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#Expert Research: The Use of AI in Financial Reporting

Artificial intelligence (AI) is developing into an amazing tool to help humans across multiple fields, including medicine and research, and much of that work is happening at Emory University’s Goizueta Business School. Financial reporting and auditing are both areas where AI can have a significant impact as companies and audit firms are rapidly adopting the use of such technology. But are financial managers willing to rely on the results of AI-generated information? In the context of audit adjustments, it depends on whether their company uses AI as well. Willing to Rely on AI? Cassandra Estep, assistant professor of accounting at Goizueta Business School, and her co-authors have a forthcoming study looking at financial managers’ perceptions of the use of AI, both within their companies and by their auditors. Research had already been done on how financial auditors react to using AI for evaluating complex financial reporting. That got Estep and her co-authors thinking there’s more to the story. “A big, important part of the financial reporting and auditing process is the managers within the companies being audited. We were interested in thinking about how they react to the use of AI by their auditors,” Estep says. “But then we also started thinking about what companies are investing in AI as well. That joint influence of the use of AI, both within the companies and by the auditors that are auditing the financials of those companies, is where it all started.” The Methodology Estep and her co-authors conducted a survey and experiment with senior-level financial managers with titles like CEO, CFO, or Controller – the people responsible for making financial reporting decisions within companies. The survey included questions to understand how companies are using AI. It also included open-ended questions designed to identify key themes about financial managers’ perceptions of AI use by their companies and their auditors. In the experiment, participants completed a hypothetical case in which they were asked about their willingness to record a downward adjustment to the fair value of a patent proposed by their auditors. The scenarios varied across randomly assigned conditions as to whether the auditor did or not did not use AI in coming up with the proposed valuation and adjustment, and whether their company did or did not use AI in generating their estimated value of the patent. When both the auditor and the company used AI, participants were willing to record a larger adjustment amount, i.e., decrease the value of the patent more. The authors find that these results are driven by increased perceptions of accuracy. It’s not necessarily a comfort thing, but a signal from the company that this is an acceptable way to do things, and it actually caused them to perceive the auditors’ information as more accurate and of higher quality. Cassandra Estep, assistant professor of accounting “Essentially, they viewed the auditors’ recommendation for adjusting the numbers to be more accurate and of higher quality, and so they were more willing to accept the audit adjustment,” Estep says. Making Financial Reporting More Efficient Financial reporting is a critical process in any business. Companies and investors need timely and accurate information to make important decisions. With the added element of AI, financial reporting processes can include more external data. We touched on the idea that these tools can hopefully process a lot more information and data. For example, we’ve seen auditors and managers talk about using outside information. Cassandra Estep “Auditors might be able to use customer reviews and feedback as one of the inputs to deciding how much warranty expense the company should be estimating. And is that amount reasonable? The idea is that if customers are complaining, there could be some problem with the products.” Adding data to analytical processes, when done by humans alone, adds a significant amount of time to the calculations. Research from the European Spreadsheets Risks Interest Group says that more than 90% of all financial spreadsheets contain at least one error. Some forms of AI can process hundreds of thousands of calculations overnight, typically with fewer errors. In short, it can be more efficient. Efficiency was brought up a lot in our survey, the idea that things could be done faster with AI. Cassandra Estep “We also asked the managers about their perspective on the audit side, and they did hope that audit fees would go down, because auditors would be able to do things more quickly and efficiently as well,” Estep says. “But the flip side of that is that using AI could also raise more questions and more issues that have to be investigated. There’s also the potential for more work.” The Fear of Being Replaced The fear of being replaced is a more or less universal worry for anyone whose industry is beginning to adopt the use of AI in some form. While the respondents in Estep’s survey looked forward to more efficient and effective handling of complex financial reporting by AI, they also emphasized the need to keep the human element involved in any decisions made using AI. What we were slightly surprised about was the positive reactions that the managers had in our survey. While some thought the use of AI was inevitable, there’s this idea that it can make things better. Cassandra Estep “But there’s still a little bit of trepidation,” Estep says. “One of the key themes that came up was yes, we need to use these tools. We should take advantage of them to improve the quality and the efficiency with which we do things. But we also need to keep that human element. At the end of the day, humans need to be responsible. Humans need to be making the decisions.” A Positive Outlook The benefits of AI were clear to the survey participants. They recognized it as a positive trend, whether or not it was currently used in their financial reporting. If they weren’t regularly using AI, they expected to be using it soon. I think one of the most interesting things to us about this paper is this idea that AI can be embraced. Companies and auditors are still somewhat in their infancy of figuring out how to use it, but big investments are being made. Cassandra Estep “And then, again, there’s the fact that our experiment also shows a situation where managers were willing to accept the auditors’ proposed adjustments. This arguably goes against their incentives as management to keep the numbers more positive or optimistic,” Estep continues. “The auditors are serving that role of helping managers provide more reliable financial information, and that can be viewed as a positive outcome.” “There’s still some hesitation. We’re still figuring out these tools. We see examples all the time of where AI has messed up, or put together false information. But I think the positive sentiment across our survey participants, and then also the results of our experiment, reinforce the idea that AI can be a good thing and that it can be embraced. Even in a setting like financial reporting and auditing, where there can be fear of job replacement, the focus on the human-technology interaction can hopefully lead to improved situations.” Cassandra Estep, is an assistant professor of accounting at Goizueta Business School, and a co-author of the forthcoming study looking at financial managers’ perceptions of the use of AI. She's available to speak about this important topic - simply click on her icon now to arrange an interview today.

What's Your Retirement Plan B?

Chances are, you have seen the ups and downs in the financial markets, which can really cause seniors a lot of anxiety when looking at those portfolio statements. Add to that the ripple effects of the Canada-U.S. trade war, and it’s more essential than ever to have a Plan B. The Trade War Is Personal The Canada-U.S. trade tensions may appear to be a political issue, but their repercussions are directly impacting kitchen tables across the country. Inflation is increasing the cost of everyday essentials, while investments—on which many retirees depend for income—are suffering.  For those who cannot easily re-enter the workforce, this situation is more than just inconvenient. It’s stressful. Withdrawing investments during a market dip can permanently reduce your savings. Meanwhile, rising prices on everything from apples to arthritis medication stretch fixed incomes thinner than ever. This isn’t just about budgeting anymore —it's about building a wise financial safety net. Plan B Matters More in Retirement You’ve worked hard to reach this point. Retirement should be about freedom, not fear. However, having a backup plan is essential since there are limited ways to generate new income. Think of Plan B as your financial airbag — something you hope you never need, but you're grateful it's there when life encounters a bump. And let’s be honest: even the most well-padded retirement can use a little backup when the economy’s doing somersaults. The Simple Economics of Cashflow Managing your finances boils down to a straightforward equation: money in versus money out. Think of it as balancing a seesaw—on one side, you have your income (cash in), and on the other, your expenses (cash out). For seniors, especially those on a fixed income, keeping this balance is crucial. Boosting Your Income Even in retirement, there are ways to add a little extra to your “money in” side. This could be through part-time work, turning a hobby into a small business, or renting out unused space in your home. Every additional dollar earned can provide more breathing room in your budget. Another option for many Canadians, is right under their feet—their homes. Home equity can be a powerful tool, giving them access to funds without selling or downsizing. Here are some practical options you may want to consider: Home Equity Line of Credit (HELOC): If you qualify, a HELOC offers flexible access to funds and charges interest only on the amount you use. It’s perfect for short-term needs or emergency access. Remember, you’ll need to make monthly payments and provide proof of income to qualify. Manulife One is a creative and customizable solution that combines your mortgage, income, and savings into a single account. It allows you to borrow against your home with greater flexibility. Payments are required but can be made within the available limit. Qualifying is similar to a HELOC. Reverse Mortgage: For homeowners aged 55 and older, a reverse mortgage allows you to access your home equity without the need for monthly payments. The loan is repaid when you sell or move, providing you with freedom and cash flow while remaining in your home. These tools can help ensure you're not forced to withdraw from investments during market downturns, letting your money recover while you stay comfortable. Trimming Your Expenses On the flip side, reducing your “money out” can be equally, if not more, effective. Perhaps you have subscriptions you no longer use for streaming services or mobile phone plans. Or you find you are purchasing too many items at the store because you aren’t preparing a list. Or you are dining out multiple times a week. Remember, every dollar you don’t spend is a dollar saved. Let’s unpack this a bit more, looking at this from a tax perspective Understanding the After-Tax Advantage of Cost Reduction For seniors supplementing their income with part-time work, it’s crucial to recognize that reducing expenses can be more impactful than earning additional income, primarily due to the effects of taxation. For example, let’s consider part-time income at a marginal tax rate of 30%. -------------------------------------------------------------------------------------------------- • To have an extra $100 in your pocket after taxes, you’d need to earn approximately $142.86 before taxes. This is because 30% of $142.86 is $42.86, leaving you with $100 after tax. • Conversely, if you reduce your expenses by $100, you effectively save the full amount. There’s no tax on money you don’t spend. Why This Matters: Every dollar saved is equivalent to more than a dollar earned when considering taxes. This means that focusing on cost-saving measures can be a more efficient strategy for improving your financial situation than seeking additional taxable income. 3 Major Strategies to Help You Cut Costs Budgeting: Prioritize identifying and eliminating unnecessary expenses. Regularly review subscriptions, dining habits, and utility plans to find areas where you can cut back. Smart Shopping: Utilize discounts, loyalty programs, and bulk purchasing options to reduce spending on essentials. Tax Planning: Be aware of how additional income might affect your tax bracket and eligibility for income-tested benefits. Sometimes, earning more can inadvertently reduce certain government benefits. Saving Smart – Some Tips to Get Started Your Plan B doesn’t have to focus solely on earning more income or borrowing. Sometimes, the best backup plan begins with cutting the extras. Think of it as being retro cool — just like you were before it became trendy. Tip #1: Rethink Dining Out - A Once-A-Week Treat, Not a Routine I love to dine out. It’s great to leave the cooking to someone else, especially after a busy day. But this is also one of the fastest ways to drain your budget. In Toronto, the average cost of a casual dinner for two with wine is around $90–$120. Opt for a more upscale spot? You’re likely looking at $150+ after tax and tip. Savings Tips • Cutting out one dinner per week could save approximately $400–$500/month or $5,000–$6,000/year. • Think about hosting a monthly dinner with friends at home where everyone brings a dish. You’ll still enjoy social time—but for a fraction of the cost. Or maybe try organizing a game night. Perhaps it’s euchre or cribbage, or maybe charades they all have something in common (they don’t require a monthly fee). Organize a potluck to bring people together. Twister might be off the table (unless your chiropractor is on standby), but laughter and connection are always in season. • Also think about how you can share resources. From ride-shares to splitting bulk grocery purchases with a neighbor, the old-school approach of sharing is making a comeback. It’s like carpooling, but with avocados and streaming passwords. Tip #2 Review Your Subscriptions - What are you Really Using? Have you already binge-watched all the episodes of your favourite shows, but you are still paying for streaming services you haven’t used in months? Then it’s time to cancel some subscriptions. According to the Convergence Consulting Group The average Canadian household now spends $70–$90/month on streaming and digital services (Netflix, Disney+, Prime Video, Spotify, etc.). Many people are paying too much for mobile. According to the CRTC, the average Canadian pays $64/month for mobile service.  Seniors who negotiate can often reduce this to $35–$45/month—a 30–40% savings. Savings Tips: • Audit Your Subscriptions: Write down every monthly and yearly subscription you have. Even cutting or optimizing 2 or 3 could save $30–$50/month. • Cancel subscriptions you don’t use often. You can always resubscribe later. Instead of paying for four platforms and using a few, consider rotating through them one at a time. You’ll be surprised at how quickly you can catch up on your favorites. Many streaming platforms also offer free trials or cheaper, ad-supported versions. • Call Your Mobile Phone & Internet Carrier Once a Year. Most people don’t realize how much loyalty can cost them. New customers often get much better deals than long-standing ones. When you call, here are some questions to ask: “Am I on the best plan for my usage?” “Are there any promotions I qualify for?” “Can I get a loyalty discount?” “Do you offer special discounts for seniors?” Keep in mind there are also senior-specific mobile plans from carriers like Zoomer Wireless, Public Mobile, or SpeakOut. • Don’t be shy about taking your business elsewhere. Carriers don’t want to lose subscribers and have special offers designed to make you want to stay. You’d be surprised how quickly they "find" a discount. Savings Tip #3: Don’t Throw Out Those Flyers and Coupons With inflation pushing up grocery prices, shopping smart matters more than ever. According to Statistics Canada, the average Canadian household now spends $1,065/month on groceries. So, it may be time to pay attention to those grocery store flyers you used to throw out. While Canadian data on potential savings is limited, US studies show that flyers and couponing can reduce costs by 10–25% for groceries and other household items if used consistently. Savings Tips: • Use apps like Flipp or visit sites like Smart Canuks to find online flyers you may have missed. • Sign up for loyalty cards to access extra discounts. One of the most popular savings programs, PC Optimum, offers frequent discounts and helps you collect points at Shoppers Drug Mart and Loblaws. Also, remember to swipe loyalty cards at the pump; many gas retailers offer discounts that can add up. • Consider shopping at stores like Walmart, which have pricing-matching policies for identical items you find advertised elsewhere. Saving Tip #4: Cut the “Daily Habits” That Add Up Remember, it’s not just the big expenses—it’s the daily ones that sneak up on you. Let’s look at a few “seemingly small” indulgences as examples: • 3 Starbucks Grande Lattes ($6.45 + tax) x 3 days/week = $1,137/year • Take-Out Lunch (for $12 + Tax) x 3 days/week = $2,115/year That’s over $3,000/year in “small” daily purchases! Savings Tips: • Prepare Meals in Advance: Cooking larger portions and planning for leftovers can minimize the temptation of ordering takeout. Planning meals and shopping with a list can prevent impulse purchases and reduce food waste. • Embrace the Home Café Trend: Investing in a quality coffee maker and brewing your own coffee can add joy to your day but also reduce your costs. • Set a Food Budget: Establishing a clear budget for dining out and groceries helps you track expenses and make more mindful spending decisions. Try allocating specific amounts to avoid overspending. Saving Tip #5: Leverage Senior Discounts if you are 60+ From transit to museums to groceries and drugstores, there are dozens of businesses that offer 10–20% off for seniors—but they don’t always advertise it. Many stores also have a set day of the week for seniors' discounts. Consider this: A $50 weekly purchase with 20% off saves $10—over $500/year. Savings Tips: • Shoppers Drug Mart has a 20% Seniors Day on Thursdays (for those 65+) • Rexall offers a 20% discount on Tuesdays • Many major retailers (e.g., Canadian Tire, Sobeys) offer senior discounts that vary by location—ask at checkout.  Cineplex has special pricing for seniors plus seasonal promos like $5 Tuesdays if you want to take the grandkids with you. Saving Tip #6: Mind Your Utilities and Insurance Reviewing these bills once a year can result in hundreds of dollars saved.  Consider switching to time-of-use electricity plans, which are offered in most areas. Check to see when cheaper rates are offered during off-peak hours, and look at using appliances such as your clothes dryer on off-peak hours.  You can also lower your insurance premiums by looking at options such as raising your deductible (if you’re comfortable with the risk). Also, look at rates offered by providers for “pay as you drive” insurance, especially if you aren’t using your car a lot. Also, if you are not bundling your home and auto insurance, you may be missing out on some savings. Saving Tip #7: Buy & Sell Online Many items we need can be found for a fraction of the cost used on platforms such as Facebook Marketplace and Kijiji. And remember, buying a used item also saves on tax. Many retirees have extra furniture, tools, collectibles, or tech they don’t need. It's now easier than ever to declutter and turn these unused items into extra cash. It’s All About Small Changes and Big Rewards Recessions are hard on everyone, but especially on those living on fixed incomes. The good news is that there are plenty of smart, manageable ways to reduce expenses without giving up all the good things in life. By becoming a more conscious consumer and checking in on your spending habits once or twice a year, you can save thousands of dollars annually—money that can be redirected toward travel, gifts for grandkids, or, if nothing else, it just may calm your nerves. Another Tip: Don’t Wait — Timing Matters If this trade war continues, housing values may dip, which means the equity you can access could shrink. Getting your Plan B in place now ensures you lock in flexibility and peace of mind before things tighten up.  Remember, it’s easier to get approved for a HELOC or reverse mortgage when you don’t urgently need it. It's better to set it up and keep it on standby than to wait until it’s too late. Talk It Out Stress develops in silence. Speak to family and friends about your concerns. They may not have all the answers, but they’ll provide emotional support — and possibly assist with paperwork or technical hurdles. If you have senior loved ones, check in and ask how they’re feeling about rising costs and uncertainty. These conversations go a long way and might even lead to better solutions. This trade war isn’t solely about economics. It involves peace of mind, dignity, and stability in retirement. While it may not be the type of Plan B that preoccupies the younger generation, it is equally important — perhaps even more so. So, take a breath. Make a plan. Get creative with your budget, and look at ways to save. Tap into your home equity if necessary, and don’t hesitate to ask for help. With the right Plan B, you can face the future with confidence — and perhaps even enjoy a little fun along the way.  Here's a handy checklist to help you get started.   Quick Wins Checklist ❏ Cancel one unused subscription ❏ Call your mobile carrier for a better deal ❏ Bring lunch instead of dining out 1x/week ❏ Use a coupon or flyer on your next grocery trip ❏ Look for a senior discount before you pay ❏ Brew your coffee at home 3 days this week ❏ Research potential discounts on your car insurance (bundling or pay-as-you-drive options) ❏ Use your clothes dryer or other appliances during off-peak hours to save on electricity Don’t Retire … Re-Wire! Sue

Cuts to Health Services Could Have Lasting Impact

Dr. Martine Hackett, associate professor and chair of Hofstra’s Department of Population Health talked to Newsday about the possible effects of $12.4 billion in federal cuts to health care services. The Department of Health and Human Services (HHS) issued a statement that the money being trimmed is mostly COVID-19-related, including vaccinations and testing. “When you’re preventing disease or a death, your success is sort of invisible,” she said. “By not investing these funds now, we will start to see the effects one year, five years, 10 years later.”

MEDIA RELEASE: Nominate now: the annual CAA Worst Roads campaign kicks off

The 14th annual CAA Worst Roads Campaign is live and CAA Manitoba wants citizens to voice their concerns and nominate the roads they want to see fixed. “Our research shows that 96 per cent of Manitobans are concerned about the state of our roads,” says Ewald Friesen, manager government relations at CAA Manitoba, “the CAA Worst Roads campaign gives Manitobans a voice in highlighting the roads they believe are in need of repair which provides a valuable snapshot to decision-makers.” A recent survey conducted by CAA Manitoba found that more than half of respondents have experienced vehicle damage because of poor roads. Eighty per cent paying out of pocket to repair them – up ten per cent from last year, only five per cent filing a claim with MPI - down 11 per cent from 2024. Eight per cent of Manitobans forwent repairs altogether.  According to the survey, poor road conditions, especially potholes and sunken sewer grates, are causing significant vehicle damage and increasing out-of-pocket repair costs for drivers. “Many Manitobans are experiencing the effects of the rise in the cost of living, including having to delay vehicle repairs. This makes investing in our roads and infrastructure more crucial than ever,” says Friesen. “We understand that consumers are being cautious with their spending, and many choose to keep their cars longer instead of purchasing new ones and stretching an already strained family budget." The damage caused to a vehicle by hitting a pothole can cost anywhere from $300 to $6,000, depending on the make and model of the car. The survey found that almost half of respondents paid between $500 to $1,999 to repair their vehicle, with an average cost of $882. “CAA Worst Roads campaign is a platform that gives Manitobans an opportunity to speak up and helps the different levels of government understand what roads are pain points for their constituents,” says Friesen. “We know the campaign works because we see governments prioritize budgets and move up road repairs every year after appearing on the CAA Worst Roads list,” adds Friesen. “This includes last year’s winner, 18th Street in Brandon, where we saw a swift, coordinated response between the municipality and the province.” Manitobans can nominate any road for issues ranging from congestion, potholes, poor road signs and the timing of traffic lights to pedestrian and cycling safety.  “Nearly 60 per cent of those who have ever participated in the campaign believe that nominating a road could result in the repair of it,” shares Friesen, “CAA Manitoba is calling on all road users to nominate the roads they believe need attention to help make our roads safer and show decision-makers what roadway improvements are important to Manitobans.” Nominations for the Worst Roads campaign can be submitted online at www.caaworstroads.com starting March 18 until April 11. Once the nominations are collected, CAA Manitoba will compile a list of the top 10 worst roads in the province, which will be announced to the public. CAA conducted an online survey with 1,014 CAA Manitoba Members between January 6 to 14, 2025. Based on the sample size and the confidence level (95 per cent), the margin of error for this study was +/-3 per cent.

Canada’s RRSP Program Has Too Many Jobs

Summary: Since its inception in 1957, the Registered Retirement Savings Plan (RRSP) has been a cornerstone of Canada’s retirement system. However, the RRSP has taken on roles far beyond its original mandate, notably through the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP). Although these programs provide short-term benefits, they significantly damage the long-term health of Canadians' retirement savings. This article explores how these additional roles are sabotaging retirement savings, highlights statistics about the state of RRSPs today, and discusses the disastrous impact these trends will have on future retirees. While listening to a recent economic presentation by Don Drummond, TD Bank's Chief Economist at the Mortgage Professionals Canada conference, the following stat stood out to me: "Median RRSP savings are $146K (RRSPs have been in existence for 6 decades)" I was stunned by how low this value was. Even with a government pension, in today's economic climate, to achieve a successful retirement, we need more than $146K saved. This prompted me to explore how the average value of RRSPs in Canada could be so low after some of us have had as much as 60 years to save. The average senior aged 65 in Canada receives $18,197 per year from OAS and CPP. If qualified for GIS, they would receive another $15,186 annually, for a total of $33,338 annually. This isn't much income, especially for homeowners who must pay for property taxes, utilities, upkeep, and maintenance. How it All Began At inception, the RRSP was called a Registered Retirement Annuity and was created in 1957. At the time, Canadians could contribute up to 10% of their income to a maximum of $2,500 annually. The goal was to give all Canadians the same tax benefits as members of registered employer-sponsored pension plans. Benefits of the RRSP Plan 1. Tax-Deferral: Contributions to an RRSP are tax-deductible, which can reduce your tax bill. 2. Tax-Free Growth: Your savings grow tax-free while the money is in the plan. 3. Retroactive: You can carry forward any unused contribution room to future years. The Multitasking Disaster Studies show that people are dreadful at multitasking; the same is true of government programs. Here is where the program went wrong. In 1992, the Home Buyer’s Plan (HBP) was made more flexible, which allowed first-time homebuyers to withdraw RRSP funds to buy a house. Then, in 1999, the Lifelong Learning Plan (LPP) was introduced, which permitted withdrawals to pay for education. The Home Buyers' Plan (HBP) was not introduced in 1957 alongside the Registered Retirement Savings Plan (RRSP) creation. Instead, the HBP was introduced in 1992 as a federal initiative to help Canadians buy their first homes by allowing them to withdraw funds from their RRSPs without tax penalties as long as they met specific conditions. Here's a timeline of crucial HBP withdrawal limits since its inception: Timeline of HBP and LLP Withdrawal Limits: 1992 - Introduction of the HBP • Maximum Withdrawal Limit: $20,000 per individual. • Purpose: To help first-time homebuyers purchase or build a home. 1999 – Introduction of Lifelong Learning Plan (LLP) • The annual withdrawal limit is $10,000 per individual • The lifetime withdrawal maximum is $20,000 per individual 2009 - First HBP increase • New Limit: $25,000 per individual. • The increase was introduced as part of federal budget changes to reflect rising housing costs. 2019 - Second HBP Increase • New Limit: $35,000 per individual. • Announced in the 2019 federal budget to support affordability for first-time homebuyers. 2019 -HBP Enhancement for Life Events • The HBP was expanded to allow individuals experiencing a marriage or common-law partnership breakdown to participate, even if they were not first-time homebuyers. 2024 - Recent increase • New Limit: $60,000 per individual. • The increase was introduced as part of federal budget changes to reflect rising costs. A Flawed Strategy The Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) were introduced in Canada as tools to make housing and education more accessible. While well-intentioned, these programs effectively allow individuals to borrow from their future retirement savings—a strategy that can have significant negative consequences. Ask any high school economics student, and they will tell you that compromising two of the three main elements (principle and time) in investing growth will lead to a disappointing return. Here is the formula: principle X interest + time = compounded return. Are We Borrowing From the Future to Pay for Today? The Problem with the Home Buyers’ Plan (HBP): Addressing Housing Affordability at the Expense of Retirement The HBP permits individuals to withdraw up to $60,000 from their RRSP to buy a first home. In an environment of rising house prices, this measure may help buyers cobble together a down payment, but it drains retirement funds. The funds are unavailable to grow tax-free over decades, diminishing the compounding returns essential for retirement security. The Problem with the Lifelong Learning Plan (LLP): Financing Education by Sacrificing Retirement The LLP allows up to $20,000 in RRSP withdrawals to fund education, which can help individuals upskill. However, education often doesn’t yield immediate returns, and the withdrawn funds lose their growth potential, including the compounded returns. Why This Harms Future Retirees Issue #1: Loss of Compounding Growth Withdrawals disrupt the power of compounding, which is vital for retirement savings. For example, $35,000 left in an RRSP for 25 years at a 6% annual return could grow to over $150,000. If that same $35,000 were withdrawn 15 years ago and repaid over the same period as required by the HBP program, it would be worth $54,311, a loss of $95,689 Issue #2: Repayment Struggles While repayments are required, life’s expenses (mortgage, childcare, loans) often make it hard to repay on schedule. Failure to repay means the amount withdrawn is added to taxable income, further reducing the effectiveness of the programs. Issue #3: Insufficient Savings Most Canadians are already under-saving for retirement. Encouraging them to dip into their RRSPs exacerbates this shortfall. Two Different Problems.  One Harmful Solution Housing Affordability Rising house prices are driven by supply-demand imbalances, speculation, and policy failures—not a lack of down payments. Increasing the HBP withdrawal limit does nothing to address the root causes of affordability, but it may drive prices higher by giving buyers more purchasing power. Retirement Security Retirement savings should be preserved and grown to ensure financial stability in later years. Programs like HBP and LLP blur the line between short-term needs and long-term planning. Why Would our Government Do This? Political Expediency Housing affordability and access to education are politically sensitive issues. Allowing individuals to tap into their RRSPs is a cost-neutral policy for the government (unlike direct subsidies or programs). Policies like these help politicians get elected or stay in office. And in proper political form, these policies only tell half the story. Vote for us because we will help you buy your first home, which is a great campaign strategy. Vote for us because we will make it look like we help you buy your first home when, in fact, we will set up a program that will allow you to borrow from yourself at the cost of your retirement, which is political suicide. Short-Sighted Economic Policies Policymakers may believe that homeowners and educated individuals are more financially secure, even if their retirement savings are compromised. The logic might be that owning a home or having better job prospects could mitigate future hardship. Assuming Home Equity is a Safety Net The government might assume that homeownership ensures financial stability in retirement. However, this overlooks that rising housing costs often mean seniors have high debt levels or are "house rich but cash poor." The Bigger Problem with the HBP and LLP Programs: No Warnings or Education Given to Canadians Neither the HBP nor the LLP adequately informs individuals of the long-term consequences of their decisions. To make matters worse, the participants of these programs will likely realize the impact once it is too late to take action. People considering retirement are often in their late 50s to early 60s, past their prime saving years. Borrowing from retirement accounts may seem like “borrowing from yourself,” but this lost growth can never be recouped. Many Canadians are not well enough informed to assess these trade-offs, leading to decisions that harm their financial future. In Case You’re Thinking, These Seniors Have Inadequate Savings - But at They At Least their Homes. The HBP and LLP programs may reflect a government view that seniors would be better off owning a home than relying solely on inadequate savings. But this is flawed for a number of reasons: A home is not a liquid asset—it cannot pay for groceries or healthcare. Also,  Seniors with insufficient retirement savings often need help with financial distress despite owning property. They sometimes need reverse mortgages or sell their homes out of desperation. An Unfortunate Misguided Solution Rather than “quick fixes” that appear to solve immediate challenges while creating long-term problems, the Federal government should instead focus on longer-term, systemic solutions For housing: Governments need to curb speculative investments and provide targeted assistance for first-time buyers. Plus they need to focus on programs that increase housing supply, such as income tax incentives for homeowners to build accessory dwelling units (ADUs). These units could be rented out or used for caregivers. Or adopt a policy allowing first-time home buyers to not pay tax on their first $250,000 of income. First-time home buyers could use the tax savings as a down payment. For Education: Governments need to expand grant programs and low-interest loans to prevent reliance on retirement funds.  This will not only help us increase the number of skilled workers to fill critical gaps in vital sectors such as technology, healthcare engineering and the trades.  It will also contribute to a higher GDP and build a more sustainable tax base for future generations. Encouraging Canadians to steal from their future is not a sustainable strategy. Retirement savings should be viewed as sacred - not a piggy bank for solving unrelated issues. Don’t Retire … Re-Wire! Sue

ChristianaCare Reduces Health Care Costs by $6.2 Million While Improving Care for Medicaid Patients

ChristianaCare’s Delaware Medicaid Partners Accountable Care Organization (ACO) has set the standard for innovative, high-quality care at lower cost for the State of Delaware’s Medicaid population. According to the most recent data available, ChristianaCare’s ACO reduced health care spending by $6.2 million in 2023 while improving care for nearly 30,000 Medicaid beneficiaries in Delaware, including approximately 8,000 children. “We’re demonstrating that population health works,” said Christine Donohue-Henry, M.D., MBA, chief population health officer, ChristianaCare. “Our neighbors count on us to take care of them — and we can improve their health while also helping the state reduce health care costs. We do this by delivering high-quality care that emphasizes preventive care and proactive management of health conditions, and by investing in our population health infrastructure. “In this way, we can keep people healthier and reduce the need for them to access the most expensive kinds of care, such as emergency care and hospitalization.” ChristianaCare’s Medicaid ACO includes more than 1,900 primary and specialty care clinicians who partner with patients and families to prevent illness, manage chronic diseases and help them achieve their health goals. The ACO makes it easy for adults and children to get the screenings and treatments they need, improving overall health. ChristianaCare’s Medicaid ACO is one of four authorized by the State of Delaware and the only one to voluntarily accept downside financial risk at its launch in 2021, which means that if ChristianaCare’s Medicaid ACO is not successful in reducing cost and improving care for a particular year, the ChristianaCare ACO is required to make a payment to the state. By sharing in both savings and losses, the ACO controls state health care costs while maintaining high-quality care. Bending the Cost Curve by Focusing on High-Quality Preventive Care Alongside financial savings, ChristianaCare’s Medicaid ACO has improved care quality and worked to reduce health disparities. By focusing on preventive care, the ACO has helped adults and children get the screenings and treatment they need, leading to better health outcomes and fewer unmet needs. Since launching in 2021, ChristianaCare’s ACO has met all required quality standards and consistently improved its performance each year on key measures like diabetes management, blood pressure control and breast cancer prevention. Year over year, breast cancer screenings have increased by 4%, while patients with high blood pressure (hypertension) have shown improvement in blood pressure control. Notably, healthy blood sugar levels (HbA1c less than 8%) have also improved in patients with diabetes by 7%. In collaboration with its Medicaid health plan partners, ChristianaCare primary care and imaging teams host patient-centered health and wellness day events to increase access to care, close quality gaps and improve the overall health of the communities they serve. These events help patients get preventive screenings and services, supporting the ACO’s goals of better care and health equity. The ACO’s success is driven by its focus on caring for entire families, including addressing the needs of pregnant mothers and supporting children and adults throughout their lives, according to Rose Kakoza, M.D., MPH, senior clinical network director, ChristianaCare Clinical Alliance. Key programs include enhanced maternity care to support mothers and infants, expanded mental health services and social support programs that address food and housing needs. By integrating clinical care with social support — such as help with food and housing — the ACO is working to break cycles of poor health across generations. This approach also has practical benefits. For example, the improved mental health of a parent strengthens the family environment, supporting children’s well-being and development. “By making significant investments in population health and addressing both medical needs and the social drivers of health, we’ve not only improved health outcomes but also more effectively managed costs for Delaware’s most vulnerable residents, helping to reduce state spending,” Kakoza said. About Delaware Medicaid Partners Delaware Medicaid Partners ACO, led by ChristianaCare, uses a family-centered approach to save money and improve care for Medicaid patients. By combining medical care with social support, the ACO addresses the unique needs of Medicaid patients, improving health and promoting equity. Care coordination is provided by ChristianaCare’s CareVio®, whose team of nurses, social workers, and pharmacists help patients with serious health conditions get the care they need. CareVio uses real-time data to prevent complications that could lead to unnecessary hospital stays or emergency visits. Through ongoing collaboration and innovation, Delaware Medicaid Partners ACO aims to set an example for other states working to improve care while managing costs.

Sen. Gillibrand Taking No Chances in Upcoming Election

Newsday talked to Lawrence Levy, associate vice president and executive dean of the National Center for Suburban Studies, about the New York Senate race between incumbent Kirsten Gillibrand and Republican Mike Sapraicone. Even though polls show that Gillibrand has a double-digit lead over Sapraicone, she is raising millions of dollars and investing in television ads to ensure her reelection. “Despite some recent Republican successes, New York is still very blue when it comes to statewide elections,” said Dean Levy. He added there is little reason to think that “an upset is in the making.”

With tremors in Japan - are we ready if an earthquake hits?

In an era where natural disasters are increasingly becoming a focal point of global concern, earthquake preparedness stands as a critical topic for public safety and resilience. With millions of lives and billions of dollars in infrastructure at risk, the importance of readiness cannot be overstated. This topic is not only timely due to recent seismic activities around the world but also due to its broader implications for disaster response, urban planning, and community resilience. Understanding and implementing effective earthquake preparedness measures can mitigate the devastating impact of these natural disasters, making it an essential subject for public discourse. Key story angles include: Advances in early warning systems: Explore how technology is improving early detection of earthquakes, potentially saving lives by giving communities crucial time to take protective actions. Urban planning and infrastructure resilience: Investigate how cities are adapting their infrastructure to withstand earthquakes, including the retrofitting of buildings and the development of earthquake-resistant structures. Community education and public awareness: Discuss the importance of community-based education programs in promoting earthquake preparedness, including drills, emergency kits, and public information campaigns. Government policies and disaster response: Analyze the role of government policies in disaster preparedness, focusing on how local, state, and federal agencies coordinate to prepare for and respond to earthquakes. The economic impact of earthquake preparedness: Examine the cost-benefit analysis of investing in earthquake preparedness, including the potential savings in terms of reduced damage and faster recovery. Global lessons and best practices: Compare earthquake preparedness strategies from different parts of the world, highlighting best practices that could be implemented in earthquake-prone regions globally. By delving into these angles, journalists can provide comprehensive coverage of earthquake preparedness, offering valuable insights that can help communities better protect themselves against the inevitable threat of seismic events. Connect with an expert about earthquake preparedness: To search our full list of experts visit www.expertfile.com Photo Credit: Chandler Cruttenden

Forbes Ranks ChristianaCare Among America’s Best Employers for Women in 2024

ChristianaCare has been recognized as one of America’s Best Employers for Women by Forbes for 2024, marking the first time the company has received this prestigious recognition. In a survey of 150,000 women working for companies of at least 1,000 employees in the U.S., ChristianaCare ranked 150 on the list of 600 employers that were recognized. “This important recognition is a testament to our culture and the remarkable women who have chosen to build meaningful careers at ChristianaCare,” said Chris Cowan, MEd, FABC, ChristianaCare’s Chief Human Resources Officer. “Empowering women to succeed is integral to our culture and strengthens our organization. Together, we’ll continue to advance equity and inclusion in the workplace while transforming health and clinical care.” Forbes partnered with market research firm Statista, which surveyed employees on various aspects such as workplace environment, growth opportunities, compensation, diversity, parental leave, schedule flexibility and family assistance. ChristianaCare continues to cultivate a strong, inclusive, and diverse culture for women inside and outside the company by investing in professional development through its Women’s Employee Network (WEN) and providing a comprehensive benefits package that includes various flexible leave options for employees, including at least 12 weeks of paid parental leave. “Receiving this recognition from Forbes is an honor,” said Pamela Ridgeway, MBA, MA, SPHR, chief diversity officer and vice president of Talent and Acquisition at ChristianaCare. “In addition to offering workplace benefits such as paid maternity and paternity leave, ChristianaCare is firmly committed to empowering and advancing talented individuals within the workplace. Receiving this award for the first time signifies our unwavering dedication to ensuring that every individual has a voice and feels truly valued within our organization.” The Forbes recognition follows other national recognitions of ChristianaCare’s commitment to an inclusive workplace. Earlier this year, Forbes ranked ChristianaCare as one of the best employers for diversity in the U.S. Additionally, Forbes ranked ChristianaCare as the top health care employer for veterans in the United States. Both ChristianaCare’s Wilmington Hospital and Christiana Hospital have been named Leaders in LGBTQIA+ Healthcare Equality since 2012.

ChristianaCare, Delaware’s Largest Private Employer, Raises Minimum Wage to $16.50 an Hour

ChristianaCare has increased its minimum wage to $16.50 an hour effective July 21, 2024. The new $16.50 per hour minimum wage exceeds federal, Delaware, Maryland, New Jersey and Pennsylvania minimum wage rates. “At ChristianaCare, we are committed to creating health so that people can flourish, and that begins with our caregivers,” said ChristianaCare System Chief Operating Officer Ric Cuming, Ed.D., RN, NEA-BC, FAAN. “By investing in our caregivers and supporting their wellbeing, we support their ability to provide the very best care to our patients." ChristianaCare is the largest private employer in Delaware with nearly 14,000 employees. This is the second time in recent years that ChristianaCare has raised its minimum wage; in 2019, ChristianaCare was among the first health systems in the region to raise its minimum wage to $15/hour. This new increase to ChristianaCare’s minimum wage impacts approximately 850 caregivers who were below or near $16.50/hour. Download "It's important for us to lead by example in paying wages that support the financial wellbeing of our workforce,” said Chris Cowan, MEd, FABC, ChristianaCare’s Chief Human Resources Officer. "Substantially increasing wages is one way we continue to attract and keep top talent at all levels in this highly competitive market. By recognizing the valuable contributions of our caregivers, we can enhance staff retention, boost morale and support an exceptional experience for everyone we serve.” The increase is a part of ChristianaCare’s overall Total Rewards package for its caregivers, which includes a wide variety of benefits and support for caregivers and their families through all stages of life. Learn more about ChristianaCare’s Total Rewards here.