How Much Risk Can You Tolerate? Part 2 of 3

 Last month we discussed how much risk you could tolerate depending on your life situation.  This month we will consider other risks to which each of us are exposed:

 Market Risk:  We all have experienced the effects of a volatile market and the havoc it can cause both financially and emotionally.  Since mid 2008 the market has experienced “saw tooth” rates of return and many have fled the equity markets in an attempt to avoid this volatility and the risk that comes with it.  For those that were in the process of retiring and were still in equity funds, many had to put retirement on hold.

Business Risk:  It has been estimated that those who own and operate businesses have 50% or more of their wealth tied up in the venture.  This can be devastating to a retirement plan or financial security if the business should encounter financial difficulties or, in the extreme, fail.

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How to Prevent Family Cottage Feuds

By Brenda Spiering, Editor, BrighterLife.ca

We’ve all heard the horror stories – families torn apart by fighting over the inheritance of their family cottage. The place that used to bring them all together has suddenly become such a source of conflict it’s driving them apart.

Passing on the family cottage isn’t easy. Why? Because, for most, it isn’t just a piece of real estate. It’s a place filled with fond childhood memories of fishing and swimming and lying out under the stars on a warm summer night. But it takes more than charged emotions to cover the ongoing cost of maintenance and property taxes.

What’s the best way to pass on the family cottage? You need careful planning and a sound financial strategy that includes the following two steps:

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