Long-term care essential to retirement plan

Money Tips

Long-term care essential to retirement plan

If you fall within the Baby-Boomer or Gen X groups, you'll count among 9.8 million senior citizens by 2036, according to Statistics Canada. And if you're currently between the ages of 40 and 60, you've started planning for retirement by putting money away in an RSP or pension.



For some, this is the extent of their planning. Not many people consider what might happen if they become sick with a chronic illness. Current research shows that chronic illnesses like Alzheimer's will be become more prevalent over the next 30 years. In fact the Alzheimer Society of Canada predicts that 1.2 million Canadians will suffer from dementia by 2038, which means that the need for long-term care services will increase. Currently, assisted living services can cost up to $50,000 a year. In the next 20 to 30 years, it's expected that the need and cost for these types of facilities will increase substantially.



But taking time now to plan ahead is key to ensuring that you and your loved-ones won't become financially burdened if you lose your independence during retirement. Here's some facts about long term-care insurance:



What is long-term care insurance?

Long-term care insurance protects the insured and their family from financial hardship due to unforeseen medical and/or living expenses related to critical illness, which results in the loss of independence.



How much does it cost and how long would I need to pay?

The cost depends on several factors like your age, health, the insurance provider and the type of policy that you select. Some policies are set up with 20-year or lifetime periods. The actual term of the insurance will depend on the supplier and the policy.



Who's eligible for this insurance?

Anyone between the ages of 18 and 80 is eligible. However, people in their 40s and 50s should consider including it as part of their retirement plan.



Under what circumstance would I receive a payout from this insurance?

During your retirement, the insurance would payout if you became sick with a chronic illness that prevented you from living independently. This is determined if you are unable to eat, dress, move, use the toilet or bathe by yourself.



What does long-term care insurance cover?

Once it's been determined that you're no longer able to live independently, long-term care insurance will help pay for:

· Expert medical advice

· The ability to live at home with in-home and/or respite care

· Assisted living and long-term care facilities

· Senior day-care

How is it paid out?

Long-term insurance pays a tax-free monthly benefit that can be used to pay for any type of service that you choose. There's no need to submit receipts or wait for approval.



Which policy offers the most appropriate coverage?

Speak to your financial advisor to find out what would be best for you. That can only be determined once a full financial analysis is completed.



John Scholl

Financial Advisor - Desjardins Financial Security Inc.

CFP, CLU (Chartered Life Underwriter), CGA, B. Math., EPC

W – 416 743-1239

C – 416 731-3660



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New Mortgage Rules for 2011

New Mortgage Rules for 2011

On Monday, January 17, 2011, Jim Flaherty, Minister of Finance announced three new mortgage rules aimed at reducing some of the risk in the Canadian mortgage market after mounting concerns over rising consumer debt levels in Canada.

First, the maximum amortization period for a government-insured mortgage was lowered from 35 to 30 years.

What this means is that a typical $300,000 mortgage with a 5% interest rate will see monthly payments increase by $97.00 per month from $1,504 (35 year amortization) to $1,601 (30 year amortization) and result in a total $55,404 interest savings over the life of the mortgage. This rule is effective March 18, 2011.

The second change will lower the maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% of the value of their homes. What this means for the consumer is that a typical home valued at $300,000 will allow a homeowner to access up to $255,000 at the new 85% loan-to-value ratio, while previously they would have been able to get up to $270,000 at the 90% rate. The changes will also take effect on March 18, 2011.

The final change will withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers. This new rule will take effect on April 18, 2011

Real Estate For SaleIgor V. Futrega, Sales Representative ~ RE/MAX 2000 Realty Inc., Brokerage ~ 647-502-2727GTA Real Estate

Real Estate For Sale Ian V. Futrega, Sales Representative ~ RE/MAX 2000 Realty Inc., Brokerage ~ 647-502-2727GTA Real Estate

Real Estate For SaleIgor V. Futrega, Sales Representative ~ RE/MAX 2000 Realty Inc., Brokerage ~ 647-502-2727GTA Real Estate

Real Estate For SaleIgor V. Futrega, Sales Representative ~ RE/MAX 2000 Realty Inc., Brokerage ~ 647-502-2727GTA Real Estate

Real Estate For SaleIgor V. Futrega, Sales Representative ~ RE/MAX 2000 Realty Inc., Brokerage ~ 647-502-2727GTA Real Estate

Real Estate For SaleIan V. Futrega, Sales Representative ~ RE/MAX 2000 Realty Inc., Brokerage ~ 647-502-2727GTA Real Estate

Etobicoke Executive Townhouses

Both the empty nesters downsizing their homes and first time buyers are actively looking at both freehold and condominium townhouses that are at and near major transit hubs like the Islington and Kipling Subway Stations.


Get Sold prices for the last 6 - 8 month period. Ask about current unit availablility. Map where these complex's are located.

Closest to the Islington Subway station is the freehold townhouse grouping at Six Points Road and Islington Ave. There is a maintenence fee for the servicing of common elements. Furrow Lane has approximately 90 units in total. that are simply divided into two styles, garage accessed from the frontgarage from the back (underneath your patio)

Van Dusen Blvd., is host to a larger townhouse complex with 3 municipal address'.Shires Lane and Van Dusen. This complex fronts onto Fieldway Rd. with four models ranging from 1400 square feet to 1900 square feet. Built by Dunpar Homes.

Briarly Lane Dundas Street at Islington (Just east of Montgomery) is a small infill complex with 26 units built approximately 12 years ago. Briarly Lane boasts a unique and favoured location both historic and functional for transit access.

Tyre Road, Islington Village Estates is a hidden and desireable complex accessed from Renown Road. A small complex of 32 residences built by Moldenhauer Developments.

At Evans Ave., between Islington and Royal York Road, is a complex comprised of three streets, San Remo Terrace, James Stock Path and Superior Creek Lane. This original complex is south of the QEW. Units average apprximately 2000 sq. ft. All are built on a garage main floor plan with family room in back. Most have walk outs to their yards.9 Except for Evans Ave units with Patio's over garage)

This complex is now being expanded by Dunpar Homes with their developement of Oxford Street. This complex is scheduled for occupancy in late 2008. Islington Village details. Site visit August 2008, There are 50 remaining units.

Oxford Street is located at Grand Avenue south of the Queensway. (This is immediately adjacent to the Mystic Pointe Community)

Yachters Lane and Legion Road are home to a small freehold executive townhouse complex that hosts 31 units, known as Bal Harbour Village.

Located at Mendota Road and Dalesford is a new complex of 39 freehold townhouses constructed by Merkley Homes and named Brownstone Lane. Tastefully appointed with premium features, well designed site plan with two car garages, and trimmed with granite inside and copper covered porticos, its sure to please.

Mississauga is not left out in the Executive Townhouse market. A new development in central Mississauga near Square one is placed in the downtown core, with a park and court like setting. Shipp-Place Townes is a small complex of 69 units that are condominium townhouses, ready for occupancy in late 2008.

Eagle Ridge has been around for 20 years, located at Erin Mills Parkway and Burnhamthorpe Road. This gated community has strong appeal for mature buyers who appreciate the bicycle and walking paths along Mississauga's park system, yet the convenience of having shopping an a bus terminal immediate nearby. There are 100 townhouses, plus the two high rise buildings, the Nevada and Eagle Ridge.

For more information please contact Ian Futrega @ 647-502-2727 or  E-Mail igor416@gmail.com

Our W06 Real Estate Market Watch

The W06 grid reference for the Toronto real estate board takes in a number of family residences namely Alderwood, Mimico, New Toronto, Longbranch, and more recently the entire condominium new construction phenomena along Lake Shore and Marine Parade Dr.

The Lake Shore at Superior Ave., is not exempt from a revitalization with the announcement of the Mimico by the Lake named Eleven Superior by Davies Smith .

From the Toronto Real Estate board statistics we have learned that in the W06 grid there were186 active listing ( Homes and condos for sale) of which 56 were new listings added in December and 58 of those sold.

Complete Market Watch Watch Details

In greater detail there were 36 active listings (detached homes) of which 13 were sold within month at an average price of $ 428,419. The average home selling price in 2010 was $431,463 – up nine per cent in comparison to the 2009 average selling price of $395,460.  In December, the average annual rate of price growth was five per cent.

The condo suites along the Lake Shore did slightly better on average with 136 active units for sale with only 36 sales. That seems a very low number of available and sold units given that there are in excess of 6,000 condominium suites effective 2008 source Humber Bay Shore Condominium Association The average condo sales price was $ 291,403.

Exact and specific address details can be provided if you email igor416@gmail.com or simply call 647 502 2727.

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