[MoneyGuy]

Originally Posted by calumniate

I have a question with regards to CPP. Apparently the fund has been taking a hit of sorts, and my employer has been matching my contributions for 3 years.

My dad mentioned that it's actually a good thing to contribute to CPP in this downturn, as the 'units' or stock of CPP will be less expensive so technically I'm buying more stock right now then I would be otherwise? Are there any wheels to this argument? Honestly I haven't paid much attention to my CPP - sorry if this question isn't that clear.

It doesn't have the effect that your dad is referring to, at least not like putting into an RRSP at depressed prices. It does help long-term solvency, which isn't in jeopardy anyway, but doesn't mean you're helping yourself as if you were buying shares of a stock or fund that is really worth $10 but you're buying it $7. .

Originally Posted by Russic

My Grandma is currently the last remaining of her generation and my parents, aunts and uncles stand to inherit a decent amount of money. She has hinted at the idea of just giving it to them now equally as there's "no need to postpone the inevitable". Some members of the family want that, but there is one issue ... she's becoming less and less easy to care for. She is increasingly frail and her mind is getting to the point that there's concern she won't be able to care for herself much longer. A home is one option, but those are fataing expensive. That impressive inheritance that some members of my family are hoping for could be burned up quite quick if she needs several thousand dollars worth of care each month.

I'd advise your grandmother not to give her money away. She may need it for her housing or care.

Originally Posted by MarchHare

I might be wrong, but I don't think you can control how much you contribute to CPP. It's a mandatory government program and money is automatically deducted from your pay cheque proportionate to your salary just like income tax and EI. Maybe you're confusing it with your employer's private pension fund?

You're correct. You have no control.

Originally Posted by WilsonFourTwo

The reality is that most Boomers have spent the last 40 years living the high life. They spent all of their money/credit, spent all of their kids money/credit and intend to retire on their inheritance.

I think they should be forced to live a simple, meager life as a way of trying to balance the scales. Simple homes, simple meals, simple entertainment. Want something extra......find your own cash.

/rant

(Sorry - this sh*t just infuriates me)

Please tell me you're kidding. I'm a boomer and you seem to be saying that I should curtail my lifestyle to provide for my kids. Sorry, ain't buying that. What I do with my money is none of my kids' business. We've given them money when we wanted to and we paid for a daughter's wedding, most of it anyway. They've been educated partly by me and we've supported them a lot, financially and otherwise. Your post made me laugh. Your point about credit is valid, but that's a personal decision and not for boomers' kids to dictate.

Originally Posted by BloodFetish

I assume CPP stands for Company Pension Plan, not Canada Pension Plan in your question?

The missing factor in your question is your time until retirement. A downturn in the unit price of your investments will result in you purchasing more units. Over time this will mean more money at retirement, so the younger you are the more time these extra units will have for compound interest to work it's magic. This is very good.

However if you're close to retirement age then a downturn can seriously affect your retirement income. It's because of this that people getting close to retirement age will start moving money into 'safer' investments, to minimize the effects of downturns.

I'm not a financial expert by any means. I know we have some experts at CP so please feel free to add corrections.

This is all correct, except the dollar-cost averaging doesn't apply to CPP the same as it does with your personal investments.

Originally Posted by V

Sometimes I feel like I am the only person in an office of hundreds that doesn't take a trip down south every winter. And that includes all the young punks.

I don't think it's a generational thing anymore, and I think it's funny that the old resent the young as much as the young resent the old. We are all long gone, as a society. Our metric of reasonable spending has gone through the roof. And I honestly don't know how everyone does it. I'm an engineer, make a good wage, I drive a POS, I lived in the NE for 10 years and I don't have all that much for good lulz after everything's paid for. I'm sure three kids and only one income doesn't help, but still. I'm sure I make as much as a lot of people with dual incomes, especially after daycare is considered.

ONe of my pet peeves. People spend money they don't have and are into instant gratification. You have the right idea, in my opinion.