciding to downsize: “It’s a decision that can’t be thought of from either a strictly financial side or lifestyle side. They’re impossibly intertwined, and I’m not sure anybody can know for sure how much things really mean to them until they lose them.”

Use these tips for greater flexibility with assets from a life income fund By: Michelle Schriver February 14, 2025 If your client has a life income fund (LIF) that earned big returns in 2024, they may have the opportunity to unlock a larger portion of the LIF this year, depending on the governing province. Pension regulations in B.C., Alberta, Manitoba, Ontario, and Newfoundland and Labrador have maximum payment calculations for LIFs that take into account the previous year’s investment earnings, and 2024 was a great year for investors. “It’s definitely an important planning point, but it’s one that can be easily missed” because the opportunity may not be available every year, said John Natale, head of tax, retirement and estate planning services with Manulife Investment Management in Oakville, Ont. In B.C., Alberta, Ontario and Newfoundland, the maximum LIF payment is the greater of the LIF withdrawal limit or the LIF’s investment return in the previous year. (Manitoba’s calculation is a bit different. For example, to the investment return in the previous year, Manitoba adds 6% of the value of transfers in from a locked-in retirement account or pension plan during the current year.) The difference between the withdrawal limit and investment return could be significant. For example, the LIF withdrawal limit for someone aged 55 is 6.51% in these four provinces, and the S&P/TSX Composite Index returned 18% in 2024 — a difference of 11.49%. Clients are typically required to withdraw an annual minimum from a LIF (2.86% for someone aged 55), and they can transfer the excess (18% – 2.86% = 15.14% in this example) or any portion of the excess to their RRIF or RRSP (if they are under the age of 71). This tax-free direct transfer requires no contribution room, and it gives clients greater flexibility with their registered assets: RRSPs have no minimum or maximum annual withdrawals, and RRIFs have only the annual minimum withdrawal. Transfers from LIFs allow some of the money to be unlocked every single year, said Adam Chapman, founder of YESmoney in London, Ont. “And then when there’s a big return year … you can unlock a lot more,” depending on the province’s pension regulations. (The jurisdiction of a LIF or locked-in retirement account is determined by where the employee worked and was living at the time they contributed to the pension plan, not the current province of residence of the account owner. Quebec allows those aged 55 or older to withdraw up to the entire value of a Quebec-regulated LIF.) Chapman said that in recent years when interest rates were low, commuting the value of a defined-benefit pension plan was an attractive opportunity, “which means there are a lot of people out there right now that have very big LIRAs [locked-in retirement accounts] or LIFs.” Transfers allow clients to unlock not only LIF value, but also the future growth on that value, Natale said. Making the magic happen The financial advisor prepares a letter of direction for the transfer from the LIF to the RRSP or RRIF. Then, a  T2030  or  T2033 direct transfer form (for transfer to an RRSP or RRIF, respectively) is filled out. The T2030 generates offsetting receipts (T4RIF and 60L) that won’t have matching values, so advisors may need to explain that to clients, Chapman said. The T4RIF will report both the payment amount (i.e., income) and the amount transferred; the offsetting 60L will report the amount transferred, which can be deducted on the client’s tax return. A warning: If the client receives income-tested benefits that don’t account for deductions, those benefits could be negatively impacted. An example is the Ontario Student Assistance Program, Natale said. Chapman suggested that a client’s annual LIF withdrawal shouldn’t be set to the maximum in the provinces that take into account the previous year’s return. If the withdrawal is set to maximum and returns exceed that limit, “now all of a sudden the client has unexpected taxable income coming in,” he said. “If they happen to also be drawing OAS [old age security] at the time, you may inadvertently be pushing them into an OAS clawback zone.” As such, it may make sense to set the LIF to the minimum withdrawal, he said, and transfer the excess to the client’s RRSP or RRIF each year. As far as the timing of unlocking, “you can do it throughout the year, because the maximum allowable payment doesn’t change,” Chapman said, referring to the four provinces. A down market at time of transfer would technically provide an advantage by leaving the LIF with less value and the RRSP or RIFF with more value. “When the markets recover, you’ve gone back up to your original amount and you’ve grown the RIFF instead of the LIF,” Chapman said. But waiting for a down market isn’t advisable, he said, because you can’t time the market. “If it happened to happen, then it’s … an added bonus for the people who can make those transfers, stay invested, and have that money recover in the RIFF,” Chapman said. Unlocking opportunities Chapman noted the benefit of regularly unlocking LIF value, and described a scenario in which someone exhausted the income from their RRSPs and TFSAs and was left with their LIF. “They’re stuck with an account they can’t access,” given the LIF’s maximum limit, he said. Chapman works with retirees and specializes in retirement income, so “instead of adding money to an RRSP every year for RRSP season, we’re LIF unlocking,” he said. “It’s just part of our process.” In some jurisdictions, a client can unlock up to 50% of a LIRA when they first convert to a LIF, Natale said. “There are very significant time constraints, so you want to make sure you comply with the rules,” he said. In Nova Scotia, one-time unlocking provisions (along with other pension measures) will come into effect on April 1. Also, the first year a client converts a LIRA to a LIF, the LIF minimum is zero, Natale said (just as it is for a RRIF in the first year it’s opened). “That means you can take the full maximum that year and transfer it to an unlocked RRSP or RRIF.” Some provinces, including Ontario, prorate the withdrawal amount in the first year, he said, so in those cases, the client would want to convert a LIRA to a LIF as early in the year as possible. Another tip: If the client’s spouse is younger, use the spouse’s age to set up the LIF minimum, Natale said. That way, “the spread between the minimum and maximum is larger,” allowing the client to unlock a greater portion of the LIF each year. “The idea is to chip away at the LIF until you can do the small account balance unlocking,” Chapman said — an opportunity when the LIF drops to a certain value. Pension legislation also allows LIFs to be unlocked under conditions such as shortened life expectancy or financial hardship. “The key is to confirm the pension jurisdiction that your LIF is governed under and then look at the rules,” Natale said. https://www.investmentexecutive.com/news/industry-news/some-clients-can-unlock-extra-lif-value-in-2025/

Rob CarrickPersonal Finance Columnist Published    When you celebrate real estate like we do in Canada, you end up with anomalies such as people who are house rich and retirement poor. It all starts when you stretch your finances to buy a house and justify it with the expectation of building wealth through home equity. A preview of how this might work can be found in retired households with lots of equity but not enough income to cover living costs.   A reader of the Carrick on Money newsletter recently asked if seniors are eligible for the Guaranteed Income Supplement (GIS) if they live in a valuable home but have no other financial assets. The answer is yes – GIS eligibility is based on income and marital status, not assets.   Another query came from a reader with eighty something parents who will deplete their retirement savings in two years but also own a paid-off house worth almost $1 million. Could the parents get a mortgage of $300,000 and invest the money to generate income? Should they sell and rent?   These are the uncomfortable questions that get asked when people have most of their wealth trapped in a home. When you have money in a tax-free savings account, registered retirement savings plan or registered retirement income fund, it can easily be transferred into your chequing account in a couple of days, max. Home equity can substitute, but not easily or cheaply. An extreme form of being rich in home equity with insufficient income is what the consultancy Open Policy refers to as “poor millionaire homeowners.” Open Policy has found that Toronto’s Top 50 neighbourhoods ranked by average home values in 2021 had 6,860 people 65 and older with poverty-level incomes and homes worth more than $1-million.   A more common story is the senior who starts off okay in retirement, then finds their savings are running out. One solution is selling the family home and renting, but this move requires some analysis of how much of the sale proceeds will be eaten up by rent. Decent accommodations can run as much as $3,000 a month or more.   People who want to stay in their home can access their equity to invest or spend, but they’ll have to borrow against it using a home equity line of credit or a reverse mortgage. All of these options involve interest costs, which highlight the fact that you can’t get free access to your home equity unless you sell. Otherwise, you basically have to rent it. I asked lenders in my LinkedIn community about the availability of mortgages for this type of retiree, and the answers were not promising. Lenders have income requirements for mortgage applicants that may be difficult for retirees to meet, and home equity lines of credit can be similarly hard to arrange after retirement.   A basic rule if you’re concerned about not having enough retirement income and own a home: Make sure you have a home equity line of credit (HELOC) in place before you leave the work force. HELOCs aren’t the cheap source of funds they were a few years ago – expect a borrowing cost of 5.45 per cent to 5.95 per cent. That’s a fairly high hurdle to clear if you plan to invest your HELOC money to generate income.   Where HELOCs can help is in allowing you to instantly transfer money into your chequing account when needed, without having to disclose your personal business to anyone. You must pay the interest you owe every month, but repayment of the principal is generally left up to you.   Dipping endlessly into your HELOC to supplement your own savings, plus Canada Pension Plan benefits, Old Age Security and the GIS is unsustainable in the long term. You may eventually reach unaffordable levels of monthly interest-only payments and potentially run up against the borrowing limit on a HELOC. The general HELOC rule is that you can borrow as much as 65 per cent of your home’s value.   I asked certified financial planner Rona Birenbaum about the eighty something parents who are running out of money, and she replied in an e-mail that “their situation is exactly what reverse mortgages are designed for.”   Reverse mortgage interest rates are high – they range from 6.6 per cent to almost 8 per cent. Borrowers can minimize interest costs by borrowing small amounts on a regular or as-needed basis rather than one lump sum.   Interest on a reverse mortgage accumulates in the background and then is paid along with the principal when you sell. If you keep the loan running for a long time, you could find disappointingly little home equity left.   The availability of reverse mortgages highlights the fact that being house-rich and retirement-poor is a fixable problem. But the fix demands compromises and trade-offs. If there’s a lesson in all of this for today’s house hunters, it’s to buy a home that lets you afford to save for retirement.

With all the media talk about US / Canada trade tensions these days it’s a good time to discuss some wise strategies for times of economic uncertainty. Whether you’re still saving for retirement or already enjoying it, negative economic news can shake confidence. The good news? A solid plan can help you stay on track. Below are some tips for keeping finances steady. If You’re Still Saving for Retirement Economic uncertainty might make you want to pause or delay saving, but patience is key. Here’s what you can do: Stick to Your Plan – If your investments decline in value stay invested and trust that markets historically recover. If you pull out early, you might miss the upswing when things bounce back. Keep Contributing – If you’re regularly investing, keep at it! Buying during downturns means you’re getting investments “on sale.” Over time, this approach—known as dollar-cost averaging—can lower your average investment cost. Diversify Your Portfolio – A mix of equity and fixed income investments helps cushion the blow when one sector takes a hit. Having a balanced portfolio means that even if some investments decline, others might hold steady or grow. Rebalance Periodically – Review your portfolio with your financial advisor and adjust if necessary to stay aligned with your risk tolerance and goals. If You’re Already Retired If your goal is to make your retirement savings last during times of economic uncertainty here are some ideas on how to remain financially stable: Prioritize Expenses – Focus on essentials first and cut back on non-essentials if times get tough. Dining out, travel, or luxury purchases can be scaled back if necessary. Adjust Your Withdrawals – If a retirement portfolio is struggling because of market conditions withdrawing less for income is one option to make savings last longer. A flexible withdrawal strategy may help prevent depleting retirement assets too quickly. Explore Additional Income – Part-time work, or consulting can sometimes help fill an income gap during times of economic stress. Sometimes even a small extra income stream can make a difference in retirement cashflow needs. Consult a Financial Advisor – A professional advisor can help you navigate economic uncertainty with a strategy tailored to your situation. If you don’t already have an advisor, contact our office to get expert advice. Smart Moves for Everyone Regardless of where you are in your financial journey, these habits may help you weather any period of economic stress: Stay Informed (but Don’t Panic) – Economic downturns come and go. Staying educated without making rash decisions is key. Read financial news from reputable sources but avoid doom-and-gloom headlines that incite fear. Avoid Emotional Investing – Fear often leads to poor financial choices. Stick with your plan and ride it out. Remember, long-term investors who stay the course tend to do better than those who try to time the market. Look for Opportunities – Downturns can present opportunities, such as investing in undervalued assets. If you have extra cash, consider making strategic investments for future gains. Tough times don’t last, but well-prepared investors do. By staying calm, making informed choices, and adapting as needed, you can keep your financial future on solid ground—whether you’re still saving or already retired. With patience and discipline, you’ll come out stronger on the other side.

Etiam rhoncus. Maecenas tempus, tellus eget condimentum rhoncus, sem quam semper libero, sit amet adipiscing sem neque sed ipsum. Nam quam nunc, blandit vel, luctus pulvinar, hendrerit id, lorem. Maecenas nec odio et ante tincidunt tempus. Donec vitae sapien ut libero venenatis faucibus. Nullam quis ante. Etiam sit amet orci eget eros faucibus tincidunt. Duis leo. Sed fringilla mauris sit amet nibh. Donec sodales sagittis magna. Sed consequat, leo eget bibendum sodales, augue velit cursus nunc. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Donec quam felis, ultricies nec, pellentesque eu, pretium quis, sem. Nulla consequat massa quis enim. Donec pede justo, fringilla vel, aliquet nec, vulputate eget, arcu. In enim justo, rhoncus ut, imperdiet a, venenatis vitae, justo. Nullam dictum felis eu pede mollis pretium. Integer tincidunt. Cras dapibus. Vivamus elementum semper nisi. Aenean vulputate eleifend tellus. Aenean leo ligula, porttitor eu, consequat vitae, eleifend ac, enim. Aliquam lorem ante, dapibus in, viverra quis, feugiat a, tellus. Phasellus viverra nulla ut metus varius laoreet. Quisque rutrum. Aenean imperdiet. Etiam ultricies nisi vel augue. Curabitur ullamcorper ultricies nisi. Nam eget dui. Etiam rhoncus. Maecenas tempus, tellus eget condimentum rhoncus, sem quam semper libero, sit amet adipiscing sem neque sed ipsum. Nam quam nunc, blandit vel, luctus pulvinar, hendrerit id, lorem. Maecenas nec odio et ante tincidunt tempus. Donec vitae sapien ut libero venenatis faucibus. Nullam quis ante. Etiam sit amet orci eget eros faucibus tincidunt. Duis leo. Sed fringilla mauris sit amet nibh. Donec sodales sagittis magna. Sed consequat, leo eget bibendum sodales, augue velit cursus nunc.

Etiam rhoncus. Maecenas tempus, tellus eget condimentum rhoncus, sem quam semper libero, sit amet adipiscing sem neque sed ipsum. Nam quam nunc, blandit vel, luctus pulvinar, hendrerit id, lorem. Maecenas nec odio et ante tincidunt tempus. Donec vitae sapien ut libero venenatis faucibus. Nullam quis ante. Etiam sit amet orci eget eros faucibus tincidunt. Duis leo. Sed fringilla mauris sit amet nibh. Donec sodales sagittis magna. Sed consequat, leo eget bibendum sodales, augue velit cursus nunc. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Donec quam felis, ultricies nec, pellentesque eu, pretium quis, sem. Nulla consequat massa quis enim. Donec pede justo, fringilla vel, aliquet nec, vulputate eget, arcu. In enim justo, rhoncus ut, imperdiet a, venenatis vitae, justo. Nullam dictum felis eu pede mollis pretium. Integer tincidunt. Cras dapibus. Vivamus elementum semper nisi. Aenean vulputate eleifend tellus. Aenean leo ligula, porttitor eu, consequat vitae, eleifend ac, enim. Aliquam lorem ante, dapibus in, viverra quis, feugiat a, tellus. Phasellus viverra nulla ut metus varius laoreet. Quisque rutrum. Aenean imperdiet. Etiam ultricies nisi vel augue. Curabitur ullamcorper ultricies nisi. Nam eget dui. Etiam rhoncus. Maecenas tempus, tellus eget condimentum rhoncus, sem quam semper libero, sit amet adipiscing sem neque sed ipsum. Nam quam nunc, blandit vel, luctus pulvinar, hendrerit id, lorem. Maecenas nec odio et ante tincidunt tempus. Donec vitae sapien ut libero venenatis faucibus. Nullam quis ante. Etiam sit amet orci eget eros faucibus tincidunt. Duis leo. Sed fringilla mauris sit amet nibh. Donec sodales sagittis magna. Sed consequat, leo eget bibendum sodales, augue velit cursus nunc.