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In Financial Post article “Live the Good Life, but Save for the Worst” Jonathan Chevreaux discusses how sudden changes in ones health situation reassesses one’s priorities and how “…should live each day as if it were our last because one day it will be. Spending as if there is no tomorrow is unwise, but so is the opposite extreme of piling up wealth while denying the present.” Also, how such an event demonstrates the importance of acquiring disability and long-term care insurance.
The Globe and Mail piece on “These ETFs are not for the faint of heart” Rob Carrick encourages caution with singlecountyETFs, especially those that have had enormous run-up in prices in the last year(s), likeChina,Mexico,Brazil,Belgium. The volatility of these single country funds requires strong stomachs.
Aleksandra Todorova in the WSJ writes about new longevity insurance products finally are becoming available in “If You Outlive Your Savings...Insurers are pushing ‘longevity insurance’ to fill the gap. Is it worth it?”.
Hartford Financial Services and MetLife introduced longevity insurance products (which I discussed in the Advocacy section of this website). While the arrival of these products is welcome, Todorova warns that their prices are still quite high as there is only limited competition. In the case of theHartfordproduct a 60 year old male pays about $26,000 for a $2,000 a month income stream starting at age 85. Of course, if the individual dies before age 85, there are no payments to be had (which is how the longevity insurance is supposed to work). However, the $2,000 per month payments are not indexed for inflation, and its purchasing power has been significantly eroded over 25 years.