:format(jpeg)/s3.amazonaws.com/arc-authors/tgam/b3222008-b98d-42c8-8830-02e465b09bea.JPG)
The Bank of Mom and Dad is the tiresome catchphrase for parents helping their adult children. What do we call it when those kids support their parents?
I’m open to ideas on that. Meantime, I want to dig into the economics of adults providing financial support to parents. Below, you’ll find an anonymous survey for people aged 18 and older. Stand by for a full report on the findings.
There’s some demographic urgency to the issue of adults supporting their parents. Canada’s population is aging, and life expectancy keeps rising. The 2021 census shows that one of the fastest growing age groups is people who are 85 and older. During their working years, were these seniors able to save enough for 25-plus years of retirement? Let’s find out.
Subscribe to Carrick on Money
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
Rob’s personal finance reading list
What’s hot in mortgages
Not variable rate loans – they’re largely being ignored right now. What’s hot are short-term fixed rate mortgages.
31 ways to save on groceries
Food prices have been rising sharply for more than a year now, so you’ve probably explored a lot of ways to cut your spending at the grocery stores. If you’re open to new ideas, check out this thorough list.
The instant investment portfolio
A review of all-in-one exchange-traded funds, a kind of ETF that combines all the stocks and bonds you need for a diversified portfolio into a single fund. Also known as asset allocation funds, these products are an ideal way to invest for the long term. Now, for some further advice on picking the right all-in-one ETF. And, finally, a look at a couple of all-in-one funds that hold only stocks from Canada and around the world.
Why people fear retirement
It’s all about fear of the unknown. For some people, working gives them more control over their lives.
Ask Rob
Q: How long can you carry forward the tax deduction from a First Home Savings Account and, once you open an account, what about carrying forward unused contribution room? My son is still a student, so the tax deduction will be useless for several years and we won’t be able to help him fund the account for a few years.
A: The tax deduction for an FHSA can be carried forward indefinitely. You can carry forward up to $8,000 in unused contribution room per year. If you open an account this year and contribute nothing, you could add $16,000 to the account next year. That’s the maximum $8,000 for 2024, plus $8,000 carried forward from 2023.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tools, Explainers and Guides
How household debt in Canada compares to countries around the world.
The money-free zone
Have you tried Hi-Chew, a chewy fruit candy from Japan? I’m not a big candy guy, but these are something else. Mango is the best.
Watch this
Your boss wants you back in the office rather than working at home? Here are some ways to negotiate this move so it works for you as well as your employer.
From the Twitterverse
Why are Canadians buying less food?
In case you missed these Globe and Mail personal finance-related stories
- For thousands of variable-rate mortgage holders, another rate hike would be no joke
- How to reinvest dividends? Let us count the ways
- Thank your local university for your higher rent bill
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Why millennials and Gen Z are Alberta-bound for a more affordable life • Rising interest rates brought pain for new homeowners – and opportunity for house hunters • Why more Canadians are choosing to be child-free or delay parenthood • Love in the time of inflation: How to manage rising costs when dating • You're not bad at money – you're suffering from money shame • Retirement might look different for Gen Z and millennials. Here's how to plan for it • Recession-beating tips for the job market, housing, investing and the cost of life • Is the middle class dead for millennials and Gen Z?
- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home down payment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle