Cindy Nagassar

In the 1870s one of the first pension plans in Canada was sponsored by the Grand Trunk Railroad. Retirees could benefit from the plan at age 70 for a lifetime pension. Trouble was a Canadian’s average life expectancy was 55 years of age. This is what is called a pretend gift or empty promise.

Fast forward a century and a few decades and we see a somewhat similar problem. Employees are retiring earlier than 65 by choice or not, and there are many more upcoming retirees than at any time in history. Retirees are also living longer. A new term has entered the lexicon of financial terminology. That term is the unfunded liability.

If something cannot be detected by any of the 5 human senses does that mean it lacks value?

Society today has access to a vast amount of information on any given subject. This availability has its pros and cons. The good point is that consumers could make more informed decisions and choices. They could get better value for their money by getting manufacturers to adapt the products they want or to provide better/more services.

However, information published in the mainstream media may not have as its goal the edification of their readers. In a cutthroat publishing world the be all end all is the # of eyes on a given article. It is quite possible that accuracy is sacrificed for the black bottom line. Still these snippets can be the starting point for useful discussion on certain topics.

Have you ever had that feeling of being overwhelmed when looking at a buffet of 100 items with all the choices available to eat and enjoy? Ever walked out of a buffet restaurant with a slight case of upset stomach?

Well it can happen in more than the food realm.

Heading reluctantly (at least me) into autumn let’s reflect on this past summer’s more noteworthy happenings.

Earlier this year one family I advise went to the bank and turned down the tempting offer of a lower monthly payment when they consolidated their debt.

In no particular order of importance consider the following:

One consequence of the financial crisis in the US is the inability of municipalities and states to stay in the black. Some of them have coped with their lack of cash flow by cutting pensions benefits to their retirees.

Not long ago a bank teller and I got into a conversation about hair. She asked me: What can I do to have nice hair? Mine is falling out and it’s thin. I told her make sure to eat enough protein and vitamins, giving her examples of some foods she could eat. Then she asked me isn’t there some treatment I could do instead? Her question led me down the shampoo aisle at the nearest large store to count how many hair products were available. There were products for frizzy hair, colored hair, long hair, blond hair, products to increase volume, and products for shine. I lost count at 351. Then I reflected on human nature because I have encountered her viewpoint in the past. A close relative has told me that in his old age he’s OK with getting a medical condition as long as medical care can fix it. Healthy lifestyle? Why bother?

The question to ask here is: Has prevention gone out of style?

Hello 2012! Shortly before Christmas I had a conversation with a client who was in a dilemma. You know what a dilemma is. It’s when you have two choices and both of them are rotten. Yet the conversation, which lasted about half an hour ended with her deciding on a positive action plan and a more hopeful feeling about her family’s financial future. How did this come about? It was because she was able to talk through her situation with someone that would listen, and ask a thoughtful question here and there. The listening and questioning empowered her to make a decision. I feel privileged to play the role of accountability partner/listener so that clients can organize their thoughts and thereby summon their courage to make the decisions that will be fruitful for their entire future not just financial.

In the spirit of the season just passed, let’s begin this newsletter by making a list and checking it twice. This list will reveal the hitherto untold interdependence of all aspects of your financial situation. It is also a how to list for you to put theory into practice, if you haven’t already.