Monday, March 28, 2011

Deep in debt, spendthrift up against retirement



Situation Civil servant with negative net worth

Strategy Rein in spending, work part-time, pay debts

Solution More discretionary income

In Vancouver, a woman we'll call Suzette, 58, has put 37 years into her job and wants to retire in a few months, then return to work part-time. She will have to work to supplement her pension, for her financial cupboard is almost bare. Her assets are $2,500 in an RRSP. Period. She lives on credit. She rents a home from her ex-husband for $900 a month, which is 18% of her $4,983 monthly take-home income.

CLICK HERE for the entire story from The Financial Post

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