KINE 3350 Lecture Notes - Lecture 8: Baby Boomers, Savings Account, Home Equity
3 Feb 2016
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1990s: saved 19%, now save 4% Ppl may outlive their savings. Economic decline, can"t rely on gov"t, di cult to save if making low income. Rrsp: put money in rrsp account for biggest tax break. 1/4 canadians do this (high income ppl tend to do it) Asset only if you sell and downsize. But many seniors don"t want to sell. E. g home is 400k, take out 100k loan w no taxes. Pay loan when you die or sell home. A lot of baby- boomers are buying big homes. But may not be able to pay o mortgages when reqre. Stock market: conservaqve/no big risks so not making much. Tax- free savings account: put in /year. Don"t need to pay taxes when you withdraw. Talk to nancial advisor: most senior couples can live on k/year. Afraid of running out of money, poorer reqrement than parents. Some in good shape, some aren"t. Spending = debt, mortgage, not enough pension, savings.
