4& ~ Wednesday, October 26, 1994 - Norlh Shore News Bead? i aa a Mes ats adh, NE eT att Cb ne AF RAPED eware family loans that turn into ‘gifts’ WHERE WILL you live dur- ing retirement? Most person- al and financial planning depends on your answer to that question, whether retire- ment is still ahead of or already upom you. “My 94-year-old mother has finally decided to sell her home and move into a retirement home, now she has outlived all her contempo- raries in her own neighborhood,” writes reader B,W. “She plans to live off the investment proceeds of her money while saving her capital for her old age. Could you write a col- umn on this topic?” Mum sounds as if she has done her planning well. She should now invest her money in guaranteed . deposits or secure bonds with stag- gered maturity dates, possibly (depending on her tax bracket) con- sidering a prescribed annuity and, for the long term to cover her member- ship in the centenarians’ club, gradu- ally move some money into stocks or mutual funds including those with an international flavor. “Property ownership can be a senior’s most valuable asset, finan- cially and emotionally,” said Charmaine Spencer, a research asso- ciate at Simon Fraser University's Gerontology Research Centre. “Having contro! over where they live is particularly important to seniors.” Spencer, who has a Master’s of Law degree, cautions to be careful if family members suggest you sell the home and move in with them, or sign over the home in exchange for care. Adults live much longer now, so © Continuing low intezest rates °Volstile equity and bond markets Michael DOLLARS AND SENSE when an elderly parent moves in, “the adult offspring sometimes tires of ti: living arrangement, not having realized initially it may carry on for decades. “Even when there is a legally binding agreement (about the hous- ing arrangements), the older parent may stil] be neglected because there was nothing specific about the quali- ty of care in the agreement,” Spencer warned, “Strained relations can even lead to physical violence. Older adults, usually women, may feel they can’t leave because they are simply too poor to live anywhere else.” Spencer added that when seniors stay in their own homes — and espe- cially if they move in with adult chil- dren — they are often pressured to provide loans (which usually tum into unintended gifts). “Although helping one's children is any person's choice, in some fami- lies this has been part of a recurring pattern in which the parent bails out the adult offspring. with serious financial consequences for the par: ent,” said Spencer, “Sometiraes the senior is threatened by the offspring the fumily won't visit, Untortunately, once the money is gone, the family muy leave the senior aione anyhow, “{f the senior fives with a son or daughter, the family may be tempted to encroach on the senior's money from the sale of the home, partly hecause of the costs of living togeth- er and partly because they assume ‘we'll get it anyway once mother and/or father dics.”” To avoid exploitation and other problems, Spencer suggested seniors should: * Look at the alternatives to selling or moving in with family members. Could you stay in your home if you modified it (install a wheelchair shower or grab bars, for example)? What about using home care support services? Hiring a housekeeper? Sharing the home? »* Consider deferring property taxes or taking out a reverse mortgage to provide some extra income. * Don't sell your home immediately. First rent it out while you try a new arrangement like living with family members. * Assess the risk. The relatives you ff are considering living with might —& appear well-off, but could tura out to be living well beyond their means. Circumstances can change: What : happens to you if somebody is laid & off, or the family breaks up? RETIREMENT INCOME PLANNING IN THE ‘S0s FACES THE CHALLENGES OF: 9 Increasing taxation directed at retirees e Instability of financial institutions Our informatien-packed two hour seminar will help you pian for your financial security NORTH VANCOUVER Delbrook Community Centre 600 W. Queens Oak Room Tuesday November ist 1:30-3:30pm/7:30-9:30pm Thera is no charge for the seminar, but seating is limited. Please call to reserve your space. Telephone 925-3101 SR UARD SOLGUARD FINANCIAL LTD. Consultants & Grokers since 1974 Left to right: Naney Farran, Gordon Brown, Janet Kelchen Refreshments will be served #1205-675 Y6B 1N2 West Hastings St. Vancouver, B.C. W. Vancouver, B.C. #401 Kepilano 100 Park Royal South V7T 1A2 Above all else, people seek trust in an investment advisor. For 85 years we've built a tradition of trust with Canadians. A tradition that is one slep closer (o yeu with our new North Shere branch. respect me you'll sign this ugree- ment, It shows we trust each other.” Mike Grenby is a North Shore- based columnists and independent financial adviser who works with individuals; he will answer your questions in this column as space allows -- write to Mike c/o 2444 Haywaod Ave., West Vancouver, V7V IYI. « Get any arrangements in writing, to avoid misunderstandings. And get independent legal advice. “Love isn't enough," Spencer said, “For many seniors, losing their home means losing their indepen- dence and dignity. Family members who say, ‘But this looks like you don't trust me’, need to be told by the senior: ‘I respect you.’ And if you CORRECTION NOTIC) A description errar has occu ral W Paint flyer. The correct description should read: 89 IT : * YOURSELF FLAT LATEX An interesting flat latex for Fe bedroorns, living rooms and low traffic areas. Dries to § B the touch in 30 minutes. 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