Retirement Ready 2017

2017

How to retire ■Draft a winning plan ■Hatch a fat nest egg

Where to retire ■B.C.’s two top spots ■Retirement châteaus

When to retire

Why to retire ■ Free university tuition ■ Time for a makeover

■Maximum exit strategy ■Countdown to R-Day

RETIREMENT READY

THE ULTIMATE RETIREMENT GUIDE MAGAZINE FOR BRITISH COLUMBIANS

■ Real cheap Caribbean destinations ■ Surviving a grey divorce ■ Nip, tuck and proud of it ■ Some happy seniors will never retire

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ARE YOU READY FOR RETIREMENT?

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During retirement I might… Learn a new language.

See the Northern Lights.

Start a new business.

Run a marathon.

Live in the moment.

Downsize.

Winter down south.

Enjoy adventures with the grandkids.

Are you ready for 30 years of retirement?

Retirement’s changed. And because it’s lasting longer than ever before, it’s full of endless possibilities. That’s why we approach it differently.

8F XPSL XJUI ZPV UP k HVSF PVU UIF SFUJSFNFOU ZPV XBOU 5IFO XF MPPL BU FWFSZUIJOH JODMVEJOH what you have and what you owe, to get you there. And throughout your journey we’re there to help you adapt to whatever you might encounter along the way.

Nearing retirement?

® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Financial planning services Come inarefor a whole conversation. and investment advice provided

by Royalnew Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust $PSQPSBUJPO PG $BOBEB BOE 5IF 3PZBM 5SVTU $PNQBOZ BSF TFQBSBUF DPSQPSBUF FOUJUJFT XIJDI BSF BGk MJBUFE 3.'* JT MJDFOTFE BT B k OBODJBM TFSWJDFT k SN in the province of Quebec. © 2017 Royal Bank of Canada.

rbc.com/mynext30

® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Financial planning services and investment advice are provided by Royal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of $BOBEB 3PZBM 5SVTU $PSQPSBUJPO PG $BOBEB BOE 5IF 3PZBM 5SVTU $PNQBOZ BSF TFQBSBUF DPSQPSBUF FOUJUJFT XIJDI BSF BGk MJBUFE 3.'* JT MJDFOTFE BT B k OBODJBM TFSWJDFT k SN JO UIF QSPWJODF PG 2VFCFD Ì 3PZBM #BOL PG $BOBEB

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CONTENTS COLUMNS Countdown to R-Day Wills: leave ‘em laughing Aging and dementia Pension pressure Grey divorce Exit, with money

8 10 12 13 14 18

2017

Where to retire ■B.C.’s two top spots ■Retirement châteaus

When to retire ■Maximum exit strategy ■Countdown to R-Day

Why to retire ■ Free university tuition ■ Time for a makeover

RETIREMENT READY

FEATURES Prepping for retirement ‘I sold the business’ Re-booting life Retirement? No thanks Reverse mortgages: are they for you?

New styles in seniors’ residences Retiring to the Okanagan Retiring to Vancouver Island Retiring to the Caribbean on the cheap DIY fitness Senior class Nip and tuck

How to retire ■Draft a winning plan ■Hatch a fat nest egg

THE ULTIMATE RETIREMENT GUIDE MAGAZINE FOR BRITISH COLUMBIANS

6 16 20 22

■ Real cheap Caribbean destinations ■ Surviving a grey divorce ■ Nip, tuck and proud of it ■ Some happy seniors will never retire

26 28 32 34 36 40 42 45

RETIRING TO THE CARIBBEAN – 36 There are sun-blessed islands that boast turquoise-blue waters and powder-white beaches, but where it doesn’t cost a fortune to retire

RETIREMENT? NO THANKS — 22

PUBLISHER: Sue Belisle VICE-PRESIDENT, AUDIENCE AND BUSINESS DEVELOPMENT: Kirk LaPointe EDITOR: Frank O’Brien DESIGN: Randy Pearsall PRODUCTION: Rob Benac WRITERS: Mike Beishuizen,

Patrick Blennerhassett, Cindy David, Pat Johnson, Arthur Klein, Glen Korstrom, Baila Lazarus, David Lee, Lorne MacLean, Peter Mitham, Frank O’Brien, Amy Smart, Mary Jane-Wilson, Yvonne Zacharias PROOFREADER: Meg Yamamoto ADVERTISING SALES: Dean Hargrave, Pia Huynh, Blair Johnston, Joan McGrogan, Steve Micolino, Corinne Tkachuk, Laura Torrance, Chris Wilson ADMINISTRATORS: Katherine Butler, Marie Pearsall SALES OPERATIONS MANAGER:

For these four famous B.C. seniors – and at least 17 per cent of other Canadians over age 65 – work is just too interesting and rewarding to consider retirement

Michelle Myers RESEARCH: Anna Liczmanska, Carrie Schmidt

Retirement Ready 2017 is published by BIV Magazines, a division of BIV Media Group, 303 Fifth Avenue West, Vancouver, B.C. V5Y 1J6, 604-688-2398, fax 604-688-1963, www.biv.com.

REBOOTING — 20 Boomers and near-retirees find new life in new businesses

NEW STYLES IN SENIORS’ RESIDENCES — 28

Copyright 2017 Business in Vancouver Magazines. All rights reserved. No part of this book may be reproduced in any form or incorporated into any information retrieval system without permission of BIV Magazines. The list of services provided in this publication is not necessarily a complete list of all such services available in Vancouver, B.C. The publishers are not responsible in whole or in part for any errors or omissions in this publication.

ISSN 1205-5662 Publications Mail Agreement No: 40069240. Registration No: 8876. Return undeliverable Canadian addresses to Circulation Department: 303 Fifth Avenue West, Vancouver, B.C. V5Y 1J6 Email: subscribe@biv.com Cover: Signals Design

Not your grandma’s retirement home

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YOU ARE ALREADY HERE

L

ooking for a great retirement destination in the world? Somewhere the climate is fairly mild, the safety net is generous, the streets are safe and everyone speaks your language?

Look out the window. You are already here.

The latest Global AgeWatch Index ranked Canada among the top five countries in the world when it comes to the well-being of its older residents, based on economic security, health and other factors.

The list was compiled by HelpAge International, a London-based non-profit with affiliates in 65 countries. The 13 indicators measured in the index include life expectancy, coverage by pension plans, access to public transit, and the poverty rate for people over 60.

The report found 97.7 per cent of Canadians 65 and over receive a pension and 91.3 per cent of those 60 or better have an income that is more than half the national median.

It also found that Canada was ranked No. 4 globally for the health status of its senior population.

Switzerland and Germany, Norway and Sweden joined Canada in the top five. When one considers the cost of living, Canada is more affordable than any of these European destinations and is statistically safer and has lower medical costs than the U.S., which was ranked eighth.

Many warmer countries make a pitch as a retirement destination for Canadians, but of these Mexico ranks 33rd, Thailand 34th and Costa Rica 28th, according to the Global AgeWatch Index.

So we are comfortable in ranking Canada No. 1 in the world for retirees. And, according to surveys from Bank of Montreal, B.C. is the preferred retirement destination for Canadians from less-blessed provinces. A Statistics Canada report shows that seven out of 10 Canadian municipalities with the highest proportion of seniors are already in B.C., including Parksville, Sidney, Creston and White Rock. In Qualicum, nearly one out of every two people is over age of 65, one of the highest ratios in the world.

Retirement ready? If you are living in B.C. you already have an important part of the plan covered.

Frank O’Brien Editor

NUMBER AND PERCENTAGE OF TOTAL WORLDWIDE POPULATION OF PEOPLE 60+

901m 12.3% 1.4b 16.5%

2015

2030

2.1b 21.5% 2050 SOURCE: UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS, POPULATION DIVISION, 2015

February 15, 2017 4 p.m. – 6 p.m.

An important question faces you, whether you’re approaching retirement or in midcareer thinking about once you’ve stopped working: Are you retirement ready? It’s a particularly important question in British Columbia, where one-third of the population is nearing 50 and 17 per cent has already achieved senior status.

Panellists:

Moderator:

Shane King National leader, succession services, MNP LLP

An unprecedented demographic shift will shake the economic and social foundations of our province. With the help of leading experts, the BIV Retirement Ready panel Kirk LaPointe VP, audience & business discussion will investigate how and when to retire and how to embrace what should be development, Business in Vancouver the triumphant years of a longer life.

Ilana Schonwetter Investment adviser, BlueShore Financial

Adrian Bois Director, individual plans, Pacific Blue Cross

WHERE: Shangri-La Hotel | 1128 West Georgia St., Vancouver | PRICE: Subscribers: $49 | Non-subscribers: $59

For more information visit biv.com/events/retirementready PRESENTED BY:

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Getting ready

PREPPING

FOR RETIREMENT

There is no template – except that retirement may last much longer than you think it will

PAT JOHNSON

R

etirement just doesn’t mean what it once did. When 65 was selected as the retirement age, the average life expectancy was around 70. Today, retirement might happen at 55 or 75, give or take a decade and, as a result of advances in lifespans, retirement might last 30 or 40 years.

Christine Van Cauwenberghe, vice-president, tax and estate planning, Investors Group: “generally speaking it’s not a problem if you die with too much money” | SUBMITTED

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This is great news for golfers, travellers and avid hobbyists. But it also presents challenges – not least to the social safety net but also to individuals who are planning a future of indeterminate but likely many years of leisure.

For the purposes of financial planning, “retirement” is an amorphous and not necessarily useful term, says Aeronn Zlotnik, an associate with ZLC Financial.

“I use the term financial independence,” says Zlotnik.

“I think that’s a fantastic term to describe the day that you no longer have to work.”

Some people retire earlier and some are carried out of the workplace in a box. Sometimes this is a choice and sometimes it is not. Much depends on planning.

In a survey of financial planners about prepping for a successful retirement, this is the message upon which everyone agrees: there is no template.

“Everyone has a very different idea of what retirement is going to look like,” says Christine Van Cauwenberghe, vice-president, tax and estate planning, for Investors Group. “The starting point for most people when they’re doing a retirement plan is to get a good sense for what that personal objective may be.”

When the proverbial, yet very often real, 55-year-old client with no retirement strategy lands in the chair

opposite them, all financial planners agree on the first steps. They will ask what the potential retiree imagines that new phase of life will be, to review his or her current financial situation and then try to square the two.

Is there a workplace pension? How much can be expected from government pensions? What registered savings and other investments does the client have?

How much equity is in their home? Do they have debt?

■On that last question, Cauwenberghe counters the conventional wisdom that retirees should be debt-free.

“It’s really difficult to say that debt is a bad thing in all scenarios,” she says. “In some cases, people have a significant portfolio and they’re saying, ‘Well, I could cash out part of my portfolio, but that would trigger [capital] gains or I would have to take money out of my RSPs and I just don’t want to incur those kinds of taxes.’”

Having the resources to counterbalance debt is different from having few or no assets while sitting on a load of credit card or other consumer debt, she cautions.

In terms of building and protecting a nest egg, there is a potential contradiction between need and prudence.

The closer one is to retirement, the more pressure one SMART DEBT

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George Tsamis, regional vice-president of RBC: invest early, invest regularly, invest enough, diversify and have a plan | SUBMITTED (LEFT) Aeronn Zlotnik, associate

with ZLC Financial: think of retirement as “financial independence” | CHUNG CHOW

may feel to build savings or investments quickly, precisely at the time when the risk-taking associated with high returns is most hazardous.

“It really is person-specific,” Cauwenberghe says.

“But you need to be honest with yourself and honest with your planner as to how much volatility you can handle, and if you can’t handle much volatility, you need to look at perhaps something like a guaranteed investment fund, where you may be paying a little more in terms of the annual fees, but that guarantees certain payouts.”

The unknowable variable in retirement planning is that we do not know how long we will live.

“Generally speaking,” she says, laughing, “it’s not a problem if you die with too much money.”

But there are other variables to consider beyond life expectancy.

“You also have to consider things like disability, critical illness, long-term care insurance. There’s all kinds of different living benefits that may be necessary as part of your plan,” says Cauwenberghe.

Being a financial planner can verge into relationship counselling at times.

“The conversations people have with their financial planner can get to the heart of what people want in life – and sometimes partners find they don’t have the same goals,” says George Tsamis, regional vice-president

of RBC. “Quite often you’ll find individuals who have contrasting goals in retirement.”

Once an adviser understands the client’s goals, then it’s really about setting up a plan, Tsamis says. “Depending on the age they come to you, there’s certain things you can or cannot do, but we take a look at five principles to very successful investing, and they are: investing early, investing regularly, investing enough, diversifying your portfolio and having a plan. I think the last step is the most important.”

Another variable for B.C. retirees is real estate. While other Canadians may have been socking away money in savings or investments, those in Metro Vancouver were more likely paying down enormous mortgages. This can translate into some sweet equity, but it may also mean all the eggs are in one basket that is dependent on a growing real estate market.

If an older couple is sitting on a mortgage-free, million-dollar, four-bedroom house, they may consider liquidating and moving into a $500,000 apartment (or a spread in the Okanagan or on Vancouver Island).

Sophie Salcito, a wealth adviser at Vancity, says a lump-sum investment of $500,000 at four percent will generate $20,000 a year in income (before inflation and taxes). This may not be a windfall, but, she notes, it’s more than you will get rattling around for years in a too-big house. É

Retirement incoming.

Get the expert advice you need for a happy and secure landing. Talk to us.

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Getting ready

COUNTDOWN TO R-DAY Whether you are age 30, 40 or 50, the time to start thinking about retirement is today

CINDY DAVID |

W Yes, 90 is the new 80, and by the time you reach age 80, 100 will be the new 90

What you need to save to achieve an annual retirement income of $50,000, after-tax, indexed by two per cent.

■At 30 years of age: monthly savings required: $2,192 Required savings by age 65: $2,008,004

■At 40 years of age: monthly savings required: $3,195 Required savings by age 65: $1,647,263

■At 50 years of age: monthly savings required: $5,475 Required savings by age 65: $1,351,330

hen is the right time to start thinking about retirement? Obviously the sooner you start saving, the better, but what is the cost of waiting to save?

Let’s start with assumptions. The first is “Let’s be conservative”. For all examples I use a five per cent return spread between two per cent interest, 1.5 per cent dividends and 1.5 per cent realized capital gains.

This breakdown is important for tax purposes. If conservative to you means buying guaranteed income certificates, then you would have to cut this in half and assume 100 per cent interest, which would almost double the required savings suggested in the examples below (see sidebar). Two other constants in my examples are that everyone is going to live to age 90 and that inflation is two per cent. If you want to be ultra-conservative when running a retirement plan, I would suggest using 3 per cent to “acid test” longterm results, but for the purpose of this article we will reflect today’s inflation and moderate return environment. And yes, 90 is the new 80, and by the time you reach age 80, 100 will be the new 90.

I’m surprised how often clients argue against their longevity. People are living longer, it’s a fact, and it’s important to plan for it.

Average income in British Columbia in 2014 was $76,770, before tax. So let’s say you qualify for the maximum Canada Pension Plan and old age supplement at age 65, which would cover $20,000 of your required income. Last but not least, the numbers below assume that you

are saving to a non-registered account, which is a fairly simplistic approach as many of you will save to a registered retirement savings plan (RRSP) if you’re in higher-income tax brackets now. My rule of thumb is save to an RRSP if your income is above $90,563 and your RRSP and deductions do not drop taxable income below that amount.

If you are in lower-income brackets, start first with saving to a tax-free savings account. If you are an incorporated business owner and starting to accumulate cash, consider creating a holding company and allocate retirement savings to it.

I often cringe when I see articles stating f latly that you need ‘X’ amount to retire at 65, because there are so many factors that need to be taken into account to truly come up with an accurate figure. If you go to three different financial planners you will end up with three different financial plans, and the reason is hidden in the assumptions.

The following is what you need to consider when putting together a financial plan: INFLATION RATE

■This is the

single most impactful assumption; using a higher rate is more conservative, meaning bigger raises each year throughout retirement ensuring that you don’t go broke slowly over time.

gains are realized in the projection.

This is more conservative than treating a portion of your portfolio as though it’s an RRSP or a tax-free savings account.

WHICH SAVINGS OR INVESTMENT BUCKET DO YOU SPEND FROM FIRS T? ■T he order of

spending can make an enormous difference on how much you can spend, as well as how much you leave behind for your beneficiaries.

WHEN TO TRIGGER PENSION INCOME. ■Take the CPP early, at age

65 or defer to age 70? This needs to be considered on a case-by-case basis, but we often end up advising clients to take CPP early.

One final note: financial plans change the minute your report is printed. So remember that an ongoing review, checking regularly to make sure you are still on track, and adjusting along the way, is as important as making the decision to retire.

Cindy D. David, CFP, CLU, FEA, TEP, is president of Cindy David Financial Group Ltd., Vancouver. www. cindydavid.ca

ARE YOU USING CONSERVATIVE LONG-TERM GROWTH ASSUMPTIONS? AND HOW IS IT BEING TAXED? ■For instance, don’t let

any of the return fall under deferred growth and make sure all capital

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Go beyond banking

Retirement incoming.

With retirement getting closer, it’s time to take steps to prepare for a smooth financial transition and ensure reliable, lifelong income. Get the expert advice you need for a happy and secure landing. Talk to us.

ŠBlueShore Financial Credit Union

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Getting ready

WILLS: LEAVE ’EM LAUGHING An unequal distribution of personal items among family members can cut to the heart of relationships MIKE BEISHUIZEN |

T Some of the biggest disputes are about the smallest of things

here are countless stories about family disputes after a loved one has died. Maybe it was Dad’s pocket watch that everyone wanted, or maybe John was given more than Joan. Estate disputes within families can cost tens, even hundreds of thousands of dollars in legal fees, and even tear families apart. But, with a properly prepared estate plan, the chance of these disputes can be greatly reduced.

PERSONAL EFFECTS ■Some of

the biggest disputes are about the smallest of things – personal items.

Unlike money, these cherished belongings can’t simply be split two or three ways. Typically, these disputes happen where there is no will or the will simply divides everything among a group of people with no further detail. There are many techniques that you can use in advance to help eliminate these disputes.

With certainty comes serenity. If you know which items you want to go to which people, there are several techniques you can use to minimize the chance of disputes. One technique is to give items away during your lifetime. But most people are not willing to go to such lengths to avoid disputes. Others stick pieces

of tape with people’s names on them on all the items in their house. Of course, then they have to worry about people switching the pieces of tape around after they die – which does happen. Alternatively, many people write a letter of wishes that details gifts of personal effects that they keep with their wills. Care must be taken with the wording used in these letters, however, to avoid ambiguity leading to disputes. And finally, gifts of personal effects can be written directly into a will, or into another document that is incorporated into the will. This is the most sure fire way to make your wishes clear to everyone, but amending this document often could be costly.

Distribution is often not that straightforward though. Sometimes a parent does not want to make decisions early. In this case, instead of deciding on specific gifts in advance, parents can simply set out a method of distribution of their personal effects in their will. There are many possibilities for the type of method.

One of the simplest forms is what I call the “hockey pool” method.

If there are three children, write the numbers one, two and three on pieces of paper and then put them in a hat. Each child picks one piece of paper. Whoever picks the number

one chooses whichever of the personal items that he or she wants first.

After that, number two picks, then three. The order is reversed for each consecutive round: three, two, one and so on until all the personal effects are distributed.

Another method is for the executor of the will to list all the personal effects, give the list to each child, and have each of them independently rank each item on the list in order of preference. The executor then compares the lists from all the children and gives each item to the child who ranked that item the highest.

Most of these methods aim to treat the recipients equally to attempt to minimize the chance of disputes.

But what if you don’t want to treat everyone the same?

UNEQUAL DISTRIBUTION ■An unequal distribution of personal items or money among family members cuts to the heart of relationships. This is emotionally harsh when the beneficiaries are all children of the deceased. In B.C. this can be very expensive as well, as spouses and children have the right to challenge the will in court. With some early planning, people can minimize the chance of prolonged and expensive disputes after their death.

Wilson Rasmussen LLP ŽŵŵŝƩĞĚ ƚŽ LJŽƵ͕ LJŽƵƌ ĨĂŵŝůLJ ĂŶĚ LJŽƵƌ ďƵƐŝŶĞƐƐ

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How long can you last working?

M If you are set on d istributing unevenly among your children, or towa rd s you r spou se, most professionals would advise you to take assets out of your estate and distribute them otherwise.

Remember, your will deals only with assets in your estate, and your family can easily contest your will.

There are other ways your family can challenge your estate plan, but none is as straightforward as challenging your will. Some of the ways to take assets out of your estate are: making assets joint with right of survivorship with someone else, designati ng someone as beneficiary, and transferring assets to someone else outright or by way of a trust during your lifetime. In all of these cases, because there could be brutal legal and tax implications if done incorrectly, everything must be properly documented and done with the help of a professional.

Providing guidance in advance on the distribution of your personal effects and seeking professional advice when considering unequal distribution are great ways to prevent disputes after you die. With a well-thought-out estate plan, you’ll leave a legacy instead of a calamity.

Mike Beishuizen is the founding lawyer of Westcoast Wills & Estates, a Vancouver law firm that focuses only on estate planning and probate.

He advises clients on estate planning and prepares wills, trusts, representation agreements and powers of attorney. He also advises and helps clients apply to court for probate and committeeship orders. See www.westcoastwills.com

ore than 60 per cent of baby boomers say they plan to work after retirement age, according to a 2016 study by MerriilEdge. However, only about 17 per cent of retirees ac tually have some form of job.

From a financial perspective, working into your 70s or 80s can be a great idea. It’s also completely unrealistic for many.

It’s not just blue-collar workers; even office workers need to prepare for the possibility that their careers will have a natural shelf life.

As reported by Bloomberg, Boston College’s Center for Retirement Research rated 954 occupations on the likelihood that required skills will decline with age. The researchers looked at data on when people actually retire. Controlling for other factors, they found that people in occupations that

ranked higher on the susceptibility index were indeed likelier to retire early. A white-collar worker ranking higher than 75 per cent of the group was 7.5 per cent more likely to call it quits before age 65 than a worker in the 25th percentile.

According to the index, the five careers that an aging worker could last the longest in are: sociologist, lawyer, chief executive, financial advisers and investment fund manager. The five with the least chance for an aging worker to stick with it are: photographer, airline pilot, fitness instructor, plumber and roofer.

LEAVE EAVE A LEGACY EGACY

OFF HOPE

We grant wishes because wishes change lives.

Moss, Age 5, Wilms Tumor

I wish to go skiing on a big mountain with a real chair lift!

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Getting ready

AGING AND DEMENTIA MARY-JANE WILSON |

Planning for retirement includes planning for incapacity

A You may not want to think about a time when you are unable to make certain decisions for yourself, but it is prudent to plan for it, just in case

s we age, our ability to care for our finances and ourselves may diminish, and it is prudent to plan ahead for this possibility. Every one knows that we should make a will to assist our loved ones to manage our financial affairs, but it is equally important to plan for our possible incapacity prior to death by appointing a substitute decision-maker while we are incapacitated, but still alive.

Planning for incapacity is often overlooked.

In British Columbia, we have several legal tools to assist us, if we were to become incapable: power of attorney, enduring power of attorney, representation agreement, advanced directive and adult guardianship, and committeeship.

A power of attorney is a legal document that appoints another person called an “attorney� to make financial and legal decisions on your behalf. A power of attorney can be very specific or very broad and it ends if you become mentally incapable. You could, for example, appoint someone to sign documents in order to sell your house at a specific time.

An enduring power of attorney is a legal document that appoints another person to make financial and legal decisions for you and it will continue even if you become

mentally incapable of making decisions. The document must state that it survives mental infirmity in order for it to be “enduring.� It is a financial document and does not deal with health care. If you do not appoint an attorney to manage your financial affairs, no one can automatically act for you, not even your spouse. It is important that you choose someone you trust.

Representation agreements allow you to choose someone you trust to be your representative if you become incapable of making decisions on your own. A representative may be given decision-making authority for your personal care and health care and in some cases the routine management of your financial affairs. They can decide where and with whom you reside. They can make major or minor health-care decisions. In general, however, representation agreements are usually used for health care and powers of attorney are used for finances. The person you appoint can be a family member or a friend, and you can appoint more than one person.

An advanced directive is a capable adult’s written instruction about what health care you do or do not want in the future in the event that you become incapable and a healthcare decision needs to be made. It

can be very specific and it is a legally binding document.

Note that the term “living will� is often used but it is a U.S. term.

The term living well is not referred to in B.C.’s health care consent legislation.

I f you become i ncapable a nd have not planned ahead, the Supreme Court of British Columbia may appoint someone to make decisions on your behalf. The court appointed guardian of the adult is called a “committee.� In order to be appointed a “committee� of an incapable person, two doctors need to state that the adult is incapable of managing himself and/or his affairs, and the Public Guardian and Trustee needs to be notified. A court application is then made. This is an expensive and lengthy process.

In summary, you may not want to think about a time when you are unable to make certain decisions for yourself, but it is prudent to plan for it, just in case.

Mary-Jane Wilson is a partner of Wilson Rasmussen LLP, a Surrey, B.C. law firm.

She is the author of the British Columbia Probate Kit. Visit wilsonrasmussen.com

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Getting ready

PENSION PRESSURE Changes to the Canada Pension Plan are coming and may affect your retirement decisions

DAVID LEE |

A By 2019 the annual payout target will increase to 33 per cent of pre-retirement earnings and the new maximum annual pension at age 65 will be $17,478

0_Retirement Ready 2017_02.indd 13

n important factor to consider in retirement planning is to be informed about Canada Pension Plan (CPP) rules and any amendments to them. There have been a number of changes to CPP over the last few years, as fewer Canadians today have definedbenefit pension plans through their employer than in the past. The most recent changes will take effect in 2019 and are designed to better facilitate retirement for individuals.

Currently, CPP pays a pension based on contributions made on income earned up to but not exceeding $54,900. This means that beyond this level, higher-income earners do not receive a CPP benefit. However, coming changes will increase this maximum income level to about $82,700 by 2025.

To fund CPP, workers and employers in Canada each currently pay 4.95 per cent of the employee’s earned income into the plan.

Currently, when one retires at the age of 65, CPP pays a maximum annual pension of $13,110. With the upcoming changes to CPP, starting in 2019, contributions will increase by one per cent for employees and employers (and two per cent for the self-employed). Additionally, the annual payout target will increase from about 25 per cent of pre-retirement earnings to 33 per cent of pre-retirement earnings, and the new maximum annual pension at age 65 will be $17,478. These changes will mostly benefit those who are at least 10 years away from retirement, as well as those who do not have a defined-benefit pension plan through their employer. Ultimately the changes will provide greater income security for future retirees.

Employee contributions to the enhanced portion of CPP will now

also be eligible for a full tax deduction over the tax credit received now. This will benefit those who have a higher marginal tax rate because while they will be contributing more, they will also receive a full tax deduction, which reduces their income dollar for dollar. Employers and small-business owners will be affected by these changes because they will have higher contribution costs.

R E T I R E M E N T AG E M ATTERS ■Wait until age 65 or later

to retire, if you can. With the CPP, you can choose to receive monthly payments as early as age 60; however, doing so comes at a cost.

There’s a reduction in the amount you’ll receive each month if you start collecting before the standard retirement age of 65. If you are able to wait, you will have more funds at the end. By continuing to work, these earnings will help maximize CPP and increase your overall pension income.

Currently, there will be a 7.2 per cent reduction for each year you retire and take CPP before the age of 65. So if you choose to start your benefits at age 60, your monthly CPP payments will be 36 per cent less than if you wait until 65. This will allow you to enhance your overall income in early years to finance your lifestyle.

Delaying CPP past age 65 has the opposite effect, providing a boost of 8.4 per cent annually (0.7 per cent monthly) for every year delayed through to age 70. This means if you wait until age 70 to start collecting, your monthly benefit will jump 42 per cent. A higher level of income can be appealing; however, one needs to watch one isn’t negatively impacting income-tested benefits like old age security, which

starts getting clawed back with an income of $73,756.

Look at the whole picture. When it comes to choosing the date of your retirement, make sure to factor in your health and lifestyle. For example, if you’re in good health and long lives are common in your family tree, your decision to take CPP later might be much different than for someone who’s living with health issues.

Lastly, think about your saving and spending habits. If you are a conservative spender with strong budgeting skills, it may make sense for you to retire early as it is more likely that you can make your savings last. On the other hand, if you are not a strong saver or very financially savvy, you may want to wait until 65 or later to retire, so you can maximize the funds you receive from CPP and help ensure the longevity of your savings. People are now living longer, and it’s important to plan for retirement income that will last through your golden years.

David Lee is a financial adviser at BlueShore Financial and has more than 15 years’ experience in financial services. He is a certified financial planner (CFP), a recognized financial management adviser (FMA) and holds the elder planning counselor (EPC) designation.

To learn more, visit www. blueshorefinancial.com

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Getting ready

GREY DIVORCE LORNE MACLEAN, QC |

R The high-earning spouse cannot simply retire early and expect that spousal support will be reduced or cancelled

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Tips to keep your golden years golden after a grey divorce

ecent studies show people aged 50 and over are twice as likely to go through a divorce as in 1990, and divorce rates for those over age 65 are also on the rise. These are referred to as “grey divorces”, and they often come with a unique set of issues that can have devastating consequences on both parties’ financial stability into retirement years.

Grey divorces come with specific challenges. Couples planning early retirement may find that the increased costs of maintaining two one-person households after divorce prevents this. One or both spouses may be forced to work past 65 to maintain a certain lifestyle.

Longer lifespans mean longer financial support because the duration of spousal support can last a lifetime in lengthier marriages. Women tend to live longer, thus leaving women to face greater economic risk on their own.

While divorce is easy to obtain, dividing the family property, assets and debt and dealing with spousal support agreements are often bitterly divisive issues.

Family property is everything spouses own together or separately on the date of separation. This includes the family home, registered retirement savings plans (RRSPs), investments, bank accounts, insurance policies, pensions and any interest in a business.

British Columbia’s family property laws state that property jointly acquired during a marriage will likely be shared equally, except for inheritances, gifts and some injury settlements. Property that one spouse owned before marriage is excluded, and not included in family property. However, if the property increases in value while the couple lives together, the increase is considered family property, and this must be divided.

Couples who plan ahead can secure their individual financial futures by being aware of the family law rules in B.C., as well as understanding the financial and tax implications of decisions made prior to and during a grey divorce.

Do not put excluded property in joint names or you may well be gifting your spouse half of this asset.

Obtain proper legal and financial advice. Often couples will put property in a joint name or even in their spouse’s name for tax reasons, but this can have major repercussions in divorce.

Not all of the family property is created equal because of income tax consequences. For example, a million-dollar house is often equal (after taxes) to a business worth nearly double that. Know your assets and where they fall on the Canada Revenue Agency taxation list.

The best asset is the family home as it is completely tax-free when sold.

Stocks and rental properties are subject to capital gains tax of 25 per cent.

Cashing out RRSPs triggers normal income taxes, while selling a family business can mean both corporate disposition costs and income taxes.

Pension plans are often a family’s biggest asset. Whenever a pension is involved, you should seek the advice of a family lawyer, tax lawyer or financial planner with pension experience.

Spousal support is the most contentious issue in grey divorces. B.C. uses Canada’s Spousal Support Advisory Guidelines to determine how much and how long spousal support is paid. In long marriages where one spouse was at home while the other advanced his or her career, the high-earning spouse cannot simply retire early and expect that spousal support will be reduced or cancelled on that basis. However, the courts encourage self-sufficiency incentives to the non-working

spouse. Contrary to popular belief, remarriage and re-partnering of the recipient spouse does not automatically end the paying spouse’s obligation.

MOVING ON ■Be proactive before you enter into a new commitment.

A detailed plan at the start of a relationship makes dividing family property and agreeing to spousal support easier on everyone if the relationship breaks down, especially with the rise in predatory marriages and concerns over a spouse’s mental capacity as they age.

List and value all excluded assets with source documents to satisfy the strict full-disclosure requirements of the B.C. family property act.

Second marriages often involve children from prior relationships that require protection when estate planning – they need to be considered as well.

It’s critical that both spouses obtain the services of family lawyers and financial planners, before and at the end of their relationship, to ensure their financial stability.

Couples must create a framework for financial success as they move on with life and into new relationships. A grey divorce does not have to tarnish your golden years if you have a solid plan to move forward with your life.

Lorne MacLean, QC, is the founding partner of MacLean Law. He practices family law in high-net-worth and complex disputes.

MacLean has served as a guest lecturer at the University of British Columbia law school and with the Canadian Bar Association, B.C. chapter. He presents to various organizations about grey divorce and wealth preservation. www.macleanlaw.ca

2017-01-18 10:28 AM

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Our goal is to bring clarity to complex situations. Together, we will build a customized financial plan that will enable you to live your dreams with peace of mind.

cindydavid.ca t 604.659.8020

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Financ ial G r o u p L t d .

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Business of retiring

‘I

SOLD THE BUSINESS’ The Business Transitions Forum in Vancouver last November included presentations from three Vancouver-area business owners who successfully transitioned to retirement, or semi-retirement

John Zaplatynsky, far right, discusses business sale strategies at the Vancouver Business Transitions Forum with forum chair Rod Senft, far left, and entrepreneur Harry Watson, centre, founder and president of Canadian Construction Materials Engineering and Testing Inc. | DAVID TYLDESLEY

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FRANK O’BRIEN, WITH CUBE BUSINESS MEDIA INC.

JOHN ZAPLATYNSKY, FORMER OWNER, GARDENWORKS

John Zaplatynsky knew it was time to sell his ownership in GardenWorks, the business he’d co-founded in 1984.

Like many boomers, he wanted more opportunities with family and for travel and reconnecting with friends.

But he also wanted to avoid the dreaded seller’s Monday-after syndrome. “It would have been very difficult to wake up Monday morning and say, ‘Oh my God, what do I do now?’” Zaplatynsky says.

Zaplatynsky didn’t just walk out. Instead, he followed a carefully thought-out two-year plan. He sold 53 per cent of his interest in GardenWorks, became company chairman and stayed involved in the wider industry, while gaining the personal time he’d sought.

Zaplatynsky’s experience should hearten business owners thinking of selling – but worried about how to go about it. And with statistics showing up to 75 per cent of businesses fail to be sold successfully, owners have good reason to be cautious, says Dave Tyldesley, vice-president of the forum’s producer, Cube Business Media Inc. Zaplatynsky’s advice? Decide on your date of departure – or semi-departure, as the case may be – two years ahead. “That gives you a pretty reasonable timetable. I basically sat down and documented all of the things that I did and all of the issues we needed to worry about in terms of the company going forward. And then my four partners and I met, talking about the progress and the hand-off responsibilities.”

Zaplatynsky timed his ownership exit for August, the end of GardenWorks’ fiscal year and also the slowest business time of year. With his family he then went on an African safari.

BRIAN HURL, FORMER OWNER OF FOLEY’S CANDIES

Brian Hurl loved being an entrepreneur, and why wouldn’t he?

The Vancouver-based businessman essentially bought a chocolate factory in 2006. But the owner of Foley’s Candies, which sells bulk chocolate to retail grocery stores, bakeries and other food businesses, was faced with a life-altering choice two years ago.

“A health scare gave me cause to reflect,” says Hurl, 62.

“As much as I like the people I get to work with, the business that I’m in and the customers, there are a lot of things I want to do besides coming to the office at 7 in the morning.”

So in a very short span, Hurl sold his business in June 2016. And despite his affection for the confection business, he couldn’t be happier with his decision.

“For the next few months, I’m going to figure out what it is that I want to do,” he says, adding he plans to travel, ski and volunteer.

A banker for 25 years prior to becoming a chocolate mogul, Hurl was fortunate he had previous experience in business transactions. That also meant he knew enough to know he needed help. He enlisted a team of experts, including a boutique private bank to help attract the right buyers.

“They helped me put together an information package – a teaser – to garner interest from buyers and then we started narrowing them down,” he says.

Within months he had found the right buyer and sold Foley’s to Yellow Point Equity Partners.

OLIVIER VINCENT, FORMER CEO OF CANPAGES

The former CEO of Canpages, Olivier Vincent understands that selling a business is never simple.

In 2006, he created the successful phone-directory company. Four years later, Canpages had annual revenues of $104 million and was employing 600 people.

A year later, Vincent sold it for $225 million.

Although Vincent agrees the sale process can seem daunting at times, the rewards can be great and life changing.

The Parisian-born Vincent came to the table with a wealth of experience in the industry. Over the years, he has founded more than nine companies and startups. He grew Canpages into the second-biggest player in Canada by ramping up Canpages’ online presence, its media and advertising sales and e-commerce capability.

“Although we focused on the online presence, we kept a print product but we made it a lot more affordable,” says Vincent.

Before you start evaluating the worth of your company, Vincent recommends that you have a really good chief financial officer.

“A CFO is your best friend. He/she will give you good numbers for what your revenue and profit numbers can be in the future with no emotion in them,” he says.

“Then, make your business desirable, build interest. I did a few interviews to create buzz for Canpages, which generated interest from a number of media companies.”

Vincent cautions against sellers getting too greedy.

“Greed isn’t bad, but being too greedy might result in the loss of a fair sale price,” Vincent adds.

So how does one know when the time is right to sell?

“We felt the business had reached a temporary level of maturity, ” Vincent explains. “And the offer from a strategic competitor was very appealing.” É

David Hurl: sold Foley’s Chocolates with the help of expert advice | DAVID TYLDESLEY

Olivier Vincent sold Canpages for $225 million to a strategic competitor | DAVID TYLDESLEY

The Business Transitions Forum returns to Vancouver this fall.

For information, visit businesstransitionsforum.com

Succession planning isn’t just about what you’re leaving behind — it’s about what lies ahead.

exit smart

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Business of retiring

EXIT, WITH MONEY How to maximize the proceeds from the sale of your business: a first tip is not to get too emotionally involved

ARTHUR KLEIN |

S In most scenarios, a share sale is a smoother transition for the buyer as well as the seller

o, you’ve decided to sell your business and your accountant tells you to sell shares. You chat with your buddy and he says you should sell assets.

Then you meet with a business broker who refers you to market research studies that consistently report the common perils of business sales: many businesses lack timely accounting records, owners have unreasonable price expectations, onerous terms and conditions, or are simply too emotionally tied to the business.

There’s a lot to consider, but who is right and who is wrong? What should you focus on in order to maximize your sale proceeds?

As the answer is not a simple one.

Here are the core things to consider when strategically planning to maximize sale proceeds.

TAX STRATEGY

■If eligible, the

vendor can take advantage of the capital gains one-time $824,000 (2016 threshold) exemption when selling shares, which has three critical measures per Canada Revenue Agency (CRA) rules: ■The qualifying small-business corporation shares have a minimum holding period of 24 months.

■Throughout the holding period, 50 per cent of the fair value of its assets were used in an active business carried on primarily in Canada.

■At time of disposition, the company must be a Canadian-controlled private corporation with 90 per cent of the fair value of its assets used in an active business.

This means that while business owners can plan to maximize capital gains exemptions in advance by allocation of shares to other family members, they must be prudent of their asset management during the holding period. One common example is where a company will hold non-operational assets in the form of securities, but choose to pay down liabilities, such as accounts payable, loans, mortgages, etc.

POTENTIAL LIABILITIES

■

T h roug h the rev iew of you r accounting and material agreements, you will seek not only to quantify each of them, but to define the necessary mechanisms to manage the following: ■With material contracts, and where a change of control of the entity applies, the vendor may have to support transference or

negotiation of change of control of the corporation clauses – allowing the purchaser to assume such contracts without the need to renegotiate, re-qualify or reapply for credit.

■Severance pay can also become a liability, should the firing and rehiring of staff by a different entity running the same business be deemed continuous employment.

There are mechanisms to deal with this.

■If other than obligations to CRA, all potential liabilities can be managed through legal instruments.

Vendors w i l l need to be awa re that as at closing, the shares and all assets shall be free and clear of all liens, claims, charges and encumbrances.

In most scenarios, a share sale is a smoother transition for the buyer as well as the seller. But what about the receivables and payables, you ask? Well, more often than not, they can be better handled through a share sale than an asset sale.

BUSINESS VALUATION ■A key process you will want to undertake is that of a business valuation.

Typically, this involves a systematic process by which a reasonable and critical assessment of an

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opinion of value will be derived, as justified by various methodologies, including the consideration of: ■nor m a l i z e d e a r n i n g s of t he business, ■what the company owns, ■present value of future earnings, and ■what the discretionary cash flow can support.

Other important factors considered by the assessor should also include the ability of the business to: ■support the required level of management, ■service debt and level thereof, ■provide a reasonable return on invested capital, and ■r a t i o n a l l y p r e d i c t g r o w t h potential.

Ideally, business valuations will be prepared by an independent and qualified assessor and not the company’s accountant, and at least one to two years ahead of the planned

sale to allow the business to effect necessary changes to enhance value and be organized to secure optimal terms of sale.

BUSINESS VALUE DRIVERS

■

Both the expected price and terms of the owner can be detrimental to a business sale. In conjunction with a valuation, the company needs to compare itself with expected business norms, or primary value drivers, such as historical profits, income risk, location and terms of the sale.

O w ners shou ld s t r ive to enhance operating margins, reduce client concentration, and balance financeable earnings and assets while maintaining growth. At a personal level, owners should work to divest themselves from the business through delegation of duties or restructuring by putting effective management in place. This will also help with the emotional and

psychological struggle that business owners often face when it comes time to sell.

A business sale is a complex issue, and one that needs to be assessed on a n i nd iv idua l basis as each situation is unique. While in some cases such detailed assessments may not make much difference, under specific scenarios the lack of them could be a deal-breaker.

Before you follow the word on the street about what you should do, speak to a qualified, knowledgeable, professional merger and acquisition adviser or business broker.

Arthur Klein is a merger and acquisitions adviser with Vancouver-based Pacific M&A and Business Brokers Ltd. He can be reached at 778329-9558, or through www.pmabb.com

Help us keep our community strong in the future too.

Consider a gift in your will to United Way of the Lower Mainland.

When we work together, amazing things are possible.

To learn more, please contact: Michelle Bernard Manager of Philanthropy 604.268.1300 ext. 2442 michelleb@uwlm.ca or visit uwlm.ca/planned-giving Charitable Registration No. BN108160185 RR 0001

Leave a gift in your will today for a better community tomorrow.

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Business of retiring

REBOOTING

Boomers and near-retirees find new life in a new businesses

BAILA LAZARUS

T Leadership coach Miriam Linderman: “I tried twisting myself into a pretzel but since I didn’t bend that way, I began not to love who I was” | SUBMITTED

Kate Nagel, owner, Bird on a Wire gift shop in Vancouver: “don’t be limited by your age or what society says we can or can’t do at a certain age” | SUBMITTED

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wo years ago, Karen Blunderfield and husband Chris Van Nus decided they needed a mid-life change. Blunderfield had been running a family enterprise – Arlene’s furniture stores – with her brother up until she turned 50. Van Nus had experience in the restaurant industry as a server and sommelier at high-end restaurants, and had trained as a barbecue pit boss. At 51, he wanted to manage his own business.

“We weren’t going to eat bonbons and have our feet up at 50,” Blunderfield explains, “but we didn’t want a high-pressure, intense lifestyle.”

Blunderfield and Van Nus decided to start their own eatery. Now the pair live in Gibsons and run the Smoke on the Water BBQ Shack on Government Warf.

“It was scary at first, but the triumph is the sense of independence and empowerment it gives you,” says Blunderfield. “It’s a sense of personal pride and achievement.”

Their story is one of thousands playing out across Canada as those on the higher side of 50 begin to look toward retirement.

According to a Government of Canada key small-business survey, in 2014, 47.5 per cent of small businesses were owned by those in the 50-to-64 age group.

The need to start a small business after 50 also reflects a grim statistic: among those aged 55 to 64 with no accrued employer pension benefits, 32 per cent have less than $1,000 in retirement savings, according to a 2016 study by the Broadbent Institute.

After being laid off as an executive assistant in 2009,

single parent Kate Nagel, now 56, was inspired to open a gift store within the arts community.

When she heard about a federal funding grant to build a business plan, she applied and was accepted into the Langara Self-Employment Program.

She opened Bird on a Wire gift shop in October 2010 with 42 artists and now works with more than 200. In 2016, her shop was voted the best gift store in Vancouver by the Georgia Straight.

Nagel says she was “vibrating in fear” sometimes, but committing to her dreams is what kept her focused.

“Don’t be limited by your age or what society says we can or can’t do at a certain age. Use all the resources at your disposal,” she says, pointing to Small Business BC as a resource centre for those wanting to make the leap.

“Believe with fierce determination what your dream is.”

An experience meeting locals in China in 2006 triggered a business idea for educational software engineers Paul Melhus, 62, and colleague Dave Vincent, 56.

The two were on the Great Wall when a local woman started giving them an impromptu tour. It was an

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Getting ready to take the leap ■Identify skills you are lacking and get proper training or hire those with the right skills.

■Hire a business coach that fits with you.

■Don’t compare yourself and your progress to other people.

■Get in for the long haul; don’t underestimate the learning curve.

■Don’t make the leap if you need security as part of your lifestyle.

■Be strategic, see the big picture and ask for help.

Karen Blunderfield and husband Chris Van Nus, in front of their Smoke on the Water BBQ Shack

awkward situation at the time but gave Melhus and Vincent the idea of having local residents interact with travellers on a more professional basis.

The two left their “day jobs” in 2008 to start Tours by Locals. In 2016 they delivered 42,000 tours. They work with 1,889 guides in 153 countries.

Melhus says that age was actually a benefit in his case.

“Being older, you have the self-confidence about what works for you. Trust your gut and just go for it. Don’t let age stop you.”

In many cases the impetus to work for oneself comes from a personal need for growth. Miriam Linderman had become disillusioned working for 30 years in leadership training and organizational development in corporations.

“I tried twisting myself into a pretzel but since I didn’t bend that way, I began not to love who I was,” she says.

At 57, she took some courses through the Coaches Training Institute. Two years later, she left full-time work to start her own coaching business.

“I was terrified. I didn’t have a clue as to how I’m going to do it. And I was used to a paycheque,” she says.

She now helps clients who want to climb a little higher in their organizations, or those who are retiring and don’t know what they want to do.

Her learned lessons: “Be clear about the competencies you’re lacking so you know the skills you will need and get trained in that. Get a good business coach with a good track record.” É

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in Gibsons: “we weren’t going to eat bonbons and have our feet up at 50, but we didn’t want a high-pressure, intense lifestyle” | SUBMITTED Paul Melhus, co-owner, Tours

by Locals, with Jim Dickson, Tours by Locals guide from Belfast, Ireland: “trust your gut and just go for it. Don’t let age stop you” | SUBMITTED

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

F*** retirement

RETIREMENT?

NO THANKS!

For these four B.C. seniors – and at least 17% of other Canadians over age 65 – work is just too interesting and rewarding to consider retirement

MIKE HARCOURT PAT JOHNSON

Mike Harcourt: At 74, the former B.C. premier is launching a new medical marijuana company and a series of other startups and volunteering in his spare time. “Retiring totally I just don’t see happening” | ROB KRUYT

0_Retirement Ready 2017_02.indd 22

Mike Harcourt claims he never really had anything to retire from. “ I d id n’t h ave a c a re er,” he say s. “ I ju s t h ad happenstance.”

He was a young lawyer when residents of Chinatown engaged him to fight a planned freeway that would have obliterated their neighbourhood. That got him mad at city hall and he ran for council.

“To my surprise, and my new wife’s horror, I won,” he says. The mayor’s office followed, then a seat in the legislature, then the leadership of the BC NDP, the premiership and then, after 1996, two decades and counting of something that doesn’t look anything like retirement.

At age 74, he’s chair of True Leaf Medicine, which is aiming to become one of the country’s licensed producers of medical marijuana. He is also involved in other startups, including one that is coming to market with a device that identifies how much cancer is in a cell.

“I’ve been involved in about 12 startup companies in the last decade with the usual crash-and-burn rate,” Harcourt says. “But I’ve got three or four that I think are going to do pretty well.”

When he quit politics he didn’t sit at home and wonder what to do next.

Then-prime minister Jean Chretien offered him a Senate seat. “I said, Jean, I’m a triple-A guy – abolish, abolish, abolish – so it would be a little hypocritical of me to take a seat in the Senate.”

When the president of University of British Columbia

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invited him to work on sustainability issues, Harcourt bit. He spent a few years there, as well as serving on the National Round Table for the Environment and the Economy, the BC Treaty Commission, and the boards of the Vancouver Airport Authority, the Vancouver Port Authority and other boards and commissions.

Harcourt currently chairs the Age-Well Network, which exists to improve the quality of life for aging. He also chairs QUEST – Quality Urban Energy Systems of Tomorrow – which brings businesses, governments, utilities and others together to make Canada a world leader in smart energy.

He’s worked with the Nisga’a Commercial Group of Companies and the Musqueam Capital Corp., both of which advance financial independence for their respective First Nations.

In his spare time, Harcourt does a lot of volunteering, particularly around homelessness and First Nations issues.

Harcourt estimates he works about 35 to 40 hours a week, compared with the 80 to 90 when he was mayor and premier. And while he says he sees no point in giving it up, a rough 2016 did slow him down somewhat. He had open-heart surgery, to repair a ballooning aorta, followed by lower-back surgery to address a cracking disc.

At his wife’s urging, he does plan to reduce his schedule a bit.

“That’s where I’m trying to get to, but retiring totally I just don’t see happening,” he says. “Why? There are too many interesting issues and projects to deal with.”

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Age 96, Constance Isherwood

CONSTANCE ISHERWOOD

is the oldest practising

AMY SMART

lawyer in British Columbia.

While many people in their 90s have been retired for at least a couple of decades, Constance Isherwood sticks to her routine: arriving at the office every afternoon to see an average of 20 clients per week.

At 96, Isherwood is the oldest practising lawyer in British Columbia. She’s grown accustomed to the common question: aren’t you interested in retiring?

“I get this question frequently from clients and also from friends and neighbours. There’s always that curiosity,” she says. “The more I think about it, the more I think it’s rather a good idea. I must do it one of these times. Maybe next year.”

The petite woman, warm and composed, speaks from behind her desk in the 1887 heritage house on Victoria’s Fort Street, where she works in general civil law.

Isherwood, called to the bar 65 years ago, didn’t have a passion for law when she started – she played piano and drums, and would have liked to have been in an orchestra. But she worked for a lawyer who encouraged her to enrol at the University of British Columbia’s law school.

She did, and launched what would be a series of trailblazing landmarks for B.C. women in the legal profession.

When she entered law school in 1948, Isherwood was one of only eight women in a class of 208. By the time Isherwood graduated at the top of the class in 1951, she had become the first woman to win the Law Society of British Columbia’s gold medal.

Last October, she became the first woman to win the law society’s highest honour for lifetime achievement.

She sees at least 20 clients a week in her Victoria office.

Retirement? “I must do it one of these times. Maybe next year” | ADRIAN LAM, TIMES COLONIST

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

F*** retirement

91-year-old Kingswood Capital president Joe Segal has never thought of retiring because, ”he has never had a job in his life” | ROB KRUYT

Isherwood, née Holmes, says she has never felt excluded or had to work harder to prove herself. In school, men copied her homework and gave her the nickname “Sherlock Holmes” for her meticulous research. “There was just a feeling of camaraderie,” she recalls.

After graduating, she was welcomed back to Victoria with a job by her mentor, Ernest Tait, and formed Tait & Holmes. In 1963, she opened Holmes & Isherwood with her husband, Foster Isherwood.

“The reason that I am still working is that I like the work and I also like the interaction with people; it’s almost the social aspect of it. It’s the work with clients and different people that you enjoy,” she says.

Isherwood believes work is also part of what has kept her healthy.

“I think for people who like to work and keep working, as long as they are happy with it and able to do it, it’s a benefit, both to them and to the people they help.”

JOE SEGAL

JOE SEGAL You’re either part of life or you’re retired. You’re either in or you’re out. If you’re retired, you’re out

0_Retirement Ready 2017_02.indd 24

the company in a sale to Hudson’s Bay Co. in 1979.

Since then he has been dabbling in myriad investments – from real estate to baby cribs to space imagery.

His current role at Kingswood is what he calls being a “bird dog.” Segal is the one who finds potential investments and analyzes pitches that people send him.

Every night he takes a pile of papers home to his westside home and sorts through them. He also reads seven newspapers a day.

For health reasons, he often spends an hour in his home pool in the morning doing resistance exercises.

Segal could reduce his workload but he thrives on activity.

Seven ye a rs a go he h ad a s t roke a nd wa s lef t incapacitated.

“I couldn’t talk and I couldn’t walk,” Segal says. “It was frustrating, absolutely frustrating to have this feeling of uselessness with no productivity. It’s better to be dead than alive if you can’t contribute.”

His work ethic does not mean that he for`goes vacations. Segal and wife Rosalie have gone on cruises and on trips to the sunshine, but he is a reluctant tourist.

“I don’t vacation unless I want to go somewhere,” he says. “I don’t plan vacations. If I decide that I want to go somewhere, I go. But I like it at home.”

Spending time at work means that he gets to see a lot of sons Lorne and Gary. Lorne heads the company’s real estate division while Gary runs some subsidiary companies. But the work is also personally rewarding, he says.

“What else am I supposed to do? Wither and die because I’m 91? My life is exciting. Every day is a different day. Every day I see something new. I don’t mean material things, just life. You’re either part of life or you’re retired. You’re either in or you’re out. If you’re retired, you’re out.”

GLEN KORSTROM

JIM BYRNES

Joe Segal is 91 years old and he still puts in more than 40 hours a week at Kingswood Capital Corp., which is the real estate and investment company that he founded in 1979.

He has never considered retiring. In fact, he says that the concept does not make sense for him.

“You’re speaking with an individual who has never had a job in his life,” Segal says while sitting in a comfortable chair behind a large desk in his office above Pacific Centre in downtown Vancouver.

“I’ve been independent all of my life. I was in the army overseas in World War II. I took orders because when you’re in the army you take orders or you wind up peeling potatoes. I vowed I would never have a job when I got out of the army. I would be independent. That’s what I’ve done.”

Business has been his passion since he returned from military duty in Europe and launched an army surplus store in 1946. He had little money to buy products to resell and excess military supplies were cheap.

He later founded and realized sufficient success at Fields to afford to buy the struggling Zellers chain in 1976. He doubled sales within three years and flipped

BAILA LAZARUS

If there’s a character on the horizon that Jim Byrnes has yet to play, it should be the Energizer rabbit. At 68, the singer-songwriter, film/television/stage actor, radio host, narrator and voiceover artist does not seem to slow down for a second.

At the time of writing, Byrnes had just come back from an extensive tour across the Northwest Territories and northern B.C. (he rattles off 13 cities he visited as though they were stores in a mall where he had just finished his Christmas shopping); he was just finishing up his run as Scrooge in Bah! Humbug! – the Downtown Eastside’s modern-day version of Dickens’ A Christmas Carol; he was prepping for a tour of Vancouver Island with his band the following week; and he was still organizing his Roundhouse Radio show that runs Saturday evenings.

The man has had four days off since September.

Known for starring in TV roles in Wiseguy and Highlander, Byrnes still picks up the odd acting role, does voice work for commercials and narrates TV programs for the Knowledge Network, but what takes up most of his time is music, and it’s clear that music is what feeds his soul and keeps his energy going.

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He still plays over 100 dates a year in North America and Europe.

“When on stage, I’m home. That’s me,” says the multiple Juno Award winner. “The energy and love from the audience nourishes and keeps me moving.”

In fact, the only thing that seems to slow the musician down is the travelling.

“I’ve gotten to a point where I really hate going to the airport because of my disability,” he says, referencing a 1972 accident in which he lost both his legs.

Surprisingly, despite the enormous success he’s had over the years, he still considers his career as “feast or famine.” There are times when his band’s gigs conflict with a movie role, and he has to pass on one or the other, including one recently where he was to play opposite Anthony Hopkins, but had to give it up because of a conflict with his band’s dates.

Aside from the music and acting, Byrnes enjoys family time travelling with his wife – last year they visited Amsterdam and Paris. Among the things still to do on his list he includes a new album he’ll be recording in March and a memoir to write “some day.”

And as far as retiring?

“You know, every year I have a meeting with my bank adviser to talk about finances and for the last three or four years he’s asked me when I’m going to retire. I guess when I fall over on stage and can’t get up.” É

Jim Byrnes: “the energy and love from the audience nourishes and keeps me moving” | SUBMITTED

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om e ghbours have becthe Our frie nds and nei to ens ure y nt wa we and y mil our fa hea lth care”. contin ue to have great “It will ben efit us all Pea ce Arch Ho spittoal.hel p ”

0_Retirement Ready 2017_02.indd 25

www.bhfoundation.ca

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Real estate & retirement

REVERSE MORTGAGES:

ARE THEY FOR YOU? Home equity and debt levels drive popularity of reverse mortgages for seniors

PETER MITHAM

O

ver the past 25 years, a seismic shift in how people think about retirement has occurred. A steady decline in interest rates to historically low levels combined with pressure on defined-benefit pension plans means many retirement strategies now hinge on the appreciation of real estate assets.

Yvonne Ziomecki, senior vicepresident, marketing and sales, HomEquity Bank: “ ... If someone can give you an advance on your [home] equity of $100,000 or $200,000, it can be life-changing” | SUBMITTED

0_Retirement Ready 2017_02.indd 26

Accepted as not just a place of shelter but a forced savings plan, the primary residence has become a key source of equity for many families. Cash-strapped families in all age groups often see the accumulated equity as a reserve against financial pressures, with approximately a third of Canadians extracting equity when the time comes to renew their mortgages.

Real estate marketer Rennie Marketing Systems estimates the volume of clear-title real estate in the Lower Mainland at $197 billion, with more than a third of that equity in the hands of people aged 55 years and older.

This gives many longtime homeowners – now seniors – a large reserve of equity, says Yvonne Ziomecki, senior vice-president, marketing and sales, with Toronto-based HomEquity Bank.

Rather than sell their homes to access the equity, many homeowners opt for a reverse mortgage in which they receive equity and charged interest for the duration of the term. Reverse mortgages allow seniors to access up

to 55 per cent of the value of their principal residence, providing a key way to tap into home equity for those who aren’t ready to downsize.

“People want to enjoy their retirement years in their homes, in the surroundings and the neighbourhoods they are comfortable with,” Ziomecki says. “For a lot of them, if you bought your house for $30,000 however many years ago and now it’s worth $1.3 million, and someone can give you an advance on your equity of $100,000 or $200,000, it can be life-changing.”

HomEquity offers the CHIP reverse mortgage as well as Income Advantage, a flexible product that allows intermittent withdrawals of equity from as little as $500 a month to $25,000 a month.

HomEquity, a Schedule 1 bank established to serve demand for reverse mortgages, said disbursements in 2016 will total approximately $500 billion, a 30 per cent increase from 2015. This is among the biggest year-overyear leaps the company has seen. Typically, its business

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grows about 20 per cent a year.

Tracing its origins to Canadian Home Income Plan Corp. (CHIP), a reverse-mortgage provider founded in 1987 in Vancouver, HomEquity now manages a national portfolio worth $2.2 billion. Approximately a third of its business is in B.C., thanks in part to good awareness of reverse mortgages as well as strong home values.

“The growing popularity has really been interesting,” Ziomecki says. “It supports the demographic trends you’re seeing with respect to seniors – more debt, less pensions, less savings.”

Statistics Canada reports that the debts of B.C. households aged 55 years and older increased 238 per cent between 1999 and 2012. Total assets rose just 162 per cent, driven by a tripling in the value of principal residences.

Ziomecki says the loans are typically taken for one of four reasons: to pay off debts, to cover unexpected expenses, or to maintain or augment a given style of life.

A reverse mortgage is attractive versus a registered retirement savings plan or a registered retirement income fund because the cash is tax-free, whereas additional income from the tax-sheltered funds would have tax owing.

A regular mortgage or private loans are alternatives but interest rates tend to be higher.

HomEquity’s current interest rate is 4.99 per cent,

0_Retirement Ready 2017_02.indd 27

competitive with many home equity lines of credit and – for those seeking to cover debts – attractive compared to the 19.99 per cent rate credit card companies charge.

Repayment of the mortgage doesn’t occur until the property ceases to become the mortgagee’s primary residence, through death, illness or the sale of the property. HomEquity allows 12 months for repayment when occupancy ends, and in the rare event a property’s sale doesn’t cover the advance, it forgives the shortfall.

Reporting on reverse mortgages, DBRS Ltd. notes that lenders such as HomEquity pay scant attention to the credit quality of the client since the repayment depends on the property mortgaged.

However, this doesn’t mean a reverse mortgage is entirely hassle-free.

Recipients, or their estates, are responsible for maintaining the property in good condition, and overseeing its sale. Any failure to maintain the property and otherwise protect the lender’s interest could be grounds for default.

Ziomecki says some reverse-mortgage holders have been clients for years, without issue.

“We have clients on the books from 1992,” she says.

“They got their reverse mortgage advance then, and they’re still living in the house.” É

Debts of B.C. households aged 55 years and older increased 238 per cent between 1999 and 2012.

Total assets rose just 162 per cent, driven by a tripling in the value of principal residences

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Real estate & retirement

NEW STYLES IN

SENIORS’ RESIDENCES Not your grandma’s retirement home anymore

BAILA LAZARUS

T Opal by Element will have features that are meant to bring about a club-like atmosphere | ELEMENT LIFESTYLE RETIREMENT

he landscape of retirement homes is shifting. From independent living to 24-hour care homes, the structures, amenities, programs and philosophies are undergoing transitions. Some transformations are the result of a reduction in public funding for seniors’ homes, leading to more families taking care of their own for longer; meaning those who do go into residences will be doing so only when they are in need of 24-hour care.

In other cases, changes reflect a desire to make senior living more reflective of home-like environments, and retirement facilities are reaching into their own pockets and looking to private funding for creative solutions.

Element Lifestyle Retirement is one example of a company focusing on duplicating home environments to attract family members who are in any stage from independent to assisted living who want to maintain the lifestyle they are used to.

Element was founded in 2012 by Don Ho along with three partners. In 2015 it officially launched as a developer and operator of retirement communities. Ho was the founding director, CEO and president of CPAC (Care) Holdings Ltd., which was sold to Chartwell in 2005. He is considered a pioneer of the “aging in place” philosophy.

0_Retirement Ready 2017_02.indd 28

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Resident Dorothy Braun wates dahlias in the Tabor Village therapeutic garden | TABOR VILLAGE

Element is currently developing two seniors’ residences in B.C. – Opal in Vancouver and Oasis in Langley – which have been established as leaders in intergenerational communities.

Comprising 142,000 square feet with 44 residential condominium units (available for sale to seniors), 56 rental units and 30 complex-care units, Opal will span an entire city block on the south side of King Edward between Yukon and Cambie. It is set to break ground in early 2017.

Ho’s daughter, Candy Ho, vice-president, marketing and corporate relations, for Element, says the new paradigm of seniors’ residences is meant to be adaptable for all needs and ages.

“If there’s one person in a couple that needs care, they’ll usually struggle at home,” she says. “The healthy person actually can be held back from living life fully because they want to care for their spouse. Our model allows both the healthy and ailing to live together and have their needs met.”

If parents want to live with their children or even grandchildren, that can be accommodated as well.

Normal age restrictions are 55 and over, says Ho, but that’s just for one occupant.

Ultimately, Element is trying to reproduce as closely as possible a luxurious, almost club-like atmosphere

0_Retirement Ready 2017_02.indd 29

where there are activities for all ages. For example, private dining areas will have a living space so children can play as though they were at home. Cooking lessons are available for making pizza or ice cream, so both the elderly and young can participate.

At Maison Senior Living in West Vancouver, a similar style of engagement occurs.

Erica Clarke, regional director of life enrichment at Maison, says programs are tailored to residents’ individual interests and family circumstances. Activities

Jo-Ann Tait, director, elder care, palliative services, Providence Health Care: “our future is in knowing how the residents would have lived their lives and being able to strike a balance between what the families want and how we would have normally provided that” | PROVIDENCE HEALTH CARE

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Real estate & retirement

Maison Senior Living has a family-centred model incorporated into programs from the first day of a resident’s arrival. Common spaces within the building are meant to reflect a home living environment | MAISON SENIOR LIVING

Candy Ho, vice-president, marketing and corporate relations, Element Lifestyle Retirement: “if parents want to live with their children or even grandchildren, that can be accommodated as well” | ELEMENT LIFESTYLE RETIREMENT

include art classes, TED talks, computer programs and vocational programs. Residents often continue with volunteer activities they had before moving in.

“Family-centred models are incorporated into programs from Day 1,” says Clarke. “There are play areas, arts and baking classes and concerts.”

Life-enrichment programs build relationships between

0_Retirement Ready 2017_02.indd 30

residents, residents and staff, and with residents’ families. Common spaces within the building are meant to reflect a home living environment.

While Opal and Maison focus on improving the experience within one large facility, Dan Levitt says new models of seniors’ living are coming out of Europe that are quite different.

Levitt is an adjunct professor of gerontology at Simon Fraser University, a board member of the International Association of Homes and Services for the Aging and executive director of Tabor Village in Abbotsford.

He travels extensively studying seniors’ communities and says one prototype has residents living in smaller homes within separate communities.

“The old traditional nursing home is being replaced by the small-homes model,” he says. Residents have their own suites with a sitting area and bathroom. The kitchen is common and shared.

“Typically people in a seniors’ home regress,” says Levitt. “The more you can engage them and have them be active, the more active they will be. Even engaging people with music seems to increase their communication abilities.”

Levitt points to Providence Health Care’s work as a good example of disrupting current residential systems that often look more at efficiencies than lifestyles.

Jo-Ann Tait, director, elder care, palliative services, Providence Health Care, explains what Levitt is referring to.

“As a residential-care sector, we’ve been using the medical model of institutionalization, using models of efficiency,” she says. “We have deteriorated their independence and personal autonomy over time. How do we move to something that’s more desirable, more autonomous?”

At St. Vincent’s Heather at Cambie and 33rd Avenue, Providence is looking at building Honoria Conway Assisted Living.

“We’re looking at the opportunity to build fresh; what would we do from the ground up?”

After a series of staff engagement and strategic planning sessions, Providence came up with a model similar to what Levitt had seen in Europe – a more social model of small households, each housing about 10 people.

They would have their own room and bath, but share common areas.

Groups of 32 of these houses would be their own community, with a secure perimeter within which would be a restaurant, theatre, daycare, pub and gardens, as an example.

“That’s what people are crying for,” Tait says. “They want the vibrancy of life to continue around them.”

The concept for Honoria Conway is set to be completed, with functional drawings, in spring 2017. There will be no funding from the Ministry of Health, so Providence is looking for capital investment.

“Our future is in knowing how the residents would have lived their lives and being able to strike a balance between what the families want and how we would have normally provided that,” says Tait. “We’re trying to tear up that unwritten rule book about not wanting to take risks.” É

2017-01-18 10:28 AM

by e l e m e n t

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With over 30,000 square feet of indoor and outdoor amenities, Opal will encompass the complete spectrum of lifestyles: • 44 condominiums: Independent Living and Assisted Living • 56 rentals: Independent Living and Assisted Living • 30 Memory Care and Licensed Complex (Long-Term) Care Located at King Edward and Cambie in the core of Vancouver’s premier neighbourhood, Opal is just steps to parks, a community centre, boutique cafes, gourmet restaurants and exclusive retail.

Discovery Centre Now Open 25% of Condominiums sold within 10 days of opening. Rental reservations begin Spring 2017.

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It’s your time. Your life. Live it well.

After all, retirement isn’t about age, or about not working. It’s simply a stage you’ve earned for yourself. So every moment, indulge in your passions. Laugh, play, teach…share your gifts with your friends, family and community.

At Opal, this is your home. That’s why you’ll experience warmth and intimacy, from our generous wellness offerings to our attentive, welcoming staff. Our events and activities will actively connect all generations– from grandparents to grandchildren to the local community. It’s where you get to live with passion and purpose.

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0_Retirement Ready 2017_02.indd 31

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

Real estate & retirement

RETIRING TO THE

OKANAGAN

Okanagan lifestyle provides options from urban flair to golf and waterfront retreats

PETER MITHAM

“

T

rade your commute for Cabernet” is among the latest marketing lines enticing people to try B.C. wine. But for many people eyeing a slower pace of life, it summarizes why the Okanagan makes the list.

Wine and food add spice to the Okanagan lifestyle, transforming the childhood vacation destination of many into a year-round community of outdoor activities and sophisticated culinary experiences.

The arid climate of the southern Okanagan has given communities such as Osoyoos, a lakefront desert town on the U.S. border, the Okanagan’s greatest concentration of seniors. Cycling and pedestrian trails along the Okanagan River and Osoyoos Lake offer stellar opportunities for birdwatchers and wildlife scouts of all stripes.

Retirees from Vancouver and Calgary also find real estate a deal.

With properties a fraction of the price of those in the city and Internet connections on par with anywhere in North America, relocating here becomes a matter of simple economics. Indeed, a rush of development a decade ago transformed the southern Okanagan into a hub of second homes, many anticipating the coming wave of retirees. The financial crisis of 2008 stalled the

0_Retirement Ready 2017_02.indd 32

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Okanagan housing prices 65+

22%

UNDER 65

78%

shift, but the trend has resumed with the recovery of real estate markets.

Projects such as Skaha Hills in Penticton are attracting retirees from across Western Canada. The homes offer single-level living ideal for seniors, often at half the price of properties in Vancouver. Similarly, other developments offer golf-oriented homes while still others in Kelowna offer proximity to urban amenities.

When health becomes a concern, South Okanagan General Hospital in Oliver serves the Okanagan south of Penticton, home to its own regional hospital. The largest facility in the region – and one of the largest in Western Canada – is Kelowna General Hospital, with 700 beds. It boasts the only cardiac unit performing heart surgeries in the B.C. Interior, and enjoys an affiliation with the University of British Columbia medical school.

The region’s key shopping hub is Kelowna. Kelowna International Airport, located just north of downtown, is a departure point for direct trips to Vancouver, Calgary and the U.S. In the north Okanagan, anchored by Vernon, seniors represent 23.6 per cent of the population. The region has seen the highest growth of retirees in the entire Okanagan since 2011.

Add in a solid economy and retiring in the Okanagan is as good as it gets for a retirement that’s a change of pace rather than a shuffling to the sidelines of life. É

OKANAGAN

163,000 senior population 734,000 total population

SOURCE: BRITISH COLUMBIA REAL ESTATE ASSOCIATION/OCTOBER 2016

The Rise golf course in Vernon, which has seen the highest growth in senior population in all of B.C.’s Okanagan in the past six years | THE RISE GOLF COURSE

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Real estate & retirement

RETIRING TO

VANCOUVER ISLAND

Vancouver Island offers close-knit communities and abundant places to explore

PETER MITHAM

V

ancouver Island has long been a destination of retirees from across Western Canada. With dreams of daffodils in February, and temperate coastal weather, those in the latter years of their professional lives often begin scouting properties in the rustic, laid-back communities that run up-island from Victoria.

The Wickaninnish Inn on the west coast is among the destination delights that attract many retirees to Vancouver Island | SUBMITTED

0_Retirement Ready 2017_02.indd 34

Cobble Hill, Chemainus and the Cowichan Valley, Nanaimo, Parksville and Courtenay-Comox are among the popular destinations. The communities are small and close-knit, often with quaint character homes or newly designed cottages. Many developments are also strategically located near ferry and float-plane terminals, reinforcing the sense of compact communities

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Vancouver Island housing prices 65+

22%

!" " ! !

UNDER 65

78%

!

connected to the major centres.

Refugees from the big city are a fact of life here, and with an established base of seniors, there’s a welcome waiting. Despite an above-average concentration of seniors on Vancouver Island, many communities bring together people of different ages.

Bear Mountain, a development outside Victoria, was launched a decade ago as a golf-oriented resort. It has since evolved into a community with a mix of ages and activity levels. While the town of Sidney has the biggest concentration of seniors on the Island at approximately 47 per cent, affordable housing and an ethic that isn’t all about work bring young and old together at Bear Mountain. Besides the golf community’s Jack Nicklaus-designed golf course, the surrounding area includes Goldstream Provincial Park with its wealth of trails and natural wonders.

It’s a similar story in the coastal communities of Qualicum Beach and Courtenay, home to Crown Isle Golf & Community Resort, where retirees can enjoy salt air and coastal splendour.

Key health-care facilities include Victoria General Hospital and Nanaimo Regional General Hospital and three new hospitals serving the north Island.

Meanwhile, Vancouver Island University in Nanaimo is home to Elder College, a volunteer initiative that focuses on lifelong learning. The program provides an opportunity for retired professors and keen seniors to remain engaged.

!

VANCOUVER ISLAND

172,000 senior population 768,000 total population

SOURCE: BRITISH COLUMBIA REAL ESTATE ASSOCIATION/OCTOBER 2016

Complementing the feasts for eye and ear is the fruit of local farms and wineries.

Victoria is the capital of local food culture, with Ucluelet and Tofino – home to the fabled Wickaninnish Inn – the outposts of fine dining. Those seeking less pretentious offerings, however, will find their fill in the Cowichan and Comox valleys, areas that have won fame as the Provence of Canada.

Slow food and pride of place are part of the Island ethos, as are the many family-run farms and cottage processors. While these supply restaurants across the Island with top-quality local produce, it’s also comfort food for retirees living in Island time. É

Campbell River

You belong here.

Vibrant community, excellent amenities, natural paradise.

Welcome home.

campbellriver.ca

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Real estate & retirement

RETIRING TO THE

CARIBBEAN ON THE CHEAP

According to a new report from the retire-overseas experts at InternationalLiving.com, there are sun-kissed islands that boast turquoise-blue waters and powder-white beaches, but where it doesn’t cost a fortune to retire, at least for the winter. Here are four to consider

Roatán is a 50-square-mile island retreat off the coast of Honduras | TOURISM ROATÁN

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FRANK O’BRIEN

Living is easy at Ambergris Caye in English-speaking

ROATÁN, HONDURAS

■Roatán, just 50 square miles,

is a green, hilly island off Honduras’ northern coast, fringed by a reef rich with sea life and garnished by white-sand beaches. The beaches here are quiet and pristine. No big-name resorts. No “spring break” strips. No highrise developments. Roatán is old-school Caribbean, though fitted out with modern conveniences.

English is widely spoken. That, along with an established expat community, makes it a relatively easy place to settle in. But relative to the rest of the Caribbean, Roatán offers excellent value with the monthly cost of living for a couple, including rent, estimated at from $2,000 to $2,500.

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Belize | BELIZE TOURISM INDUSTRY ASSOCIATION

■English-speaking Ambergris Caye is the largest island in Belize at 25 miles long and a little over a mile wide. San Pedro is its only town. About 30 years ago, Ambergris became a hot spot for divers and fishermen, thanks to the Belize Barrier Reef, just a half-mile offshore.

Expats give up little living on Ambergris Caye. Power, water, cellphone coverag and Internet are reliable, and you can buy most necessities for daily living on the island.

Expats who live on the island report a cost of living, including rent, of $2,000 to $3,000 a month and properties can be purchased from around $175,000.

AMBERGRIS CAYE, BELIZE

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Real estate & retirement

Las Terrenas in the Dominican Republic offers low-cost living in the Caribbean | DOMINICAN REPUBLIC MINISTRY OF TOURISM

Isla Mujeres is a short ferry ride but a world away from the bustle of Cancún, Mexico | MEXICO TOURISM BOARD

ISLA MUJERES, MEXICO ■Isla Mujeres is about eight miles offshore from Cancún in Mexico, but this laid-back island is a world away from the hustle and bustle of its more tourist-developed older sister.

A couple can live a very nice life on Isla Mujeres for around $2,500 a month, including rent. Rents range from $900 to $1,500 for apartments. Two-bedroom condos start in the $275,000 range and go way, way up. Groceries for a couple typically total around $600 a month.

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LAS TERRENAS, DOMINICAN REPUBLIC ■The Dominican Republic has great weather and world-class beaches, not to mention a low cost of living and a stable government.

This isn’t all-inclusive-resort territory, and thanks to strict planning laws, it should stay that way. The beach hotels here are small and family-run rather than giant resorts.

The beaches around Las Terrenas are some of the most pristine in the Dominican Republic. Everything included, a couple can live in this tropical haven for around $2,000 to $3,000 a month, including rent. Real estate in Las Terrenas remains affordable. Newer condos, close to shops and a 15-minute walk to the beach, start at $100,000. É

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SINK

OR

SWIM

A R E YO U R E A DY F O R R E T I R E M E N T ?

A N I N T E R A C T I V E L O O K AT R E T I R E M E N T B Y T H E N U M B E R S.

biv.com/navigating

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Healthy retirement

DIY

FITNESS

Keeping in great shape can be as simple as walking every day, using low-impact weights and keeping to a healthy diet

YVONNE ZACHARIAS & PATRICK BLENNERHASSETT

I

f you are seeking a buff mind and body that is even a bit on the sexy side in your senior years, the good news is you don’t have to blow the budget with fancy gym equipment, expensive spa treatments or exotic potions.

Teresa Liu-Ambrose, director of the aging, mobility and cognitive neuroscience lab at UBC : “The evidence would show that it’s never too late to start” | CHUNG CHOW

Dan Levitt, executive director of Tabor Village: staying mobile is the No. 1 thing to do | SUBMITTED

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In fact, a leading fitness instructor cautions that unlicensed instructors populate B.C.’s fitness industry, placing a greater emphasis on do-it-yourself exercise.

“What we find is there’s a lot of people out there who are not accredited or they don’t have any type of certifications or education,” says Curtis Christopherson, principal of Innovative Fitness White Rock, who holds a bachelor of kinesiology from Simon Fraser University (SFU) and has been working in the industry for 18 years.

“They might look the part and think they know what they’re doing, but they don’t.”

Unlicensed fitness instructors are holding boot camps in parks, hosting stationary cycle groups or running CrossFit gyms, but the industry has no government body to oversee accreditation or set out and enforce regulations, Christopherson says.

But you may not even need a gym or an instructor to keep in shape.

You just need to follow the sage advice handed down through the ages.

Stay mobile, eat lots of fruits and vegetables, don’t smoke, drink alcohol in moderation if at all, get regular checkups with your doctor and do what he or she tells you, experts say.

Staying mobile is the No. 1 thing you can do to maintain good health, says Dan Levitt, executive director of Tabor Village, a seniors’ home in Abbotsford, and an adjunct professor in gerontology at SFU. Walking works just fine as an exercise. He recommends half an hour a day five, days a week at a minimum. If you can tuck in some running or extra exercise

classes, so much the better.

Then there is diet. The good news from Levitt is there is no need to go on an austere no-carb, no-dairy, nomeat regime. Just eat lots of fruits and vegetables and yes, tuck into that odd bit of chocolate or ice cream.

None of us likes that regular trip to the doctor’s office but it’s a must. Get that heart, blood, blood pressure and colon checked.

Teresa Liu-Ambrose, director of the aging, mobility and cognitive neuroscience lab at the University of British Columbia and an associate professor, also emphasizes the importance of seniors staying physically active.

“The evidence would show that it’s never too late to start,” she says. “Even if you start later in life, you would still reap the benefits and it really isn’t a high dose to start.”

While walking is excellent exercise, she says some strength training can also be beneficial because we tend to lose muscle mass as we age.

Something as simple as moving from a sitting to a standing position five to 10 times in one bout can build strength.

Strength training where you work all the major muscles in both your upper and lower body twice a week is the ideal, with weights gradually added.

Her advice is to pick some physical activity you enjoy and be consistent with it.

As for improving the overall fitness industry, Christopherson recommends having fitness instructors added to extended health-care insurance programs,

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Gym for seniors

A

which should result in government oversight to ensure best practices. He says the issue is especially important for seniors, because an unlicensed and unregulated industry could lead to more injuries.

Holly-Anne Burrows, communications and member relations manager for the British Columbia Recreation and Parks Association, acknowledges the fitness industry is unregulated, noting there are about 5,000 “registered fitness leaders” across a wide range of job titles including group fitness, yoga fitness, weight training, personal training and older-adult training.

“This certainly leaves clients vulnerable to misleading claims, unsafe practices, and abuses of trust,” Burrows says. “However, it is not the Wild West, since there is a national practice standard registration in place that requires fitness leaders’ competency to be examined and maintained through continued education credits.” É

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Certified fitness instructor Curtis Christopherson says the industry is in need of better accreditation and oversight, especially when it comes to fitness training for older adults | CHUNG CHOW

new B.C. gym franchise is the first in Canada to specialize in supervised exercise and healthy- lifestyle coaching for people, mostly elderly, who have chronic health conditions such as diabetes, heart disease or obesity. The motto of Live Well Exercise Clinics is “Exercise is the best medicine.”

With 95 per cent of its members coming from doctor referrals, Live Well provides physician-prescribed exercise, according to founder Sara Hodson.

A typical Live Well member doesn’t know how to start an exercise program, she explains.

“They are intimidated by a typical gym and might be scared to over exert themselves, and so they just don’t exercise.”

Hodson says, adding that her concept is to make exercise welcoming.

Ted Myrah, a 63-yearold diabetic, came to Live Well in 2013 and today he no longer requires insulin or his blood pressure medications.

“I truly feel like I am the fittest and the healthiest I have ever been in my life,” Myrah says, “I’ve gone from being a sedentary accountant to a committed distance walker.”

Live Well has six locations in Metro Vancouver, according to Hodson.

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Healthy retirement

SENIOR

CLASS

Free tuition is not the only reason many seniors are heading back to college and university YVONNE ZACHARIAS

W

hen Harold Rubin decided to pack in his law career four and a half years ago at the age of 73, he had no intention of putting his feet up, relaxing and playing bridge like so many of his retired friends. Instead, he decided to hit the books, benefiting from free tuition for seniors 65 and over first at Capilano University on the North Shore and then at the University of British Columbia (UBC). continued on page 44 Ă„

Harold Rubin, 77, is pursuing degrees in history and political science at the University of British Columbia | CHUNG CHOW

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Healthy retirement

continued from page 42 Ä

MARK SMITH ACTING PROGRAM DIRECTOR, SIMON FRASER UNIVERSITY

The instructors love coming here because the [older] students really pay attention. They are not on their phones. They are not worried about finishing a course and getting a credit. They are there for the actual interest

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He was seized by a passion for studying that had seemed to elude him when he was a young man.

As a young man, he flunked a university-level English class three times. Yet with his return to the classroom as a septuagenarian, he found himself acing the very same type of literature classes.

Now, while pursuing a degree in history and political science at UBC, he can’t wait for some of his classes. Like one on modern Chinese history. The professor is so good, “the class comes alive better than a movie.”

His wife, three children, eight granddaughters and two great-grandchildren seem to understand his love of learning, but some of his friends can’t figure out why he doesn’t take it easy and play competitive bridge, which was once his pastime. That’s not nearly as exciting for him as wrapping his mind around Shakespeare and the arcane workings of the European Union.

Unlike his early days as a student, he doesn’t skip classes, takes neat notes and keeps them so organized, a school marm would beam with approval. He also enjoys writing exams because he finds they help to keep his memory sharp.

“I’m finally learning all the stuff I should have learned before I became a lawyer. I would have been a better lawyer maybe.”

He has no intention of abandoning his studies. Now, at 77, he is contemplating getting a master’s degree in international law.

It helps that he practised law for 49 years in a career that took him before the Supreme Court of Canada over 30 times. Today, writing a university paper or two doesn’t seem so daunting.

“I traded one obsession for another,” he says. “And most important, it’s free.”

The breaks offered to seniors by universities in the province are as varied as the diverse B.C. landscape.

The best deal appears to be at UBC, where seniors 65 and over don’t pay tuition or student fees for most degree programs, with professional programs like law, medicine, dentistry, nursing and pharmacy or any faculty or school where resources are limited forming the exception.

Twenty-five students over 65 are currently enrolled in credit courses.

Capilano University on the North Shore and Langara in Vancouver all waive tuition for students 65 and over but charge students fees like student union and term enrolment fees. Langara adds the stipulation that free tuition applies only to regular classes rather than continuing education classes, which are more hobby-oriented, and seniors can get into the regular classes tuition-free only if there are seats available after the regular registration period.

In all of the above cases, seniors are expected to pay for course materials, which can run around $100 to $150 per course.

The worst deal for seniors seems to be in Victoria, where neither Royal Roads University nor the University of Victoria gives any kind of a deal or special program to seniors.

Simon Fraser University also does not waive tuition and fees for students 65 and over who are seeking degrees or taking credit classes, although it has a liberal arts, 55-plus program at its downtown Harbour Centre campus that caters to an aging demographic. Roughly a thousand students are registered per term in the non-credit program that offers mostly six-week courses featuring two hours of lectures per week. With the university subsidizing the program, the cost is $110 per course, which gets reduced to $25 if you have gross income not exceeding $24,328 as a single person or $30,286 as a couple.

The menu of courses covers everything from history, literature, film and psychology to science, math and physics.

Mark Smith, acting program director, says students 55 and over often enrol because they want to stay mentally active or they have had a hankering to pursue an interest but weren’t able to until now because they were too busy raising families or working.

“They are coming now for the joy of learning.”

For instructors, it’s a chance to share their passion with an eager student body.

“The instructors love coming here because the [older] students really pay attention,” says Smith. “They are not on their phones. They are not worried about finishing a course and getting a credit. They are there for the actual interest.” É

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Healthy retirement

&

NIP

TUCK

Seniors opting for clinical procedures to turn back time

BAILA LAZARUS

I

n 2016, Brenda Green began to get uncomfortable with the bags under her eyes, which were unsightly and painful. She sought treatment through the medicare system but was told the procedure was cosmetic. Deciding to pay for the procedure herself, Green, 66, went to Dr. Ross Horton in Burnaby and says she was surprised and happy with the results.

“I was warned it would be painful with a black-andblue face because they dig in and take out the fat, then cut beside the eyes to pull the skin back,” she explains.

“But there was really no bruising at all and I was back to normal in about three weeks.

Green thinks it’s taken 35 years off her looks and wishes she had done it 25 years ago.

“I would recommend it to anybody,” she says.

Blepharoplasty – treatment done either above or below the eye – is just one of dozens of procedures that are being done in clinics around Vancouver to enhance looks or alleviate discomfort.

While Green’s surgery cost about $4,000, patients can pay upwards of $15,000 to take back the years.

Dr. Cameron Bowman, a clinical assistant professor in the division of plastic surgery at the University of British Columbia, and director of Fairview Plastic Surgery, says clinics can do everything from body re-contouring to facial rejuvination, but the majority of his older clients

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are looking at eye and facial treatments.

He estimates that 25 per cent of his clientele are in their senior years, and in general, he says, older patients are easier to work with.

Costs in Bowman’s clinic range from $3,600 for the upper eyelids to $10,000 for both eyes, upper and lower.

A skin-only facelift would be $10,000 to $12,000, while a “dual plane” – where both the skin and muscles are lifted – would cost between $12,000 and $15,000.

Costs will also vary depending on whether local or general anesthetic is used.

Though plastic surgery can yield immediate, striking results, many patients opt for non-invasive procedures as they are less expensive and less painful, with shorter recovery times.

Vanessa Grutman, business director at Project Skin MD, says skin treatment, both within a clinic as well as ongoing, at home, can yield surprising results, especially for the older generation.

BEFORE

AFTER

Brenda Green, 66, says having plastic surgery for the bags under her eyes made her look 35 years younger: “I would recommend it to anybody” | SUBMITTED

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RETIREMENT READY 2017 PUBLISHED BY BUSINESS IN VANCOUVER

COURTESY OF GORDON SASAKI

Healthy retirement

Pre-treatment

90 days post-treatment

Pre-treatment

60 days post-treatment

Pre-treatment

70 days post-treatment

COURTESY OF JEFFREY W. HALL

COURTESY OF BRIAN BEISMAN

(six months post-facelift)

What she refers to as “injectable artistry” provides a “refreshed version of yourself.”

“There are no duck lips and puffy cheeks,” she says.

“We allow people to age gracefully.”

The most significant treatments Project Skin delivers are Thermage, Ultherapy and laser treatment.

Thermage uses radio frequency energy within the skin’s collagen layer to promote “rebuilding and remodelling of collagen fibres.” It ranges from $2,000 to $3,500 and requires no down time, and results are seen within three to six months.

Ultherapy uses ultrasound to heat and contract collagen for skin lifting, especially around the neck, jawline and brow area.

“In both cases, patients are in and out and no one knows they’ve had the procedure,” says Grutman.

With laser therapy, a Fraxel laser is used to treat pigmentation, precancerous sun damage, scars and stretch marks. It requires the most down time – up to three weeks to allow the skin to heal – but can make skin look significantly younger.

Other popular non-surgical procedures include dermal fillers – Botox, which is often used on forehead lines, and hyaluronic acid, used in lips and cheeks. As we age, our skin loses the ability to retain water, Grutman explains.

The acid attracts water that gives skin a plump look.

“Once you start, your skin won’t go back to a pre-filler situation,” says Grutman.

No matter what, taking care of your skin regularly as you age is the best thing you can do to prevent the signs of aging, Grutman points out. This can include having regular facials, using proper skin products, staying out of the sun and avoiding smoking. É

Ultherapy uses ultrasound to heat and contract collagen for skin lifting, especially around the neck, jawline and brow area. The procedure requires no down time

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