Money, Money, Money

Tuesday, July 13, 2010
In my line of work, money is important. In fact, it’s pretty much the core of everything we do in our office. And nothing scares me more as I get older than not having any.


I work all night, I work all day, to pay the bills I have to pay
Ain't it sad
And still there never seems to be a single penny left for me
That's too bad
In my dreams I have a plan
If I got me a wealthy man
I wouldn't have to work at all, I'd fool around and have a ball...


You see, in my office, one of our core areas of focus is pensions. I know how much the average Canadian will need to retire, how little the Canada Pension Plan will actually give you when you finally stop working (way less than you might be banking on), and how completely unprepared most Canadians are for retirement. I am scared. Not for the millions of my fellow Canucks who are going to be in for a rude awakening when the decide to quit the work force; I’m scared for myself.


Money, money, money
Must be funny
In the rich man's world
Money, money, money
Always sunny
In the rich man's world
Aha-ahaaa
All the things I could do
If I had a little money
It's a rich man's world


I have it better than most because my employer provides with a pension which is guaranteed through provincial legislation to be there when I retire. It’s not going to be much but it’s something; something the average worker unfortunately cannot rely on. Because of my job, I know about RRSPs, investments, LIRAs, LIFs, the differences between defined benefit and defined contribution pension plans. Every day, I’m exposed to the repercussions of not saving enough for your own retirement. It’s stunning to realize just how many people are relying on the government to take care of them when they’re old.


A man like that is hard to find but I can't get him off my mind
Ain't it sad
And if he happens to be free I bet he wouldn't fancy me
That's too bad
So I must leave, I'll have to go
To Las Vegas or Monaco
And win a fortune in a game, my life will never be the same...


So, what’s the benefit of having all this knowledge? Well, I realize that I should have begun saving for my retirement back in my 20s, for one thing. They really should start teaching kids about money and saving in elementary school. Financial literacy is highly underrated. We only need to look at what’s happened to countless numbers of families around the world during the last few years of economic turbulence. I’ve been frightened into starting an RRSP. As well, this year, I took advantage of the new Tax Free Savings Accounts and started one of those. Slap on a Canada Savings Bond account. While there’s not much money in any of these yet, it’s a start.


Money, money, money
Must be funny
In the rich man's world
Money, money, money
Always sunny
In the rich man's world
Aha-ahaaa
All the things I could do
If I had a little money
It's a rich man's world


I’m not worried so much about myself anymore – I’ve at least taken some steps to help myself out and I’ve still got about 30 years worth of saving before having to dig into any of these. Hopefully that’ll be plenty. No, I’m more worried about Mommikins. She has a small RRSP going but nothing else. She’s in for a bit of a wake-up slap in a couple of years when she stops working. Guess who gets to take care of her then? Hmmm, likely me. Wait…suddenly I’m afraid once again. Help.

4 comments:

27thstreet said...

Was it George Bernard Shaw who commented that lack of money is the root of all evil?

My father used to say, "Rich or poor, it's nice to have money." He also commented that "Robin Hood was right...not much use robbing the poor."

sp said...

I wish I had started saving in my 20s, but saving what?! I had so little money then, and was going to school. Maybe it's been a late start for me, but better late than never, right?

Milla said...

Being rich I am sure is not always a good thing, but I'd like to try it just once!

kelly said...

RRSP and TFSA? Is there a reason you do both? Are they for different purposes? What do you put your TFSA in

Sorry financial questions are personal, just curious

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