About: Kathryn Jankowski

Kathryn Jankowski is an accredited Financial Divorce Specialist (FDS), a Certified Financial Planner (CFP®) and an Accredited Family Mediator (OAFM) with over 30 years of experience in the financial services industry. Motivated by a passion to help others, she combines her financial expertise with her first-hand experience of divorce to offer clear, objective and personalized guidance during what is often a stressful and complicated process.

Recent Posts by Kathryn Jankowski

Free Financial Planning?

Persistent economic uncertainty continues to weigh heavily on the minds of employees whether it be concerning job security or whether they will be able to fund their own retirement.  When the economic bear cycle began there were a myriad of media articles voicing concern for the retiree, however, now that the cycle has been so long and...

Why “Retirement” Is Offensive

Lisa Taylor has graciously accepted an invitation to be be a guest blogger to Financial Smarts.  Lisa has been invited to speak at HRPA in 2013.  Lisa's insight concerning the changing demographic and it's influence on personal careers is so insightful I urge you to read on..... Lisa Taylor By...

What Can Your Money Do For You?

I don’t know if you remember the investment world in the mid-90’s? The media focused on the lack of value being offered by their investment advisors advocating that anyone could pick the best stock picks. The local papers even had a stock-picking, dart throwing contest to see how dart throwing fared against the professionals selection of...


Urban Retirement Trend?

Over the course of the last (almost) 30 years of my advising clients I have seen many different scenarios when it comes to lifestyles and solutions to financial issues.  So much so that nothing seems to really stick out as being anything truly unique but, on the other hand, not many of my clients are...

Eldercare and Your Financial Plan

[caption id="attachment_199" align="alignnone" width="300"]Marcy Ages B.A., CIM, CFP, CPCA, CLU[/caption] Today I am hosting a blog entry by Marcy Ages.  Marcy's specialty, as a Financial Planner, is planning for aging.  Please note that after the blog post there is information about an event that Marcy is hosting...

Should you help the kids and compromise your retirement?

Home prices in Ontario up 17% in four years

OK, so the kids are growing up and you want to help them start their adult life.  Maybe your motivation is somewhat altruistic?  Helping the kids out helps them become more independent ~ maybe even to the point of moving out?  After the financial dependence of growing up and educating them and even maybe paying for a wedding do we still need to do more?  There are a few things to consider…..

First, can you afford to be helpful?  Life is so expensive these days.  Depending on where you live it can cost quite a sum to own your own home and save for your retirement years.  Housing in the city of Toronto, for example is getting quite pricey.  Have a look a this article for some comments on recent housing trends. http://www.thespec.com/news/article/766778–home-prices-in-ontario-up-17-in-four-years

Although, I’m sure housing in the city is far above the national average of $369,339 then looking for the down payment can be a daunting task. Saving 25% is looking at a net cash savings of about $93,000 which might take kids, starting out at entry level jobs, some time to save for.

Now that we have ascertained that it might be hard for the kids to take the initial step of being on their own let’s look at your current situation. People often ask me how much one needs to save for retirement but I often answer…it depends on what you want to do in your retirement years.  If you want to travel then you might need more that the person who is content to sit and watch TV all day long.

Either way, if you live in the city of Toronto (or similar from a perspective of housing costs) then your home is probably at least $500,000 and then you want to retire at the age of 65.  Assuming that you will live to age 90 that leaves you with 25 years of savings for income replacement needs.  How much to you anticipate spending a year?  Assuming the mortgage is paid off and you have no liabilities, would it be reasonable to assume that you would need $60,000 in after-tax money?  So what’s $60,000 times 25 years? $1,500,000!!! So if you house is worth $500,000 and you need $1,500,000 to float your retirement then you need about $2 million in net worth to retire!  That’s a lot of dough!  (I realize that you may get some return on investment and you will also be receiving CPP and OAS and that’s where a financial plan is necessary.  If you are lucky you also have a pension plan to help with your cash flow needs).  Regardless of your supplemented income sources you will still have to save a bundle to retire in a lifestyle that is comfortable.

When we take airplane flights the steward(ess) tells us that in the case of an emergency to place the air bags on ourselves and then on any young children.  The reason is that we have to be OK so that we can help them.  I think that, as parents, we want to help our kids but we have to be OK to do so or we aren’t really doing them any favours.  So my advice is to ensure you take the time to do a financial plan before you give away your money to your kids.  After all, you don’t want to be living in their basement at the age of 75, do you?

Bonds~ My relationship with the fixed income market!

Bonds have an inverse relationship to the interest rate environment so if interest rates increase the value of the bonds in your portfolio decrease.  Suddenly, that once conceived safe haven can help to throw the value of your portfolio out of whack!  I've been explaining bonds to my clients for a number of years but...

Recent Comments by Kathryn Jankowski