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TODAY AND TOMORROW FINANCIAL TAX LIFESTYLE RETIREMENT & ESTATE PLANNING SEMINARSRon Rousseaux is a well-known, successful and respected Independent Financial, Tax, Retirement and Estate Planner located in Burlington. He is the Leader of the Today & Tomorrow team with a background encompassing Finance, Revenue Canada, Private Industry, Technical Advisor and one of a few Certified Senior Advisors in Canada. Ron RousseauxVoted Best Financial Planner:M.C.I, C.S.A., T.E.P. Burlington: 2001 to 2010 Oakville: 2006, 2008 & 2010 Flamborough: 2005 to 2010Fully IndependentRETIRED OR THINKING ABOUT RETIRING?Over the last couple of months, I have been writing articles Generation X and Y are too small of a group to absorb the tax increases, their incomes are lower and they require two incomes about the coming Retirement Problems. The depth and length of to survive.the coming problem has never been dealt with before in North America, let alone Canada. Are we looking at higher Income taxes?- Are we looking at higher property taxes?- Are we looking at some inflation- higher medical Lets look at some recent headlines: Burlington Post Joseph costs or user fees?-and maybe a return of Estate Taxes?- you know Brant wait times worst in the country. Federal Election- We will that people are now living well into their late 80s and 90s and our fund Health Care in Canada with a 6% increase per year up to 2014 government systems were never built for that longevity and cost.and then negotiate with the Provinces. This amount will be 2 billion dollars. My response: Joseph Brant Hospital, the administrations More than ever before you must look at ways to guarantee that answer was the correct one- they cannot handle the numbers. your capital can provide an income. On May 14th, I am holding a The demographics of Burlington is one of an aging population and SEMINAR which deals with guaranteed income alternatives that even a 200 million dollar expansion will not provide the requiredyou need to look at whether youre currently retired or looking beds- not today and not tomorrow. at retiring during the next 20 years. Is it time to come out of the Casinos?Federal Election: All of the leaders must live on another planet? They Topic # 1-Guaranteed Income Products:are talking about increasing the Federal Government contributionto Health Care by 6% up to 2014, 2 billion dollars. From a November These products were first introduced in 2006 and right now most Globe and Mail article as of 2015, Ontario Health Care deficit could insurance companies and banks have one available. Are they all be 15 billion dollars and increase each year for at least 20 years. the same? No, they are not. I will be talking about two of them (Baby Boomers retire over the next 20 years and are very stubborn as I will only use those companies that have a double AA creditand as such living 30 to 35 years after retirement.)rating and above. Since 2006, I have heard many negative comments about these products and yet throughout the crash of 2008/2009 Ontario spends almost 0.45 of every dollar on health care and I had many people say how happy they were to have this product that is with 10% of our population retired. Please do the math- as because of its guarantees. Ontario is going to have 20-26% of its population being retired, where do the dollars come from?Most often heard critisisms of Guaranteed Income Products: I am not trying to alarm people but just bringing to your attention Comment # 1:the fact that the next 40 years of Retirement will not be the same Why would you need the bonus of 5%? If I cant earn you 5% as the past and you can expect a lot of volatility. Remember some every year, I should not be in the business. Reply- this is often said basic current problems:by someone who is not licensed to offer the product or does not understand it. The bonus is provided every year that you do not 70 to 75% of Canadians have little or no savings.take an income. The bonus provides you with a minimum Of the 25 to 30% of Canadians that do contribute to an RRSP it annual increase in your guaranteed income down the road is less than $2,000 per year.regardless of the markets. I will repeat that the Bonus provides you with a minimum annual increase in your guaranteed income down 65% of Boomers have no company pension.the road regardless of the markets. The average Canadian debt ratio is now over 148% and rising.I.E. Person Age 55- Invests $100,000.00 Boomers are going to rely on their homes to provide them with At Age 65- The Guaranteed Withdrawal Balance with the bonus retirement equity. We have not had a Real Estate correction since only is $159,691.85. (Yes it can compound.)1989 at which time Real Estate came down 40 to 50%. Are we 5% of the new Guaranteed amount provides you with minimum going there again? Guaranteed Income of $7,984.59 for life.continued on page 25CELEBRATING OUR 18TH ANNIVERSARYwww.insideHALTON.com OAKVILLE BEAVER Thursday, May 5, 2011 24