A Book Designed to empower Canadian retirees to make more informed financial decisions that help them live with confidence and dignity. A comprehensive guide to unlocking some of the value of your home equity to achieve financial freedom.


Retire with Equity

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Tinsel, Tears, and Turkey: How Seniors Really Feel About the Holidays

Retirement expert Sue Pimento looks at what the season really feels like for many Canadians 55+—and what families can do to make this time more meaningful, inclusive, and joyful.

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Ah, the holidays. That magical season when cinnamon fills the air, grandkids are glued to their phones, and you're wondering if it's too early to spike the eggnog. (Answer: it's 5 o'clock somewhere, and that somewhere is your kitchen.)

For many older adults, the season is a cocktail of nostalgia, joy, and melancholy—served in a glass rimmed with memories of when the house was full, and the turkey wasn't store-bought.

Dealing With The Ghosts of Christmas Past  The holidays used to mean full houses, laughter echoing off the walls, and more food than a Costco freezer aisle. Now? Smaller gatherings, missing faces, and a nagging feeling that you're somehow in the way at your own celebration.

There's a certain ache that comes with the holidays as we age. It's not just arthritis—it's memory. The people who made our holidays special might no longer be around, and while their photos still grace the mantle, their absence can hit harder than a fruitcake to the forehead.

It's the quiet that gets you. The stillness of a home that used to hum with chaos. The microwave hums where the oven once sang. The Christmas card list has ghosted us—literally—replaced by e-cards that can't be hung on the fridge or hugged.

And yet, despite the ache, many seniors keep the traditions alive. They polish the silver, bake the cookies, and set the table—because ritual matters. It's a way to say, I'm still here, and this still matters.

Loneliness: The Fear No One Talks About  Let's name the holiday elephant in the room.  Yes, it turns out that one really is the loneliest number.
It's that heavy feeling that sneaks in right around the time commercials start showing perfect families in matching pajamas (who, let's be honest, probably fought about those pajamas in the parking lot).

The numbers tell a sobering story: A report by the National Institute on Ageing, finds that as many as 41 per cent of Canadians aged 50 years and older are at risk of social isolation and up to 58 per cent have experienced loneliness before. The holidays often bring additional pressure for many.  

It's important to note, you don't have to live alone to feel lonely.  Seniors often fear being forgotten—left out of the group chat, the dinner invite, or even the conversation at dinner. Some feel like a burden, convinced their presence is more "obligation" than "invitation." That fear of irrelevance can creep up faster than fruitcake at a church bake sale.

The internal dialogue doesn't help:
"They're busy."
"They have their own lives."
"I don't want to be a bother."

But here's the truth: you're not a bother. You're the keeper of stories, the family's living archive, and—let's face it—the only one who actually knows how to carve a turkey without creating a crime scene.

The health stakes are real: According to a 2023 research report from the U.S. Surgeon General, loneliness and social isolation have a profound effect on mortality, equal to smoking 15 cigarettes per day. That’s more impact than obesity or sedentary lifestyles. It's associated with increased risk of heart disease, stroke, dementia, depression, and anxiety. This isn't just about feeling blue; it's about actual health outcomes.

When Depression Wears a Santa Hat  Holiday depression doesn't always look like tears and tissues. Sometimes it's withdrawing from events, skipping meals, or not bothering to decorate. It's saying "I'm fine" with a smile that doesn't reach your eyes.

A prominent research study of seniors in the UK over a 12-year period published in The Lancet, 
confirms what many seniors experience: loneliness is a significant predictor of depression in older adults. The study found that higher loneliness scores were consistently associated with increased depression severity. The relationship works both ways—people with mental health conditions are more than twice as likely to experience loneliness.

It can also show up physically—fatigue, poor sleep, or that vague feeling that something's just... off. The sparkle of the season fades under the weight of grief, change, or just the exhausting pressure to be merry when you're not feeling it.

A few sad moments are natural. We all get a little misty when "White Christmas" plays for the 47th time. But if the blues linger past Boxing Day, it might be time for a gentle check-in—with a friend, a doctor, or someone who actually listens (not just nods while scrolling).
Remember: asking for help isn't a weakness. It's wisdom. And honestly? It's badass.

The Magic of Rituals and Traditions  For seniors, traditions aren't just habits—they're anchors. The same decorations, the favorite songs, the "don't touch that, it's Grandma's angel" moment that happens every. Single. Year.
Research shows that rituals and traditions provide crucial psychological benefits for older adults, including a sense of stability, purpose, and belonging. They offer structure and comfort during challenging times, helping seniors feel grounded and connected to their roots. 

Studies have found that maintaining traditions contributes to overall mental well-being and can even reduce symptoms of anxiety and depression.  These rituals offer stability in a world that keeps changing at warp speed (seriously, when did voice-activated ornaments become a thing?).

But when traditions fade—when no one asks for the shortbread recipe or the ornaments stay boxed—it can feel like being erased in real time.

So here's the trick: Evolve the traditions. 
Pass the torch, not the guilt. Let the grandkids lead carols (even if they insist on adding Mariah Carey). 

Use the good china. Pull out the silverware stored in the wooden case under the china cabinet that hasn't been opened since 1987. 

Keep the spirit alive, even if it looks different now.

How Seniors Can Create a Joyful Holiday (Yes, Really!)  Reach Out First: Don't wait for others to make the first move. Call, text, or—even better—show up with cookies. People are often grateful for the invitation but also afraid to impose. Be the one who breaks the ice.

Host a Mini Gathering: Even if it's just tea with a neighbor, connection is the best seasoning of all. Bonus: smaller gatherings mean less cleanup and more actual conversation.

Volunteer: Nothing lifts the spirit like helping someone else. Food banks, shelters, and local schools welcome extra hands. Plus, it's a great reminder that you're still needed—and you are.

Laugh on Purpose: Watch old comedies. Tell those same stories (again). Laughter really is medicine—no prescription, no co-pay required.

Decorate Anyway: Even if no one's visiting, do it for you. Light up your space, and your mood might just follow. And if the neighbors think you're overdoing it? Even better.

What Families Can Do (Besides Show Up Hungry) Here's your holiday homework, families:

Visit More, Scroll Less. You can't hug over FaceTime. And honestly, Grandma's WiFi probably can't handle it anyway.

Listen Like It's a Gift. Because it is. Let seniors share their stories without rushing them or checking your phone. They're not just repeating themselves—they're reliving joy. (And yes, you've heard it before. Listen again.)

Include Them in the Chaos. Let Grandma wrap presents, Grandpa set the playlist, or Aunt Sue take charge of... okay, maybe not the gravy. But give them a role. Purpose is the best present.

Check In Regularly. A quick "thinking of you" text can mean more than an expensive gift. Though, to be fair, both are nice.

Respect Their Pace. Big gatherings can be overwhelming. Sometimes small and meaningful beats loud and crowded. Not everyone wants to do the Macarena at Christmas dinner. (Looking at you, Uncle Bob.)

Remember: the greatest present you can give an older adult is presence—yours.

The Importance of Joy (and How to Find It Again)  Joy doesn't always come in grand gestures. Sometimes it's hiding in the small stuff:

•	The smell of pine needles
•	The first snowflake (before it turns into gray slush)
•	That old ornament you swore you'd throw out
•	The laughter of family—even if it's at your expense

Joy isn't found lying around like loose change. It's made. Sometimes it's coaxed out with a memory, a song, or a well-timed bad joke about Aunt Sue's lumpy gravy.

And if all else fails, remember this: you've survived decades of holidays. Burnt turkeys. Broken ornaments. That unfortunate incident with the glue gun in 2003. You've earned the right to laugh through the tears and dance in your slippers if you damn well feel like it.

The Real Gift  The holidays remind us that connection—not perfection—is the true magic.
For seniors, it's about being seen, heard, and loved. For families, it's about showing up, listening, and laughing together.

Because one day, those elders' stories will become yours. And you'll want someone to care enough to hear them, too.

So let's make this season count. Let's call more, visit more, and laugh more. Let's honor the past while making new memories. And let's remember that the best traditions aren't the ones that stay the same—they're the ones that adapt, evolve, and keep bringing us together.

Now pass the eggnog. The spiked kind.
 

Let's All Sit Under the Mistletoe and Sing the Retired Remix of "Jingle Bells" (To the tune of "Jingle Bells") Dashing through the snow, With a walker all in tow, To the mall we go, Moving nice and slow! Family's out of sight, Texting through the night, Oh, what fun it is to Zoom My grandkids once a night—hey! Chorus: Jingle bells, jingle bells, jingle all the way, Oh, what fun it is to chat With friends who won't delay—hey! Jingle bells, jingle bells, laughter saves the day, Lonely hearts can still feel joy— If love just finds a way. Happy holidays, everyone. May your turkey be moist, your family be present, and your eggnog be strong.
Want more insights like this?

Subscribe to my free newsletter here, where I share practical strategies, real-world stories, and straight talk about navigating retirement with confidence—not confusion. Plus, all subscribers get exclusive early access to advance chapters from my upcoming book. For Canadians 55+: Get actionable advice on making your home equity work for you, understanding your options, and living retirement on your terms. For Mortgage Brokers and Financial Professionals: Learn how to become the trusted advisor your 55+ clients—it's your opportunity to build lasting relationships in Canada's fastest-growing demographic.  Sue

Don’t Retire…Re-Wire!

 
References & Resources for You or a Loved One  On Loneliness and Social Isolation: •	U.S. Surgeon General. (2023). Our Epidemic of Loneliness and Isolation: The U.S. Surgeon General's Advisory on the Healing Effects of Social Connection and Community. https://www.hhs.gov/sites/default/files/surgeon-general-social-connection-advisory.pdf
•	Medicare FAQ. (2024). Loneliness in Seniors Statistics: Combating Social Isolation. https://www.medicarefaq.com/blog/senior-loneliness-statistics/
•	Mayo Clinic. (2023). Loneliness and Social Isolation Through the Holidays. https://newsnetwork.mayoclinic.org/discussion/loneliness-and-social-isolation-through-the-holidays/

On Depression and Mental Health: •	Kok, R.M., & Reynolds, C.F. (2020). The association between loneliness and depressive symptoms among adults aged 50 years and older: A 12-year population-based cohort study. The Lancet Psychiatry. https://www.thelancet.com/journals/lanpsy/article/PIIS2215-0366(20)30383-7/fulltext
•	Cigna. (2021). The Loneliness Epidemic Persists: A Post-Pandemic Look at the State of Loneliness Among U.S. Adults.

On Traditions and Rituals: •	Oregon Counseling. Why Traditions Matter to Mental Health. https://oregoncounseling.com/article/why-traditions-matter-to-mental-health/ •	Care365. Maintaining Traditions with Seniors. https://www.care365.care/resources/maintaining-traditions-with-seniors Additional Support:
•	National Council on Aging. Four Steps to Combat Loneliness in Seniors During the Holidays. https://www.ncoa.org/article/four-steps-to-combat-loneliness-in-seniors-during-the-holiday-and-beyond/ Emergency Services If the situation is urgent or someone is in immediate danger: Call 911.
Canada Suicide Prevention Service (CSPS)
	•	Call: 1-833-456-4566 (available nationwide, 24/7)
	•	Text: 45645 (evenings)
	•	Chat: available at 988.ca 





why-are-canadian-banks-not-protecting-seniors-the-40-billion-dollar-question

Why Are Canadian Banks Not Protecting Seniors?  The $40 Billion Dollar Question

After an 89-year-old Victoria man lost $1.7 million to phone scammers despite bank red flags, retirement expert and authour, Susan Pimento, exposes a critical protection gap: while U.S. banks like Bank of America offer "Trusted Contacts" (designated people banks call to verify suspicious transactions) for all accounts, Canadian banks restrict this safeguard to investment accounts only—leaving everyday banking vulnerable where most fraud occurs. In Canada, senior fraud is vastly underreported (RCMP estimates only 5-10% surface), and banks are treating this as a cost issue rather than a moral crisis.  Susan Pimento is available for interviews to discuss practical solutions, industry insights from her decades of work within financial institutions, and why Canadian banks are failing to implement a simple fix that could save seniors' life savings. Connect with her directly through ExpertFile to schedule TV, radio, podcast, or print interviews.    As I was polishing this post for Canadian Financial Literacy Month, another senior fraud story flashed across my screen. This one stopped me cold.

According to this CBC story, an 89-year-old man in Victoria, B.C., was tricked into handing over nearly $1.7 million of his life savings in a months-long phone scam. The caller claimed to be from the fraud department at CIBC and said he was helping with a national money-laundering case. (Spoiler: he wasn't.) 

Despite red flags and staff awareness, the bank still allowed large in-person withdrawals. He was told to buy gold bars — yes, actual gold bars — with drafts of up to $395,000, which couriers then collected like some twisted Uber Eats retirement fraud.

Every week in Canada, we see another heartbreaking headline: a senior sends thousands, sometimes millions, to a scammer pretending to be their grandchild, the CRA, or — the ultimate irony — their bank. 

These scams targeting seniors don't require fancy hacking. They rely on fear, isolation, and misplaced trust. Once the money's gone, it's gone—no refund policy.  And here's the kicker: what we're reading about is just the tip of the iceberg. For seniors, fraud now ranks as the top crime, and most fraud goes unreported—especially in this demographic. In a previous post, I showed how the data suggests the real figures could be 10 to 20 times higher than what's officially reported.  The RCMP estimates that only 5-10% of fraud victims come forward.  

Many victims never speak out due to embarrassment, fear, or confusion. 
Translation? For every story that makes the news, countless others suffer in silence.

How The Banking Industry Can Actually Fight Fraud  I've worked within financial institutions for decades. Let's just say I understand how the process works. Banks have billion-dollar tech stacks, layers of compliance, and advanced fraud detection systems that can flag a suspicious $47 transaction in milliseconds.

But the solution for this type of fraud isn't a multimillion-dollar algorithm or a new "AI-powered fraud prevention dashboard." Instead, it's a human-based approach called a Trusted Contact.

What's a "Trusted Contact," Anyway?  It's not an app, a chatbot, or some new gadget that requires a firmware update every Thursday. 

It's a person.  

Someone you trust — a family member, attorney, accountant, or another third-party who you believe would respect your privacy and know how to handle the responsibility of communicating with your bank in your best interests if something suspicious occurs. They don't access your money or view your accounts. They can't see that you spent $47 at the LCBO last Tuesday (Your secret is safe).

They're simply your human safety net — a fraud wing person, if you will.

The Origins of the Trusted Contact  The concept began in the U.S. in 2018, when FINRA mandated investment firms to request a Trusted Contact Person. Canada followed in 2022, when the Canadian Securities Administrators introduced similar guidance for investment accounts.

What things can be discussed with a trusted contact? As its name implies, a Trusted Contact is a designated person who is inherently trusted by the individual (and has no authority to transact business on a client’s account), so there is little to no danger that any reasonable disclosure would violate a client’s trust or give rise to any material issue.”

What Canadian Banks Are Doing...And Not Doing  Here's the good news. If you invest through Wealthsimple, RBC Direct Investing, TD Direct, or BMO InvestorLine, you can already designate a Trusted Contact.

But here's where it gets ridiculous: RBC Direct might have that security feature — but your regular RBC chequing account? Not so much. That protection vanishes the moment Mom or Dad logs into their everyday banking. 

And that's where most fraud actually occurs.

It's like installing a state-of-the-art security system on your front door but leaving the back door wide open with a welcome mat that says "Scammers Enter Here!"

Fraud in Canada for Banks is Still a Budget Item: Not a Moral Crisis  Here's the uncomfortable truth: For banks, fraud is considered a "cost of doing business." And since most of those losses are borne by customers, not the bank, there isn't much urgency to innovate.  

The Big Five earned over $40 billion in total last year. They have the means to care. They're not particularly motivated to actually do so.

The Big Opportunity for Banks: Add a Little Humanity to the System  Banks like to boast about their AI, blockchain, and next-gen fraud analytics. But most scams don't occur because of breached firewalls — they happen because of breached hearts.

A Trusted Contact provides an additional simple, low-tech layer: human verification.

Picture this: The bank spots an unusual transaction — a large new payee, an international wire transfer, or a sudden gold-bar purchase (it happens). Instead of sending another automated text alert, the system could ask: 

"This looks unusual. Would you like us to confirm with your Trusted Contact before proceeding?" or “Just a heads-up: scammers often use urgent or unusual requests. Prefer we run this by your Trusted Contact before we proceed?”  That's it. One additional step. One extra set of eyes. One brief conversation could save someone's life savings.

This isn't about limiting independence — it's about safeguarding autonomy. Ensuring your decisions are genuinely yours, not the scammer's. Banks could even call it "Senior Protection Mode." I'd sign up tomorrow. Heck, I'd pay extra for it. (Shhh, don't tell them that.)

Here's the Proof Trusted Contacts Work: Bank of America Did It  In 2022, Bank of America became the first major bank to extend Trusted Contacts beyond investment accounts to everyday banking clients. Customers can now add a trusted person the bank can call if something seems wrong, if they can't reach you, or if staff suspect undue influence.

That person can't access your money — they're just the human speed bump before disaster: one simple form, one phone number, and much heartbreak avoided.

If Bank of America can do it, why can't ours? Canadian banks already have the tech — and indeed the profits — to make it happen.

  What's Holding Canada's Banks Back?  Cue the usual excuses:

"Our legacy systems can't handle that." Sure — some of your code still thinks "Y2K" is an active threat. But if you can build an app that tracks my latte points and sends me notifications about my "spending insights,"  you can add one field for a Trusted Contact.

"Privacy laws  make it risky." Nope. FINRA and the CSA already provide safe-harbour protections. With consent, banks can legally contact a Trusted Person. Just add a checkbox. You love checkboxes. You make us check dozens of them every time we update our password.

"Customers haven't asked for it." They're asking now. Loudly. With megaphones. And pointing at stories like the Victoria gentleman who lost $1.7 million in gold bars.

The business case has historically been weak because most fraud losses affect customers, not the bank's balance sheet. But here's the catch: every fraud story damages trust. And in banking, trust is supposed to be the core of the business.

For Canadian Banks There's a Competitive Advantage in Caring  Rolling out a Trusted Contact feature isn't just good ethics; it's good business. Imagine the marketing campaign: "We don't just protect your password — we protect your peace of mind."

Seniors would love this. So would their kids. That's multi-generational loyalty money can't buy. If EQ Bank or any challenger brand wanted a PR home run, this would be it.  It's Time to Take Action on Fraud  To the Banks:  Stop waiting for regulators to force your hand. Lead. Be the first to offer Trusted Contacts for all customers — not just investors. You have the framework, the talent, and the budget. You absolutely do not need another consultant to tell you this is the right thing to do.

To Policymakers: The Financial Consumer Agency of Canada should update its Code of Conduct to include a mandatory Trusted Contact option for all customers, safe-harbour rules allowing banks to pause suspicious transactions, and annual public reporting on outcomes.

Because sunshine is the best disinfectant, even in banking.

To Consumers: Don't wait for policy — be the policy. Ask your bank today if you can add a Trusted Contact. If they say no, ask why not — and post it. Loudly. Talk to your family. Choose your Trusted Person now. Write your MP or MPP and ask why U.S. banks protect seniors better than ours.

Remember the $3 ATM Fee Rebellion?  Canadians once revolted over paying $3 to access their own money at ATM's. We later got no-fee accounts, digital challengers, and a whole new generation of more innovative banking.  

If we can rally over an ATM fee, surely we can rally to protect our parents and grandparents from losing their life savings. Fraud isn't an inevitable part of aging — it's a solvable problem. And Trusted Contacts are one of the simplest, most human solutions we have.  Don't Forget Two-Factor Authentication for the Soul  Adding a Trusted Contact won't stop all fraud — let's be clear about that. But it will go a long way toward slowing it down, adding a common-sense pause, and potentially saving even one senior from losing any part of their hard-earned money.

It's unfortunately too late for that gentleman and his family in BC, but it's not too late for countless others.

This won't crash legacy systems or drain bank profits. It just adds a little humanity back into banking — right where it belongs.

Because the best kind of security isn't just two-factor authentication. It's two people who care.  And if we don't care about protecting our elders, who exactly do we care about?

Sue

Don’t Retire…Re-Wire!

Want to become an expert on serving the senior demographic? Just message me to be notified about the next opportunity to become a "Certified Equity Advocate" — mastering solution-based advising that transforms how you work with Canada's fastest-growing client segment.  

when-markets-wobble-part-2-how-canadians-can-use-home-equity-as-their-ultimate-cash-wedge

When Markets Wobble (Part 2): How Canadians Can Use Home Equity as Their Ultimate Cash Wedge:

Retirement expert Sue Pimento shows how Canadian retirees can turn their property into a powerful backup cash buffer — using HELOCs, reverse mortgages, and equity-access tools to safeguard income when markets wobble.

In an earlier post I laid out one of the foundational blocks of your retirement defense system: the "Cash Wedge" - that boring-but-brilliant cushion of cash, GICs, and T-Bills that protects you from selling investments when markets wobble.

The Cash Wedge is the mild-mannered superhero of your retirement plan. It buys you time, flexibility, and peace of mind, as it gives you permission to wait for markets to recover— 
Now if you missed Part 1, go back and give it a quick read here. For Canadian homeowners — especially those whose wealth is mostly in their property — there are additional options that allow you to use your equity as a second buffer, dramatically strengthening your financial resilience.  

How Home Equity Strategies Can Help You Create a Backup Wedge for Retirement  Here's the risk that catches thousands off guard: sequence-of-returns risk combined with home equity concentration. Translation: While you own your home, you encounter problematic market conditions early in retirement while withdrawing, and your options narrow quickly.

Author Wade Pfau's research demonstrates that home equity can serve as a "buffer asset," shielding investments during economic downturns. Instead of selling investments when markets are down, it might be smarter to temporarily access a pre-arranged HELOC or reverse mortgage. Once markets recover, you can repay the credit line.

This isn't debt panic — it's strategic damage control.
 Warren Buffett's Wisdom Applied to Canadian Retirement  As an investor, Warren Buffett is the epitome of control and discipline.  His now famous quote rings true in these times.  

“The stock market is a device for transferring money from the impatient to the patient.”  Translation for retirees:  Keep dry powder. 
Own quality investments. 
Don't chase fads. 
And stop looking for the bottom — nobody knows where it is until it's in the rear-view mirror.

The Canadian "Brick-and-Mortar" Retirement Strategy  Listen up, homeowners. Canadians whose retirement plan is pretty much: buy a home, pay it off, and repeat; "we're mortgage-free" with pride.

This strategy is very common and effective. But let's be honest: if your home is part of your retirement plan, economic changes matter even more. 

If you’re in this camp, you need to accept the facts and plan how you'll use your equity to secure your retirement. It’s better to have a ready, aim, fire approach than the more typical fire, ready, aim!

When markets decline, central banks often cut rates. Lower rates can support real estate — but they don't guarantee rising prices. Meanwhile, inflation drives up costs, buyers' budgets fluctuate, property values can soften, and retirees feel the impact most quickly.

Even a modest dip in home values creates real erosion in net worth when your home carries the bulk of your financial future.

The Case for Securing Home Equity Access Now  It's much easier to qualify for credit when home values are higher, finances are stable, and you're not already in a pinch.

Your options:

Home Equity Line of Credit (HELOC) This includes products like Manulife One: Competitive rates and flexible options — but retirees often face income qualification barriers.

Reverse Mortgage: No income needed, no payments required. Plus, the No Negative Equity Guarantee — you can never owe more than your home is worth — but retirees dislike debt!

HESA (Home Equity Sharing Agreement): You get cash now in exchange for sharing a percentage of your home's future appreciation. No monthly payments, not technically debt, but you give up a share of future gains.

This isn't about needing money today. It's about safeguarding your future from having to sell, downsize, or rely on credit card debt because the economy experienced a mood swing. It's insurance — with a door handle.  Building Your Cash Wedge: Step-by-Step  Calculate 12–24 months of living expenses.
Select where to store each layer (high-interest Savings Account, cashable GICs, T-Bills).
Refill the wedge with income from dividends, distributions, or planned draws 
Monitor your situation closely.  If your income is tight: consider arranging a home-equity line or reverse mortgage as a backup wedge - not an emergency scramble.
Review annually — cost of living changes, inflation changes, and so should your wedge.

The Bottom Line for Canadian Retirees  The real question isn't "Do I need a Cash Wedge?" It's "Can I afford NOT to have one?"

Retirees have limited capacity to earn income to cover shortfalls. Budgets can tighten unexpectedly. Inflation doesn't seek permission. And sometimes the thing we think we'll never need becomes the lifeline that secures our retirement.  Your retirement security comes from: Owning quality investment 
Building reliable dividend income
Preparing smart home-equity backstops
Keeping emotions out of financial decisions
Avoiding saving too much while living too little

The Cash Wedge is the most boring tool in your retirement plan — and the most powerful. Yet most financial plans ignore it.  Don't.

Sue
 
Don’t Retire… ReWire!!!

Want to become an expert on serving the senior demographic? Just message me to be notified about the next opportunity to become a "Certified Equity Advocate" — mastering solution-based advising that transforms how you work with Canada's fastest-growing client segment.  

the-retirees-guide-to-market-volatility-building-your-financial-safety-net-with-a-cash-wedge-strategy

The Retiree's Guide to Market Volatility: Building Your Financial Safety Net with a Cash Wedge Strategy

Retirement expert Sue Pimento unpacks why market swings hit retirees harder — and how a simple cash-wedge structure can protect income, reduce stress, and keep long-term plans steady when volatility strikes.

Let's get one thing straight: the stock market doesn't care that you're retired. It doesn't care that you finally cleaned out that drawer full of ancient T4 slips, promised yourself you'd stop checking your RRIF balance daily, or told your spouse, "This year, we're sticking to the plan."

The Market Doesn't Care About Your Retirement Date  Markets wobble because they wobble. Headlines panic. Analysts disagree sharply — and confidently. And somewhere, a retiree stands in front of the fridge, wondering whether to sell everything or simply turn off the news.

But retirement isn't a day-trading contest; it's a decades-long longevity project. The aim is to generate reliable income, maintain sleep-at-night discipline, and avoid the common mistake among retirees of saving too much while living too little.

Your Retirement Income Defense: Sectors That Weather Any Storm  Read the news, and you'll see a constant blizzard of rising prices created by our neighbours to the south. Not just little price increases, but if economists are right about what we can expect, it's best to “inflation-proof” yourself - before you need it.  

But keep in mind, every downturn follows the same pattern: a few key sectors keep humming while everything else goes through a mild identity crisis.

The Classic Defensive Trio for Canadian Retirees: Consumer Staples (groceries, household essentials)
Utilities (keeping the lights on and heat up)
Healthcare (aging doesn't pause for recessions)

Research on past downturns shows these sectors experienced significantly smaller losses than the S&P 500 during selloffs. When markets tantrum, these industries act like the sensible cousin who says, "We'll get through this. Have a muffin."

Canadian-Specific Additions: Telecoms (we'll cut many things, but not Wi-Fi)
Pipelines (fee-for-service revenue, though rate-sensitive)

Combine these with low-volatility or dividend ETFs, and your portfolio suddenly feels less like a roller coaster and more like a slow-moving Via Rail train: reasonably steady, unfussy, and you still get to where you're going.

The Cash Wedge: And Why You Need One  Think of your retirement plan as a three-layer cake:

Long-term investments (stocks, dividend ETFs, balanced portfolios) Intermediate safety assets (short GICs, T-bills, high-interest savings) Cash you can actually live on (your wedge)  Your Cash Wedge sits at the very front of the line — a 12–24-month cushion of living expenses held in stable, boring, absolutely-not-newsworthy places:

High-interest savings accounts
Short-term GICs
Treasury bills
Cashable deposits

It's essentially the "dry powder" you need to ride through market volatility without panic-selling.

Three Critical Risks Your Cash Wedge Protects Against  1. Sequence-of-Returns Risk in Early Retirement This is the risk that markets drop early in your retirement while you're withdrawing. It's the silent killer of portfolios. A cash wedge buys you:

Time for dividends to arrive
Time for markets to recover
Time for calm to return

2. Emotional Decision-Making During Market Downturns When markets fall, too many retirees experience "sell-and-suffer syndrome":

They sell low
Lock in losses
Delay recovery
Reduce the lifespan of their savings

3. Portfolio Depletion at Critical Moments Without a cash wedge, every withdrawal during a downturn digs a deeper hole. With a cash wedge, withdrawals can pause while investments rebound.

"Think of a cash wedge as retirement jiu-jitsu — using stability to neutralize volatility."   How to Calculate Your Ideal Cash Wedge Size  There's no magic number, but here's a practical framework:

12 months of essential expenses for retirees with pensions or steady income sources
18 months for those relying heavily on investments
24 months for anyone highly risk-averse or aging in place on a fixed budget

This isn't a pile of cash sitting in a chequing account — it's a structured, laddered buffer.

 Why Canadian Retirees Often Resist Building a Cash Wedge  I've heard all of these comments over the years from many retirees:

"Cash earns nothing." Not true anymore — HISAs and T-bills offer competitive yields.

"I don't want my money sitting around doing nothing." It isn't doing nothing — it's protecting your future income.

"I've always been fully invested." Retirement changes the rules. What worked during the accumulation phases of retirement can be dangerous during deaccumulation.


The Cash Wedge is not an investment strategy. It is an income preservation strategy — the most important one in retirement.  Real-Life Example: The 2020 Market Crash Test  Remember  2020?  Stock markets dropped nearly 35% in just weeks. Let's consider two couples with similar assets:

Couple A : had a 2-year cash wedge
Couple B : had none

Couple A simply shifted withdrawals from their wedge, not their portfolio. 
Couple B sold their best assets at their worst prices — causing permanent damage.

This is why I tell retirees: "The Cash Wedge protects your portfolio from you."  It’s 12–24 months of living expenses kept in cash, high-interest savings accounts (HISA), short-term GICs, or T-Bills. It's not exciting. No one flaunts a 6-month GIC at brunch. But the emergency fund prevents disaster: selling investments at the worst possible time.
It buys you time. It buys you calm. It buys you the uninterrupted ability to buy groceries.

The Cash Wedge alone is powerful. But for Canadian homeowners — especially those whose wealth sits mostly in their property — there’s a second buffer that can dramatically strengthen your financial resilience: your home equity.  We'll explore that in Part 2 of this post tomorrow. 

Sue


Don’t Retire… ReWire!!!

Want to become an expert on serving the senior demographic? Just message me to be notified about the next opportunity to become a "Certified Equity Advocate" — mastering solution-based advising that transforms how you work with Canada's fastest-growing client segment.    

canadas-first-lifetime-fixedrate-reverse-mortgage-a-gamechanger-or-just-another-option

Canada's First Lifetime Fixed-Rate Reverse Mortgage: A Game-Changer or Just Another Option?

Our take on this new lifetime fixed-rate reverse mortgage

Every so often, a retirement product emerges that makes even a seasoned boomer take notice and remark, "Well, isn't that interesting?" The Globe and Mail reported that Bloom Finance has introduced Canada's first "lifetime fixed-rate reverse mortgage."

What’s a Lifetime Fixed-Rate Reverse Mortgage?  A Fixed Rate Reverse Mortgage is a financing option that gives you a permanently locked-in interest rate for as long as you hold the loan—not just for a typical five-year term. This could appeal to many Canadians entering retirement: 

It means you can unlock tax-free equity from your home without worrying that future rate hikes will eat into your cash flow or erode your long-term plans. What makes this even more appealing is the nature of a reverse mortgage itself. 

You’re not required to make monthly payments You retain full ownership of your home Your rate simply determines how your balance grows over time.   When that rate is fixed for life, it removes one of the biggest sources of uncertainty, allowing retirees to plan confidently, protect more of their equity, and use their home as a stable financial tool rather than a source of stress.

In short, a fixed-rate reverse mortgage combines the predictability retirees crave with the flexibility they need—something increasingly hard to find in today’s jittery rate environment.  Bloom's New Lifetime Reverse Mortgage: Why People Are Talking  Reverse mortgages allow homeowners aged 55+ to access up to roughly 55% of their home's equity without taxes, without monthly payments, and without affecting OAS or GIS. In the past, concerns have centred on the compounded interest and the uncertainty of future rates.

Bloom's new Lifetime Reverse Mortgage offering aims to ease this stress by offering a fixed rate for life. Currently, that rate is 6.69%.   

The rates are a bit higher than other  reverse mortgage products on the market.  For comparison here are some current rates at the time of publication:

Home Trust's (6.44% for a 5-year fixed rate) Equitable Bank (6.54%) HomeEquity Bank's (6.64%) 5-year fixed rates.   Looking Beyond the Rates of Reverse Mortgages  Bloom's real appeal with this new product is emotional: no more renewal surprises.

For retirees on fixed incomes, the stability of a fixed rate feels different. It's like a weighted blanket for your financial nervous system.  Think of it as an insurance policy against rising interest rates. And boomers love insurance. We insure our hips, luggage, vacations, eyeglasses, cell phones, and emotions (usually at the spa). So, a mortgage rate that stays stable? Yes, please.

But let’s look beyond the mechanics of this product.  We need to discuss a force even greater than compound interest: luck.


Let's Talk About Luck (aka: The Retirement Wild Card)  Here's a truth many boomers seldom admit: financial success isn't only about planning. It's about timing. It's about circumstance. And yes… pure, unfiltered luck.

As humans — especially we entitled boomers — we tend to overemphasize our achievements and downplay our faults. And let's be honest: we don't like admitting when we're wrong. Society often rewards the strong and wrong more than the weak and right. (If you're unsure, just watch any political panel for 30 seconds.)

Even Warren Buffett — the patron saint of rational investing — made a spectacularly poor decision when he bought Dexter Shoe for $433 million in Berkshire stock. The company later became worthless. Buffett described it as the worst deal of his life. If the Oracle of Omaha can make a mistake, the rest of us can certainly recognize how luck has influenced our real estate stories.

And oh, did luck influence the boomer journey.

We bought homes when they were affordable; when interest rates were character-building, and avocado appliances were peak chic. Then real estate skyrocketed. Homes doubled, tripled, quadrupled. Not because we were geniuses — but because we were standing in the right place at the right time.

Let's be even more honest: A boomer's worst day in real estate is a millennial's dream day.  We might not like admitting it, but it's true.

And yes — boomers get to show off a little because we also carried the burden of our failures: recessions, layoffs, 19% mortgage rates, renovation disasters, and property taxes that still make us weep into our soup. But luck? She was definitely in the room.  Now that we've named her, we can begin speaking honestly about how to use the equity we possess — wisely, deliberately, and with eyes wide open.
 Let's Discuss the Numbers (Because We Ought To)  Here's where the real impact happens. Say you're 70 and you take out a $200,000 reverse mortgage at Bloom's lifetime rate of 6.69%. Over 20 years, with compounding interest and no payments, you'd owe approximately $724,000.

Now, if you took out a traditional reverse mortgage at 6.54% over those same 20 years (not including rate hikes, though they're likely), you'd owe approximately $707,000.
That's a $17,000 difference — not a high price to pay for lifelong comfort.

But There Are Trade-Offs The early-exit penalties are steep:
·   	8% in year one
·   	Decreasing until year five
·   	Then three months' interest thereafter

Penalties are waived if you downsize, move to assisted living, or pass away. But if you leave for other reasons? You're responsible for the costs. 

Translation: Only select this reverse mortgage product if you genuinely plan to stay put. Zooming Out: The Full Menu of Equity Options  This lifetime reverse mortgage is just one tool in a broad (and expanding) equity-release toolkit. 

Others include:
ADUs (Accessory Dwelling Units): Build a suite, rent it out, house a caregiver, or create multigenerational living. Offers independence and income potential. Downsizing: The classic move. Big house to small house to building a solid cash cushion. Emotionally complex, financially empowering. HELOCs (Home Equity Lines of Credit): Offer flexible, interest-only repayment options. Manulife One: The Swiss Army knife of HELOCs. Perfect for disciplined retirees. HESA (Home Equity Sharing Agreements): No payments or interest — you exchange future house appreciation for cash today. Traditional Reverse Mortgages: Similar to Bloom in structure but without the lifetime rate.  And yes — boomers have more equity-access options than any generation in Canadian history. Not arrogance. Just facts. And increasingly relevant ones. 

Research shows that 91% of older adults in Canada prefer to age at home rather than move to an institution, with 92.1% of Canadian seniors currently living in private dwellings in the community.

Honest Questions to Ask Yourself Before Signing for Any Type of Loan  Wondering if you should take the leap?  Before you even consider signing anything, pour yourself something warm (or stronger) and ask a few honest questions.

·   	Am I emotionally ready, or just tired of worrying about money?
·   	Am I genuinely content to remain in this home forever, or am I romanticizing the past?
·   	Where are interest rates heading — and how will that affect my comfort level?
·   	What exactly do I need cash flow for — income, essentials, opportunities, legacy, or "finally something for ME"?
·   	Have I thought about how this decision might affect my children and inheritance?
·   	What future choices could this create — or prevent?
· And the biggest question of all: if Plan A fails, is Plan B truly realistic… or just wearing yoga pants and pretending?

Because here's the real truth: the happiest retirees aren't the ones who got lucky — they're the ones who used their luck with purpose, timing, and emotional clarity. Bloom's lifetime reverse mortgage isn't a miracle cure, nor is it a trap. It's simply one tool — and for the right person, it provides emotional stability and financial predictability.  Here's What Matters  Before you sign for a reverse mortgage, HELOCs, or anything else with an acronym and a sales commission attached, here's my professional advice: Get the full picture so you can make decisions that truly work for your life — not merely to meet someone else's sales quota.  

The "best" financial move isn't the one that appears impressive on a spreadsheet. It's the one that allows you to sleep peacefully at night. The one that grounds you emotionally and supports you financially.  Retirement isn't the end of the story. It's the chapter where you finally get to blend strategy with self-awareness, confidence with clarity, and luck with a bit of laughter.

And if life insists on being unpredictable? Then outsmart it, outlaugh it, and choose the equity tools that help your future self say, "Nice move."
 

Love,

Aunt Equity"
aka Sue
"Don't Retire… ReWire!!!"

Want to become an expert on serving the senior demographic? Just message me to be notified about the next opportunity to become a "Certified Equity Advocate" — mastering solution-based advising that transforms how you work with Canada's fastest-growing client segment.  

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Avoiding the Reverse Mortgage Reflex

Seniors Deserve More Than a Product Pitch

Every once in a while, an industry article really hits the mark. Recently, one did just that—Canadian Mortgage Trends' "Who Uses Mortgage Brokers Today and Why? (Part 2)" gave seniors their own category, not as an afterthought, but as a client segment worthy of attention. Bravo. It's about time someone acknowledged that older Canadians aren't just "another niche."

But then… came the reverse mortgage section.

Don't get me wrong—it's refreshing to see financial professionals finally acknowledge that Canada's aging population presents both opportunities and complexities. But suggesting that "helping seniors" automatically means "offering a reverse mortgage" is like telling everyone who's thirsty to drink espresso. Some will love it. Others will lie awake at 3 a.m. with regrets.

Let's call it what it is: type-casting seniors into a product.

The Reverse Mortgage Reflex  There's a curious habit in our industry. Mention the word "senior" and watch what happens: eyes light up, marketing decks shuffle, and—as if on cue—the term "reverse mortgage" materializes like a pop-up ad from 2007.

It's as if the entire profession has agreed that every retiree with a pulse and property must be yearning to re-mortgage their home.

Except… most aren't.

Most seniors spent decades teaching their kids to avoid debt and pay off mortgages as quickly as possible CBC Radio. Suggesting they should now joyfully jump back into one to "solve retirement" isn't just unappealing—it's borderline insulting.  Here's the truth: no one dreams of retiring into debt.
And the numbers bear this out. 

Debt Levels: While only about a quarter of people over 65 had debt in the late 1990s, that figure has climbed to more than 40% today (Source: CBC News). Anxiety Levels: Nearly 50% of retirees now worry about their debt, according to the Credit Counselling Society. Reverse mortgages can absolutely be valuable tools. The reverse mortgage market has exploded, with over $8.2 billion in outstanding debt as of June 2024—an 18.3% increase from the previous year (Source: MoneySense). But offering one before understanding the client's full picture isn't being a trusted advisor—it's running on sales autopilot.

Brokers, You're Better Than This  Brokers pride themselves on being client advocates—the ones who shop the market, decode fine print, and find creative solutions when banks can't. The very definition of a broker is someone who matches the right solution to the customer's needs.

So why, when it comes to seniors, do many skip the most important part—the needs assessment—and leap straight to the product?
It's backwards.

While it may seem very simple, a proper financial conversation starts with identifying the problem, then illustrating a solution, and finally defining the intended outcome. 

•	Why does this person need to access equity? 
•	What problem are they really solving? 
•	How do they define "financial comfort" 

The first step of solution selling isn't talking—it's listening.

Start With the Need, Not the Product  Before reaching for any rate sheet, it's critical to understand the client's true priorities. According to research from HomeEquity Bank, 9 in 10 Canadians want to age in place and live out their retirement years in the comfort of their home (Source: Canadian Mortgage Trends). But their financial needs are as diverse as their travel insurance policies.

The reality is stark: A 2024 survey by the Healthcare of Ontario Pension Plan (HOOPP) found that 39% of Canadians aged 55-64 have less than $5,000 in savings, and 73% have $100,000 or less. More than half of Canadians over 60 who remain in the workforce do so out of financial necessity, not choice (Source: CBC Radio). Ask the right questions: •	Do they need to eliminate high-interest debt?
•	Do they need cash flow to cover rising expenses?
•	Are they struggling to afford in-home care or medical support?
•	Do they want income stability—that pension-like feeling—rather than a lump sum?
•	Do they want to downsize, relocate, or age in place with dignity?

Only after understanding the full financial picture can you propose the best, most robust solution. That's not just good practice. That's respectful advising.

Solution Selling: Connecting the Dots  Here's a classic example:
A client walks in with a paid-off home and a stack of monthly bills that feel heavier than the Sunday paper. They're anxious about cash flow but debt-averse. The reflex answer? "Reverse mortgage!"

Not so fast.

Solution sellers focus on understanding customers' challenges and delivering ideas that address their daily needs, rather than pushing products. When clients can see exactly what they're getting, they make better decisions and advisors earn lasting trust through transparency, not sales pressure. 

Maybe downsizing to a more manageable property makes sense. 
Perhaps a small secured line of credit covers the gap without interest compounding as quickly. Maybe an annuity provides steady income with less long-term cost.

Or maybe—just maybe—they don't need a mortgage at all.

Consider that a $100,000 reverse mortgage balance can grow to $150,000 in just 5 years at current rates, with interest compounding annually. When you solve the real problem (not just the balance sheet), you build lasting trust and genuine loyalty.

The Psychology of the Senior Client  It's not just about the math; it's about the mindset.

Here's where most brokers stumble: they treat all seniors as if they're cut from the same cloth. 

They're not.

Let's get real: seniors aren't a monolithic group. A 55-year-old and an 85-year-old? They're separated by 30+ years of life experience, different communication styles, varying financial literacy, and completely different emotional triggers around money.

Cookie-cutter advice doesn't cut it.

The best advisors listen first. They ask questions. They assess each client's actual financial situation—not what they assume it is—and then deliver advice that fits that person's life, not some generic "senior strategy."

 Respect Is the Real Differentiator  Understanding a client's lifestyle, fears, and goals isn't just good ethics—it's good business. Seniors have finely tuned radar for sincerity. They can smell a sales pitch faster than a Labrador finds bacon.

Want to stand out? Lead with curiosity, not a contract

A holistic, solution-based approach positions you as a trusted advisor—not a product pusher. Once you earn that trust, referrals flow like coffee at a church social.  From Product Pushing to Purpose Selling  Here's the shift our industry needs:  Stop viewing seniors as a market. Start viewing them as individuals with layered needs.

Solution selling isn't anti-reverse mortgage—it's anti-assumption. It ensures the whole problem gets solved, not just the one that fits your product lineup.  Yes, over 25% of Canadians aged 55 and older are considering a reverse mortgage (Source: Canadian Mortgage Trends), and it might eliminate a monthly payment—but if it doesn't solve for cash flow, health costs, or income stability, you've only done half the job.

The real opportunity? Elevate the conversation from product placement to purpose-driven advising.

Advisors, Reset Your Lens  Seniors don't need to be sold. They need to be understood.  Give them the dignity of choice, the respect of time, and the power of informed decision-making.  When advisors show prospective clients detailed solutions, it allows clients to properly assess the quality of advice and make fully informed decisions, supporting healthy long-term relationships 

The best brokers—the ones shaping the next chapter of this industry—don't just sell mortgages.
They sell confidence, clarity, and control.

And that, my friends, is how you truly help Canadians retire hip, fit, and financially free.
 

Want to become an expert on serving the senior demographic? Just message me to be notified about the next opportunity to become a "Certified Equity Advocate" —  mastering solution-based advising that transforms how you work with Canada's fastest-growing client segment.  

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