Books and Tools
Financial Survival for the 21st Century – 6th Revised Edition
This book is designed to alleviate much of the mystery that surrounds financial, lifestyle, and retirement planning issues. Workforce mobility is now a fact of life. Downsizing, right-sizing, right-aging, re-engineering, and other early leave programs are the future.
You can't put off any longer the acquisition of knowledge about your pensions and RRSPs, how they work and where you stand, should you find yourself in work transition. Read and learn how to:
- plan for the opportunity of a lifetime - your retirement
- manage your pension plans: government, corporate, and RRSPs
- handle the four greatest enemies of the investor
- understand cycles, your risk tolerance, and asset allocation strategies
- learn how to retire your assets
- discover how to select a financial advisor
The information age has arrived, causing major paradigm shifts. Work and employment will never be the same; old-line manufacturing is on the wane, while new-age technologies and the knowledge revolution are on the rise. The old type of corporate-sponsored pension plans are quickly becoming a thing of the past; employers are consistently passing more control over to employees. Government-sponsored social security programs are shifting gears away from universal programs to programs based on need. It has been documented in recent years that very few Canadians retire with financial security. It is our belief that during the next two decades the financial planning industry will emerge as a major force to enable more Canadians to take charge of their financial health and to retire with dignity. In fact, by the year 2010, financial planning education will be one of the greatest growth industries in the country and will be well entrenched as a middle-class phenomenon.
Retirees represent an increasing percentage of the Canadian population. The active workforce, which historically has supported retirees, is shrinking. During the next two decades the entire baby-boom generation will reach retirement age. This will create an inverse pyramid, whereby a smaller working population will have to support a very large group of retired citizens. Some people are predicting intergenerational conflict. There appears to be an increasing reluctance, inability, and outright unwillingness by government and younger Canadians to support the massive boomer generation heading for retirement. Common sense suggests that something will have to give. In fact, the odds are that the 21st Century will produce an even greater disparity between those who have and those who have not. For those who have the foresight to plan for the future, retirement can be the best time of your life. On the other hand, it can be a major disappointment for those who fail to prepare. This is the purpose of this handbook. We know that if you take charge of your cash flow today, if you understand the difference between saving and investing, if you recognize the different types and degrees of risk, and if you apply a winning mental attitude to the management of your pension funds and other financial assets, retirement with financial security will be your trophy.
Foreword
Are YOU ready to retire?
Some people talk about Canada facing a pension crisis as fewer workers are called on to support more and more retired people. If there is a crisis, you can’t count on it going away on its own. All of us are going to have to pitch in to fix it.
It’s good to know that the Canada Pension Plan and Quebec Pension Plan have been reviewed and adjusted to ensure enough money will be there. And we see employers across the country constantly revising and updating the group arrangements they provide for their employees to make them effective and sustainable. But, in the end, if there’s a problem, we’ll know it when we go to retire. So, what are you doing?
The recent boom in real estate has helped saving for the future by investing in your own home. It’s not a bad idea, but it’s probably not enough. Banks and mutual fund companies have done their best to encourage Canadians to maximize their RRSP investments. If you are one of the few who have “maxed out” their contribution room, congratulations. Many of us, however, are not doing as much as we need to.
But where do we start? There is still a lot of fear, confusion, ignorance and procrastination to overcome. It doesn’t look easy and it doesn’t look like fun.
I believe this handbook demonstrates that it is possible to engage and empower “ordinary, non-financial” people. If we take simple steps now, it doesn’t have to be hard. I am convinced that you, as a working Canadian, can achieve a dignified retirement.
The handbook you are holding is a start to making it happen. Read it now for yourself or give it to someone you love.
Christopher Cartwright
Vice President
The Financial Education Institute of Canada
Praise for...
"Financial Survival is a realistic guide and could be very valuable for employees worried about stashing away a nest egg."
The Globe & Mail
"This new Canadian book is ideal as a self-study or group educational tool. It's designed to help individuals understand and act on principles for short and long-term financial well-being."
Canadian HR Reporter
"Financial Survival, will serve as a permanent financial and retirement planning reference. The comprehensive and thought provoking contents translate complex material into easily understood concepts."
Sharon Chandler
Director, Policy and Communication
Colleges of Applied Arts and Technology (CAAT) Pension Plan