Author: Maurie Backman

As of 2022, the typical American aged 75 and over had $130,000 in retirement savings, according to the Federal Reserve. However, Americans 65 to 74 had a median retirement savings balance of $200,000.

The reason older people have less money may boil down to the fact that by age 75, a lot of people have been retired for quite some time and have been steadily dipping into their nest eggs.

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On the other hand, there are people in their mid-70s and even beyond who continue to work. For some, it’s because their jobs are a labor of love. For others, it’s a matter of financial necessity.

Let’s say your father has hit 75 and he’s still plugging away at his desk job. Having just $31,000 saved for retirement, it’s natural you’re both worried about how he’ll get by. That frankly isn’t a ton of money, even for a shorter retirement.

But if your father still works and earns a comfortable salary of $70,000 a year, his situation is far from hopeless. And if he’s able to work a few more years, he has a prime opportunity to boost his savings.

The upside of working later in life

Axios analyzed data from the Bureau of Labor Services and found that almost 19% of Americans ages 65 and over were still working as of 2024. And that alone can help compensate for a lack of savings.

If your father is 75, it means he’s beyond the point where it makes sense to delay Social Security. In fact, he hopefully claimed Social Security at 70, since there’s no financial incentive to hold off on taking benefits beyond that point.

If not, encourage him to file right away and see how much of a retroactive benefit he can get. Those retroactive benefits max out at six months, but at least it’s something.

Meanwhile, if your father is collecting a $70,000 annual salary plus Social Security, he may have more than enough income to cover his expenses. At this point, he should, conceivably, be able to either save some of his salary and/or the majority of his Social Security income.

One thing you should know is that while there are age limits for traditional IRAs, they don’t apply for those funding Roth IRAs or 401(k)s. This year, your father can contribute up to $8,000 to his IRA or $23,500 to his 401(k) plan. If there’s a match in his 401(k), it’s worth capitalizing on it. It pays to save in one of these accounts for the tax benefits.

Of course, one thing to keep in mind is that if your father is 75 years old with a traditional IRA, hey may already be on the hook for required minimum distributions (RMDs). With a 401(k), RMDs can sometimes be deferred if the plan holder is still working. Roth IRAs and 401(k)s do not force savers to take RMDs, though. In this case, your father may want to consider rolling over his traditional IRA into a Roth account.

Of course, given your father’s age, it’s important that he not invest any savings he builds too aggressively. He may end up wanting to retire soon, so he needs a good portion of his portfolio in stable assets, like bonds. Your father should also maintain enough cash savings to cover at least a year of expenses.

How much does it take to pull off a comfortable retirement?

A recent Northwestern Mutual survey found that Americans think it takes $1.26 million to retire securely. But the savings data above reveals that most people don’t have anywhere close to $1.26 million by the time they reach retirement age.

The reality is that the amount of savings it takes to retire comfortably depends on your needs and age. Someone who’s still working at 75 may not need as much savings as someone who decides to retire at 65.

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What someone in the situation above needs to do, though, is estimate their annual expenses and see how much savings it will take to cover them in the absence of a paycheck — because at 75, it’s unclear as to how much longer it will be possible to keep plugging away.

Now with regard to your savings, you may want to assume a 4% withdrawal rate. With $31,000 saved, that amounts to $1,240 per year, which isn’t a lot. However, keep in mind that’s on top of Social Security.

The average retired worker today collects about $1,980 per month, or $23,760 per year, in benefits. And with $1,240 from his savings, that would bring him to about $25,000 for the year.

However, someone still working at 75 may have delayed Social Security until age 70 for larger monthly checks. So your dad’s total income may be higher.

Running the numbers

Let’s say his monthly retirement expenses come to $2,800, requiring an annual income of $33,600. Let’s also say he’s getting about $2,600 a month from Social Security because he delayed his claim past his full retirement age of 66 — thereby boosting his benefits by 32% by waiting to take them at 70.

That leaves your dad with $31,200 per year. With $31,000 in savings, that gives you $1,240 per year, you still have a small shortfall to get to $33,600.

But if you can get your savings up to $60,000, a 4% annual withdrawal rate gives you $2,400 from your nest egg. Add that to $31,200 in Social Security, and you’re where you need to be.

Of course, this does mean doubling his savings. But it may be doable with some strategic moves. Your dad is 75 and is fortunate he has a grown child who cares about your financial well being — maybe your or another family member could allow him to move in for a few years to boost his nest egg. There may also be other expenses he can look into reducing.

Keep in mind, too, that he may have leeway to withdraw from his savings at a higher rate than 4% a year because he’s older. If you use a 5% withdrawal rate, $31,000 in savings gives him $1,550 per year. If you use a 6% rate, you’re looking at $1,860. And if you work with a financial advisor to maximize your savings and trim expenses, you may find that your dad doesn’t need to save so much more to get to a place where he can retire and cover his costs.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A 2024 CPP Investments survey found that Canadians think it will take $900,000 to retire comfortably, a 29% increase from the year prior.

But a 2024 Statistics Canada report revealed that the median nest egg that Canadians have saved for retirement is $573,040. So clearly, the typical retiree has a large gap to overcome.

If you’re retired with a $3 million portfolio, you’re clearly ahead of the curve. Not only do you have way more assets than the typical Canadian senior, but you also have more than the $900,000 per person that’s supposed to make for a comfortable retirement.

But you may be wondering if it pays to hire a financial planner to help manage your retirement portfolio. And the truth is, there are pros and cons to getting financial help.

Using a financial planner

If you have $3 million in assets, a paid-off home and no other major financial concerns, you might assume that you don’t need a professional to get involved. But there’s a reason 25% of Canadians have a financial adviser or planner, per research from CIBC and FP Canada.

The upside of working with a financial professional is that you’ll have an expert who isn’t emotionally attached to your money offering advice on how to manage your assets. That could be invaluable, especially if life ends up throwing you a curveball.

Things may be going well for you financially right now. But what if your life circumstances change, or your health declines and you wind up needing long-term care?

If you’re uninsured, you could be looking at spending anywhere between $3,500 to $30,000 per month for a home health aide, a Scotia Wealth Management report found. A financial adviser or planner can help you not only prepare for these types of costs, but manage them as they arise.

Also, while you clearly have a decent understanding of saving and investing to have amassed $3 million in time for retirement, there may be some blind spots in your portfolio. A financial professional can help address those and make sure your portfolio is set up to not only produce income, but withstand a major market event or a period of rampant inflation.

Furthermore, if you have $3 million, it’s feasible that you may be in a position to pass on an inheritance, and the value of $3 million today is not the value of $3 million in the future, especially if inflation soars. A financial adviser can guide you on estate-planning options so you’re able to make sound decisions for the type of legacy you wish to leave behind.

Finally, working with a financial adviser could help you feel more secure as you navigate your senior years; it takes the pressure off you to be the expert and to stay current.

Managing your finances solo

The obvious downside to working with a financial professional is that there is an additional cost involved. And that cost can vary depending on who you use, where you’re located and the fee structure your adviser employs. If you manage your finances on your own, you won’t have to pay a professional any fees.

Let’s say a financial adviser charges you a fee of 1% of assets under management. For a $3 million portfolio, you’re paying $30,000 a year for help you may not need.

Granted, because many financial advisers get paid as a percentage of assets under management, they’re motivated to grow your portfolio so they get paid even more. But once you’re retired, you may not need portfolio growth so much as stable income. And if you’re already getting that, there may be little sense in bringing in an adviser.

If you’ve been able to comfortably build and manage your portfolio all of these years, then you may be perfectly equipped to continue doing so — especially if you’re a savvy investor with a pulse on the market who understands the importance of diversification.

Furthermore, while a financial adviser can offer guidance on estate planning, you’ll typically still need an attorney to create a will or trust (or whatever tool you use to pass down an inheritance). So while a financial professional can perhaps steer you toward your ideal option, you’re probably going to be looking at a separate attorney fee anyway.

Before you make your decision, it could be worth sitting down with an adviser or two and seeing what they have to say. But if you’ve gotten to $3 million and are managing this well, you don’t necessarily need to hire someone for extra help at this point. Just be sure that before making any major money moves, you’re as informed as possible. You’re essentially your own adviser.

Sources

1. CPP Investments: Nearly 2 in 3 Canadians worry about retirement savings: survey (Oct 30, 2024)

2. Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security (x 1,000,000) (Oct 29, 2024)

3. Cision: Most Canadians are going it alone when it comes to financial planning: CIBC and FP Canada™ Poll (x 1,000,000) (Nov 27, 2023)

4. Scotia Wealth Management: Why aging at home is unlikely for many — and how to change that (Jan 9, 2024)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As Florida’s hurricane season kicks off, many homeowners in the state are anxious to know the fate of Florida’s proposed Fallen Tree Act. Looks like they’ll have to wait till the 2026 hurricane season.

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The bill was originally slated to take effect this July — in time for peak hurricane season between mid-August and late October.

But as the Talahassee Democrat reports, Florida lawmakers indefinitely postponed debate on the bill in order to discuss the state budget.

The Fallen Tree Act may or may not be reintroduced in 2026. If it is reintroduced and passes, it will shift liability for fallen trees onto the property owners whose trees fall.

For now, Floridians are still stuck paying for any damage on their own property caused by their neighbor’s tree — unless they can prove clear negligence on the part of their neighbor.

Debate over the Fallen Tree Act

Proponents of the bill believe it’s unfair for people to have to pay for property damage caused by their neighbor’s tree. Even if insurance covers the costs, each claim means higher premiums and paying a deductible.

Advocates of the Fallen Tree Act also liked the fact that it would grant homeowners the right to remove a neighbor’s tree if it was growing partially on their property without permission.

But as Medium reports, not everyone was in favor of the bill. Some argued that extreme weather events like hurricanes and tornadoes are beyond a homeowner’s control.

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The Florida Insurance Council expressed concern that the bill would lead to an uptick in litigation between neighbors that would, in turn, lead to more lawsuits against insurance companies.

Others warned that the Fallen Tree Act would trigger higher homeowners insurance premiums due to the aforementioned potential increase in lawsuits.

Finally, some critics worried the bill would discourage people from planting trees, leading to environmental impacts.

How Florida homeowners can protect themselves

One way or another, Florida homeowners need to prepare for property damage due to hurricanes this year.

The National Oceanic and Atmospheric Administrations predicts "above-normal hurricane activity" in the Atlantic, with 13 to 19 named storms.

Make sure you have good insurance coverage.

The cheapest home insurance policy may not offer the best coverage in the event of damage. Read your policy carefully to know what’s covered and what your deductibles look like.

Make sure you have enough saved up to cover your deductible in the event of fallen tree damage. Even better, save up an emergency fund that can cover at least three months of essential bills.

Look into removing trees on your own property

Most policies don’t cover tree removal until a tree actually causes damage. Even when tree removal is covered, there’s usually a limit of about $1,000 per tree, which doesn’t necessarily cover the entire cost of the job.

This Old House puts the average cost of professional tree removal at $200 to $2,000. The cost hinges on a number of factors including the size, type and location of the tree. Get estimates.

Talk to your neighbor about tree removal

While you can proactively remove trees on your own property to prevent damage, you can’t necessarily force a neighbor to do the same.

If there’s a tree on a neighbor’s property that’s threatening yours — say, because it’s dead or the branches have not been trimmed in ages — you should put something in writing to that neighbor expressing concern and asking them to handle the problem. Keep copies of that communication in case you need to prove negligence in the course of an insurance claim.

An alternative is to offer to split the cost of tree removal with a neighbor if you’re worried their tree will cause harm to your property.

Let’s say it costs $800 to remove the tree and you split it evenly. If your homeowners insurance deductible is $750, you come out ahead by spending $400 to address the problem. Not only does that save you money, but it spares you a potential headache.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Taking up residence in a mobile home park can be an economical means of putting a roof over one’s head.

But more than 50 families at County Road Mobile Home Park in Houston, Texas, were displaced after the land they were living on was sold, according to KHOU 11 News. Residents had until April 8 to move out, and some were forced to spend thousands of dollars to relocate.

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Marta De La Garza, who lived in the park with her family for five years, says she had to shell out $9,000 — $3,000 for transportation and $6,000 to set up utilities — to move to a new location.

"We had to pay for the people who moved the mobile home. We had to pay a plumber again. We had to pay for electricity again," she told the local broadcaster in a story published April 9. "It was a nightmare."

Moving costs may also not have been the only financial challenges some residents had to face. Here’s the story behind the challenging evictions, plus ways you can protect yourself as a tenant.

A horrible experience

Residents of County Road Mobile Home Park received eviction notices in September after the property was purchased by a company named Summit Acquisitions, per KHOU 11 News. They were first told they would need to vacate the property by the end of 2024, but that deadline was then extended until the spring.

The forced move has been devastating for several residents, including Frankie Schwarzburg, who says her trailer was damaged beyond repair during transport and is no longer habitable.

"I cannot live in my trailer," she told KHOU 11 News. "I’m out $15,000 and a home."

In addition, the broadcaster reports community advocates say some former tenants were mistakenly charged rent in March and April, even after leaving, while others have been kept waiting for their security deposits to be returned.

"They’re being charged for a place they can’t live anymore," Damaris Gonzalez of the Texas Organizing Project told KHOU 11 News.

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Former residents are calling on legislators to strengthen rights for mobile home owners. State Sen. Molly Cook told the broadcaster she’s introduced a number of bills aimed at addressing these issues.

"I don’t hear people talking about manufactured homes enough," Cook told KHOU 11 News. "The reality is that this is what makes the American dream accessible to so many Texans."

The broadcaster says neither the former property manager nor the new owners immediately responded to requests for comment.

Know your rights as a tenant

If you’re facing eviction, it’s important to understand your rights. You should know that while you can be evicted for failing to comply with the terms of your lease, your landlord can also choose not to renew your lease.

Different states may have different laws regarding evictions. In Texas, for example, you’ll typically be given a notice to vacate. This is not an eviction, and your landlord must give at least three days to vacate. If you don’t move out by that deadline, your landlord can file an eviction suit with the court.

From there, you may have to appear in court to try to state your case (assuming you want to stay in your home). After a judgment is made, either side has the option to appeal the decision within five days. If you lose and don’t appeal yet refuse to move, your landlord can ask the court for a writ of possession and you’ll then have 24 hours to vacate the property. If you don’t, your landlord will have the right to remove your belongings from the property.

It’s important to understand how the eviction process works. If you feel you need help with your case, you may want to consider consulting an attorney.

It’s also important to keep detailed records of communications between you and your landlord in an eviction situation. For example, if you’re being evicted due to violating a lease term and you can prove you didn’t, that’s something to bring to your eviction hearing. You should also document any interaction between you and your landlord where you feel your rights as a tenant were violated.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Being a stay-at-home parent can often be a thankless job.

From the moment you get up in the morning to the moment you go to bed, you’re either chasing after a child, preparing meals or doing some sort of household task — many of which involve scrubbing food particles off of a surface or item of clothing.

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And the worst part? At the end of the week, there’s no paycheck to look forward to.

That’s what inspired Amber Aubrey, a mom of two, to start charging her husband for the unpaid labor she performs around the house. She documented her decision in a hotly debated TikTok video that has since racked up over 4.2 million views.

"Ultimately, it does kind of make me the breadwinner in my household," Aubrey said in the video.

Why this stay-at-home mom wants a paycheck

The work stay-at-home parents do has real value — and researchers have actually put a price tag on it.

Beike Biotechnology found that stay-at-home parents of two children do about 200 combined hours of unpaid labor each month. The estimated cost? Between $4,000 and $5,200.

For Aubrey, charging her spouse for her stay-at-home duties boils down to feeling like she deserves financial recognition for the work she contributes. That’s why she bills her husband $2,700 a week for the work she does.

"If he wants to save money, he can help me do any of these tasks," she said.

Here’s a breakdown of Aubrey’s workload and the amount she charges:

• $20 per load of dishes (two to three times daily, five days a week)
• $140 for weekly laundry
• $120 for weekly bathroom cleaning
• $100 per floor cleaning (two to three times daily, five days a week)
• $800 weekly homeschool instruction for two kids
• $150 for weekly pickups and drop-offs
• $75 per weekly grocery run
• $50 for five weekly lunches and dinners
• $200 for weekly breastfeeding
• $50 weekly for sweeping

Many TikTok viewers were quick to applaud Aubrey for her bold stance.

"Know your worth, then add tax," wrote user K Briggs.

"I 100% support this," added another user named Niklovin. User Sharna Louise chimed in: "This is the best video I’ve seen on the internet; ever!"

Aubrey’s video even resonated with some male viewers. A TikTok user named gesseppiimuhseppe said, "Listen, as a guy, I’m here for this. I think most [of] these men need to be aware [of] how much their wives do."

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How couples can address “invisible labor”

Invisible labor is something stay-at-home parents take on regularly — and issues can arise when that work goes unacknowledged.

It’s not just the physical tasks that matter. There’s also the mental load — the planning, scheduling and decision-making that comes with managing a household and raising children.

Of course, not every household follows the traditional gender roles. But data from the University of Wisconsin-Madison finds that women still spend twice as many hours doing physical housework as their male partners.

Weight of the world

It doesn’t stop there. Allison Daminger, an assistant professor of sociology, found in her research that in 80% of opposite-sex couples, women shoulder most of the cognitive labor — things like managing family calendars, planning meals and checking on homework.

According to Bloomberg, economists at the Levy Economics Institute examined data in 2021 and found that for every $100 households spend on commodities, there’s about $65 worth of unpaid work involved — often done by the stay-at-home parent.

That same data set found that nearly 80% of all unpaid household work is done by women, with a total estimated value of $3.6 trillion annually.

That’s why couples need to have open discussions about how to financially support and recognize the stay-at-home role. That doesn’t have to mean every household needs to itemize tasks like Aubrey does.

But working partners should start by acknowledging the value their stay-at-home counterparts bring to the table. There are practical ways to make things more equitable.

For example, the working partner could contribute part to a spousal IRA to help the non-working partner save for retirement.

They should also consider the opportunity cost of a partner stepping away from their career. Resume gaps can add challenges when trying to re-enter the workforce and often lead to lower pay.

For couples with one stay-at-home parent, open communication is key — and so is gratitude. Even if a weekly paycheck isn’t in the cards, a regular and sincere thank you can really go a long way.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

When Cumming, Georgia, homeowner Venkat Garikapati’s roof sustained heavy wind damage in 2021, he filed a claim with his home insurance company, State Farm, to have it fixed.

However, State Farm only approved the replacement of 38 shingles and estimated the cost at $1,422.15 — less than Garikapati’s $2,500 deductible — and closed the claim without paying, according to Atlanta News First. But Garikapati’s roofer, David Garner, disputed the insurance company’s assessment.

"It was torn all to pieces," Garner told the local broadcaster of the roof’s condition. "More than 70 shingles were creased or missing."

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Garner, along with a public adjuster, spent years trying to prove to State Farm that Garikapati’s roof needed a full replacement to avoid further damage and leaking, reports Atlanta News First. State Farm kept denying the claim before finally approving a full roof replacement on April 25, 2024 — more than three years after the original claim.

"They are never shy on collecting the monthly premium at all, but to get this approved took quite a long time," Garikapati said.

Garner went ahead and did the work. But after the initial "actual cash value" check cleared, State Farm refused to pay the replacement cost in full, citing a clause in Garikapati’s insurance policy that stipulates a repair or replacement must be completed within two years of the date of loss to receive additional payments. As a result, Garner is out $12,000 — and he blames State Farm fully.

Local roofer in the lurch

When a contractor does work on a home and isn’t paid for it, they may be able to place a lien on the home. However, Garner doesn’t want to do that to Garikapati.

"It’s not the homeowner’s fault that this is taking place," Garner said.

Despite the clause in Garikapati’s insurance policy, Atlanta News First reports an attachment to State Farm’s approval estimate stated: "Replacement cost benefits will be issued contingent completed of roof replacement and submission of photos, submission of photos, certificate of completion and or signed contract agreement with service provider."

But when Garner submitted the paperwork, he said State Farm wouldn’t pay up.

"What am I supposed to do?" Garner asked. "I’ve already built the roof. I paid for the materials. I paid for the labor. Everything’s done."

Garikapati filed a complaint with the Georgia Office of Insurance and Safety Fire Commissioner in January, per Atlanta First News, but that went nowhere.

“The whole reason this claim took a long time to get approved is because deny and delay, deny and delay,” Garner said.

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Atlanta News First says it looked at recent complaints filed with the commissioner’s office and found that State Farm, the state’s biggest insurer, had 892 complaints in 2024, up 126% from 2022. It also found that Allstate had 770 complaints, up 77% from 2022, while Progressive had 557, up 49% from 2022. The office did not supply information about the results of complaints.

Garner feels like he’s out of options — he doesn’t think it would be financially feasible to sue State Farm, and he’s not interested in holding Garikapati responsible.

"He was operating in good faith, just like I was," Garner said.

A spokesperson for State Farm told Atlanta News First "we believe we have provided every benefit available to the customer within their policy."

What to do if your insurance company comes up short

So, what can you do if your home insurance company comes up short on funds or doesn’t pay?

First, you should read the terms of your policy carefully. What happened to Garikapati above wasn’t exactly his fault, but it seems the fine print of his policy provided the insurance company with an out. Familiarizing himself with those details may have prevented the situation above from occurring.

One thing you’ll want to check your policy for is exclusions. There are certain things your insurer may not pay for, which should be outlined in your policy agreement. It’s also important to read the terms of your claim approval carefully to make sure you and your contractor are in compliance.

But from there, if you believe an insurer isn’t paying out like it’s supposed to, you should collect evidence. Document all of the work that was done so you can show if it was in accordance with what your insurer approved. That means taking pictures and getting a write-up from your contractor detailing the work performed.

Your insurer may have tools in place for claims and payment denials. Follow those once you’ve gathered your documentation. If that doesn’t work, you can try to file a complaint with your state’s insurance agency. If that doesn’t work, you may want to seek legal guidance.

To be clear, there’s a difference between your insurance company denying a claim and refusing to pay following an approval. There should be no expectation your insurer will pay out on a claim that’s been denied.

Also keep in mind that any contractor you hire may not be as understanding as Garner, and you don’t want yours to come after you for their money. So, you should do all that you can to ensure everything is above board.

What to read next

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• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Close to retirement with a nest egg of more than $2 million? No wonder you’re thinking about retiring! To put this in perspective, you’re 58 years old with a $2.5 million saved in an investment portfolio — this is more than four times the savings for the average Canadian. According to Statistics Canada, the average nest egg is closer to $573,040.

But wait, there’s more! Once you’re 60, you can start collecting payments from the Canada Pension Plan (CPP), albeit at a reduced rate. If you opt to hold off collecting CPP (you can delay until age 70), the more government payment you’re entitled to each month.

Based on these factors, there’s a really good chance that you might be able to live off of the dividends produced by your investment portfolio without touching the $2.5 million principal, but you still need to manage your portfolio and make smart money decisions.

Pay attention to diversification to keep your dividend income up

With a dividend yield of at least 3.2%, a $2.5-million portfolio could easily generate $80,000 in annual dividends. That kind of yield is doable if you diversify beyond a basic broad-based exchange-traded fund (ETF) and focus on stocks and other assets with higher-than-average dividends.

For investors comfortable with picking and trading stocks, keep in mind that over time a portfolio loaded with growth stocks can experience more volatility due to market growth. For instance, the value of specific stocks in your portfolio can grow so much that the portfolio is overweighted with certain holdings or assets. Also, companies experiencing rapid growth and accelerated gains don’t always pay high dividends because they reinvest their profits to fuel growth and boost stock prices. Plus, companies are not obligated to raise dividends over time, nor are dividend increases guaranteed to match inflation.

For that reason, you need to keep tabs on a portfolio of dividend-paying stocks. A good bet is to rebalance your portfolio on a quarterly basis — either on your own or with a financial adviser.

Another good option is to add other income-generating asset, such as REITs, or real estate investment trusts. REITs are a great choice for those seeking regular income since REITs are required to pay out 90% of their taxable income to shareholders each year. That means adding REITs into your portfolio will help keep your monthly income stable and allow you to avoid dipping into the principal to pay living expenses during your retirement years.

Keep an eye on inflation

Inflation could impact your investment income dramatically. For instance, if you collect $80,000 in income from your portfolio when you’re 60, and collect the same amount when you are 80, inflation over the years will erode the purchasing power of that money and force you to adjust your spending as time goes on — or dip into your principal investment amount.

The Bank of Canada and the federal government has long targeted a 2% annual inflation rate, the midpoint between 1% to 3%, but even a 2% inflation can erode the spending power of $80,000. And things can happen. Remember that the stimulus policies amid the pandemic rapidly drove the cost of goods and services above 2% and other circumstances can always prompt quick price increases.

Consider taxes

Consider tax implications in your dividend calculations. If the dividends are distributed in a non-registered account, you’ll have to pay full tax on the earnings. The good news is the Canada Revenue Agency does tax dividend income more favourably than other forms of income — as long as the dividends earned meet the CRA’s criteria.

Another option is to shelter your earnings in a registered account, such as a registered retirement savings plan (RRSP) or Tax-Free Savings Account (TFSA). Just be sure you understand when and where it make sense to shelter dividend income in a registered account. To help

On the other hand, if you have a traditional RRSP, you only pay taxes on dividends when you withdraw them.

Your taxes will depend on your filing status and income, as well as what tax thresholds look like in the future. If you’re a single tax filer and your income is between $57,375 and $114,750, then you’re looking at a tax rate of about 7.56% for eligible dividends and 13.19% for non-eligible dividends. Remember that tax laws and rates can change over time. It’s a good idea to consult a financial adviser to plan your short- and long-term retirement strategy.

Sources

1. Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security (x 1,000,000) (Oct 29, 2024)

2. Tax Tips: Canada 2025 and 2024 Tax Rates & Tax Brackets

This article I’m 58 and plan to retire in 5 years with a portfolio worth $2.5 million. I expect annual dividend income of $80K but worry this strategy too riskyoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

There’s nothing wrong with selling a property you own. There’s something very wrong with forging documents to transfer a property to your name, selling it, and pocketing the proceeds.

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The latter is exactly what Alba and Jarin Martinez are accused of doing.

The Texas husband-and-wife duo are accused of falsely claiming ownership and selling properties they didn’t own, according to an April lawsuit filed by the Harris County Attorney’s Office.

The couple is being sued for more than $1 million in damages and is said to have falsely claimed ownership of at least 35 properties in Harris County, reported ABC13.

A judge signed a temporary injunction to prevent the Martinezes from filing documents related to these properties, according to KPRC 2.

But Alba Martinez has been accused of violating the court order in two instances, including one reportedly caught on camera, and the county is asking that she be held in contempt of court.

Caught on camera?

KPRC 2 says it got surveillance video footage of Alba signing a contract on May 22 to sell a property in the Acres Homes neighborhood to Sasser Land Group, a land acquisition company.

Court records show that the property in question was owned by a couple who passed away and left it to their heirs. The Martinzes allegedly used a fake warranty deed and affidavit of heirship to attempt to pass the property off as their own.

Kenneth Sasser, who runs Sasser Land Group, said he was suspicious from the start, when Alba offered up the property for just $25,000.

“She kind of framed it as she was strapped for cash, that she was going to lose her property,” Sasser told KPRC 2 News. “She claimed that she was behind on her taxes.”

Eventually, Sasser agreed to pay $132,000 and prepared a contract for Alba. He said she had a chain of title, warranty deed and a receipt for a recently paid property tax bill.

But once Sasser and his team visited the property, spoke with neighbors and saw news coverage of the Martinezes, they realized the transaction may be fraudulent. Martinez told Sasser’s team the property was an inheritance from her late stepfather, but attorneys said there is no supporting evidence to back up this claim, according to KPRC 2.

Sasser, meanwhile, is happy he did his due diligence.

“It could have damaged the reputation of my business," he told KPRC 2 News, describing Martinez’s actions as “ruthless and heartless." And he hopes the Martinezes are held accountable for their actions.

Sasser’s company has since filed a report with the Houston Police Department. No charges have been filed yet, but investigators are working on the case.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to protect your property from real estate fraud

In 2023, the number of real estate fraud complaints filed totaled 9,521, according to the FBI’s Internet Crime Report.

Unfortunately, it appears all too easy for criminals to forge documents that make them appear to be the rightful owners of a property, allowing them to potentially sell it out from under you. It’s important to be vigilant to avoid becoming a victim.

First, never leave your property empty for long stretches of time. Properties that don’t seem to be lived in can be easy targets. If you own a second home, have a neighbor check in from time to time, or hire a property manager.

It’s also a good idea to set up a Google alert for the address of your property if it’s not one you live in full-time. That could alert you to a fraudulent listing of your property.

In this regard, be sure to monitor property records in the county where your property is located. Some counties even offer a title alert system you can sign up for so you’re notified of filings right away.

You may also be able to purchase title insurance that protects you from home title theft. Usually, though, these policies only protect you from theft that occurred before purchasing your property, not after.

Consider placing your home in a trust, which can also be a beneficial move from an estate planning perspective. This way, the trust becomes the property’s owner. Forging documents can be more challenging and complicated when a trust is involved, which may offer you some degree of protection.

Finally, ensure that you safeguard your personal information to prevent both property and general identity fraud. Never give out your Social Security number unless absolutely necessary (such as when filling out paperwork for a new job), and regularly monitor all your financial accounts, including bank accounts and credit cards.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.