CPP Rules

New CPP Rules

Here’s a reminder about some good news about Canada Pension Plan benefits. As of January 1, 2012, you no longer have to stop working to draw CPP. You can simultaneously receive and accrue CPP benefits between the ages of 60 and 70, which means you have increased potential to improve your retirement finances.

The old rules stipulated that you had to stop working in order to collect early CPP benefits. As of January 1 of 2012, that condition no longer applies.

Money Lessons My Kids Taught Me

My family reserves one night a week for just us.  We try not to book anything else so that we can do an activity together, like swimming, playing board games, and sometimes holding a family council.

This past week I was taught an important lesson concerning how to teach my kids. It came in 2 parts.

Part 1:  For our family night my wife and I decided to help teach our children about budgeting and saving money.  We went through a brief discussion about separating their allowance (based on chores done properly) into spending, savings, and long-term savings.  We used lots of examples of things they could save for that would take a few months to do (iPod Touch, horse riding lessons...).  We tried to emphasize that by saving some of the spending money they would achieve their goals more quickly. We then decorated 3 boxes for each child, giving them a place to store their money as they saved it for the 3 different purposes.  I though it went pretty well, until we were starting to clean up and the 3 oldest immediately asked if they could go to 7-11 to buy a slush.  It was a "slap my forehead in frustration" moment.

The Story of 4 Little Pigs

Once upon a time there were four little pigs, brothers all, who decided to head out into the world and build their own homes.

The first little pig didn't want to spend much time or money on his house as there were many more enjoyable activities he could be doing.  He hastily built a frame, found some straw and hay in a nearby field, and put it all together one morning before heading out for a round of golf with his buddies and then an all-nighter playing Pinkeneye 007 on his porkstation 3.  He laughed as he walked by his brothers' yards and saw how hard they were working on their homes. 

The second little pig didn't want to spend any money on his house as he wanted to save as much he could for retirement.  He was afraid that he might have to live in a pig pen if he didn't have enough money saved for his senior years, so he never spent anything extra.  He didn't have any experience building a house, but he found some free plans at the local library, gathered the sticks from discard bins at local wood yards, and found some used twine at a local post office.  He spent several days putting the house together, an activity made more difficult because so many of the sticks were crooked and the twine often broke.  When he was done he went to Cost Club to eat the free samples as a reward for how little his house cost him.  He shook his sadly as he walked by his brothers still building their homes, knowing that they had spent more money than he had, but he felt sorry for them wasting all that money on their houses with retirement only a few decades away.

Lessons From Pigs, Truckers And Overtime

Pigs:  One of the first lessons I learned was the importance of work.  My dad believed having animals and chores would be good for us kids, and those chores were what we did because we lived under his roof.  We were also given the opportunity to buy and raise animals.  I bought 4 pigs, took care of them (fed, cleaned the stalls, watered…) and sold them after about 12 months.  After totaling the costs and paying my dad back for the feed, I barely broke even. 

After some bitter complaining about all that work for nothing, my dad simply said “If you had fed the pigs every morning and night, cleaned their stalls out more often, and always made sure they had water, you probably could have sold them at 8 months for the same price.  By not doing those things properly, it took longer for them to gain weight and increased your costs.  Do it right next time and you will make money.”  Hard lesson for a 14 year old to learn.  I bought more pigs, did a better job at caring for them and made some money off them.

Graduation Speech For Today

Rick Spence has written an article in the Financial Post about what he would say to grad today if he were asked to give the key note address.  Rick is a Marketing Consultant specializing in helping small businesses.

You can check out his whole article in the link.

A few highlights:

You are a free agent
You are a small cog emerging from a big bureaucratic machine. Most of you will soon exchange your student number for an employee ID badge. But you don't have to be a cog. Think of yourself as a free agent, choosing where and how you work. A job is not your life, just a contract. Many new opportunities will present themselves. Some will be dressed as job offers; others disguise themselves as business opportunities, bad bosses, new technologies or career roadblocks. To stick with one job or one employer is to settle for a