For many Canadian seniors, maintaining their independent residence sometimes isn't a feasible option. Health issues may make living alone a dangerous situation for some people. Children and/or caregivers of seniors who are facing this issue may be confused as to what is entailed, what level of care is needed for that individual, and what is covered by provincial insurance and what isn't.

Some seniors may be able to live in their home (at least for a period of time), provided they have In-Home Care services. Many different programs are available; some are funded by government agencies or non-profit organizations, while others are offered by for-profit private service organizations. The home care services that are typically provided include:

• Personal nursing care
• Physiotherapy and/or occupational therapy
• Speech therapy
• Counseling
• Day programs
• Friendly visiting
• Transportation
• Foot care
• Homemaking and/or home maintenance
• Information and/or referrals
• Meal programs (i.e. Meals On Wheels)
• Respite Care
• Emergency Response Service

If you think that the senior you care for may need these types of services, contact a local agency to get an assessment. Some services may be covered under Ministry of Health funding, regardless of income; as well, some may offer a subsidy for those who fall within a certain income bracket. Some however, will have to be paid for out-of-pocket if you do not have private insurance coverage.

For seniors who are no longer able to live on their own, a retirement residence may be the best solution. This can be the ideal arrangement, giving the senior the level of support and security they require while being able to maintain their independence and privacy. A retirement residence can also offer the social aspect for those seniors who are feeling lonely and isolated. Retirement residences can greatly vary in terms of what services they offer, as well as the types of accommodation they offer (i.e. single or shared rooms), as well as prices. The majority of retirement residences are privately owned and operated with no government funding, which means you and/or the resident must assume all the costs.

If you are looking into a retirement home for a loved one or someone you provide care for, it is essential that the senior is actively involved in the selection process. Some things to remember when choosing a retirement residence are:

• Make a list of all homes you plan on visiting; also make a list of questions you want to ask, so you won't forget when you are there. Keep notes on the different homes you visit.
• Ask questions not only of staff, but of the residents. Ask their perceptions of the residence, as well as what they like and dislike.
• Don't visit just once, plan another visit, but at a different time of day (i.e. go for a lunch or dinner)
• Ask to view all of the residence, not just the room and common areas. Checking the kitchen and stairwells can give you a good indication of the level of cleanliness and how often things are maintained.
• Ask if they will allow the prospective resident to actually spend a night at the residence, so that they can get a better idea of what to expect.
• Ask for a list of families who will give the facility a recommendation.
• Ask about the neighborhood, i.e. how close are such things as hospitals, churches, dentists, etc.
• Ask about the fees, i.e. is everything included in the price quoted, or will you have to pay extra for additional services, and if so, how much
• Ask how often are their rates increased, and how much notice do they provide for the increase in price

Long-Term Health Facilities (formerly known as nursing homes) are different than retirement residences. A long-term facility is needed for those seniors who have significant health issues and who require a greater deal of care. This type of care is needed for those who, because of age and/or level of disability, can no longer be properly cared for in the community. This is an ideal solution for those seniors who require care on a regular basis, but who do not require long-term hospitalization. Some long-term facilities are publicly funded, while others are not.

If you are facing the challenge of finding services for a senior in your care, you need to find out what exactly their insurance will cover. You may also want to consider the possibility of needing these services in the future, and have the right insurance that addresses this issue. Tangible offers a hybrid policy that combines life insurance with a long-term care component. If needed, a certain percentage of the policy converts into LTC insurance, if not, it simply remains as life insurance. This type of policy offers you the flexibility and security of being able to ensure that you will have the right type of coverage for whatever your needs may be.

Canadians who have RRSPs have the opportunity to withdraw up to twenty thousand dollars tax free to use as a down payment on a home. This money also does not have to be claimed as income on your tax return. This is a great opportunity for those who wish to be homeowners, but cannot afford to save for the down payment and contribute to their retirement savings.

The Federal Home Buyers Plan is available to those who qualify as "first time" homebuyers. This is defined as any Canadian who has not owned a home that they have occupied as their principal residence for a minimum of five years. You can qualify for the program at any time during the fifth calendar year since owning a home. This rule applies to both you and your spouse regarding previous home ownership. If you have owned a home within the previous five years, but your partner has not, then while you are not eligible, your partner will be. However, if you are using the homebuyers plan again, you must not have an outstanding balance on the previous Home Buyer Plan loan.

There are certain criteria that must be met in order to qualify for the HMP plan.  You must be considered a factual resident of Canada, meaning that even if you are not currently living in Canada, you are considered a Canadian resident for income tax purposes. You must also enter into a written agreement (offer of purchase) to buy or build a qualifying home. This agreement can be with the builder, contractor, realtor or private seller. It is important to know that simply obtaining a pre-approved mortgage does not satisfy this requirement. You must also intend to occupy the home as your principal place of residence within one year of buying or building your home. Certain exceptions can be made if you are unable to reside in the home, as long as your original intention was to move in within a year. As well, either you or your spouse (this includes common law spouses) cannot own the home more than 30 days before the planned withdrawal.

You must make the withdrawal request for the funds in the same year in which you wish to participate in the Home Buyers Plan. Each person (if applicable) can withdraw a maximum of twenty thousand dollars from your own RRSPs. Multiple withdrawals however, are allowed. The home that you are buying must be located in Canada, and can be either an existing home or a home under construction. This includes single detached family home, semi-detached homes, town home, mobile home, condominium unit, a share in a co-op, or an apartment.

You must begin repaying the withdrawal under the HBP starting the second year following the year in which you made the withdrawal. You make the repayments by contributing to any of your RRSPs in the year the repayment is due or within the first 60 days of the following year. However, you cannot designate sums to be considered s payments to your spouse’s (including common-law) RRSP are not considered payments, and vice-versa. As well, transferring amounts from another registered pension plan, deferred profit-sharing plan or registered retirement income fund will not be considered as a payment.

An important part of any financial plan is dealing with your debt. For most Canadians, debt is a fact of life and is not detrimental to their overall financial goals. However, too much debt can negatively impact financial health. Missing payments may end up hurting your credit rating; as well you may not be able to save and/or invest the money you need to in order to accomplish your long-term goals.

Not all debt should be considered "bad". Debt that is incurred for the purposed of attaining assets that will more than likely increase in value is considered "good" debt. This includes buying a home, borrowing money to invest (stocks, bonds, RRSP's) that can end up making you more money than what you spent on the interest payments. These assets can also be used to secure the debt in order to qualify for lower interest rates. Money borrowed for investment purposes may also be tax-deductible.

Debt that is viewed as "bad" comes in the form of purchasing items that depreciate in value (cars, electronics, etc), or is used for daily spending habits. Debt is usually incurred this way in the form of credit cards. In fact, debt in this form can actually hurt your chances of getting a mortgage and/or the amount you are qualified for. Credit cards that have really high interest rates can keep you in debt for a long time if you cannot afford to pay off the balance immediately. 

There are ways to manage your debt without having to to take the drastic measure of declaring personal bankruptcy. The following tips can be used as a guideline not only for those currently in debt, for also for those who wish to avoid having their debt become out of control.

• Spend less than you earn. Keep a running log of everything you spend. Make sure to factor in expenses that may only occur once a year (house insurance, vacations, Christmas spending, etc). These expenses should be divided by 12 and added to your monthly total of what you spend. Your log will be able to help you determine your earnings/expenditure ratio, and give you an idea of where you can cut back, i.e. taking lunch to work, etc.
• Restructure your debt. Almost half of Canadians are paying more interest than necessary due to the fact that they haven't shopped around. Invest some time researching getting a cheaper interest rate for not only credit cards, but for your loans. 
• Refinance your mortgage. You may be able to get a lower interest rate on your mortgage by refinancing it. You also may want to consider using a home equity loan and use the money to pay off credit card debt, which is generally higher in interest payments.
• Personal line of credit. This can be one of the cheapest ways to borrow money. Lines of credit can be secured against your assets, or unsecured. The rates do vary with the prime, but will be considerably less than the interest charged for credit cards. Money obtained through a line of credit is available for any purpose.
• Consolidation loans. Unlike a line of credit, this money is borrowed for the specific purpose of paying off debts that carry higher interest rates. The bank may directly pay off your creditors in order to insure that the money is spent in the manner for which it is intended. The bank may also require that you cut up your credit cards and/or that no new debt is incurred.

The amount of your debt along with the amount of your income will determine the best way for you to manage your debt. The end result will be a healthier financial plan, and the realization of your long-term goals.

Midnight of February 29, 2008 is the deadline for RRSP contributions for the tax year of 2007. RRSPs give Canadians a tax break, as well as letting your hard earned money grow tax-deferred. This differs from capital gains and interest accumulated on other investments, which are added to your taxable income for the year. As RRSPs are deducted from your taxable income, it effectively reduces the total amount that is subject to taxation. Waiting until retirement to cash in your RRSPs means that you are now in a lower income bracket, therefore you will pay less taxes, as your RRSPs are only taxable upon withdrawal.

RRSP is an acronym for Registered Retirement Savings Plan. It is not a specific financial product. It is rather a number of investments that are registered with the federal government specifically earmarked for your retirement. The Income Tax Act has a current list of eligible investments from which you can choose; the most popular is mutual funds, guaranteed investment certificates, accumulation annuities , segregated funds, and equities. However, you have a wide range of possible investments to choose from, depending on the financial risk you are willing to take. Some investment choices are quite volatile; they can make you a lot of money, but you must be prepared to take the risk of losing a lot of money. Others are more conservative; you may not make as much, but the risk factor is lower. Talk to your financial advisor about which types of RRSPs are best for your retirement savings plan.

Due to last year's federal budget, Canadians can now contribute to RRSPs until the end of the year in which they turn 71 as long as they are still earning income. This is a 2 year extension from the previous deadline. Once this deadline has been reached, 3 choices will be available:

1. Converted the RRSPs into a Registered Retirement Income Fund (RRIF) which is a tax-deferred retirement plan. Like RRSPs, the RRIF account is registered with the Canadian Revenue Agency. RRIFs are used to generate income from savings accumulated from the previous RRSPs. Once an RRSP has been converted into a RRIF, no further contributions can be made. RRIFs offer an annual minimum withdrawal which is cashed out and sent to the accountholder; this amount is tax free.
2. Purchasing an annuity. This is a good financial idea when interest rates are higher.
3. Cashing out. This is not recommended as taxes will have to be paid on the whole amount.

The 2007 tax year for the first time also offers senior couples the option to split their pension income. They can now allocate up to 50% of their eligible pension income to their spouse/common law partner. This includes company pension plan payments, RRIF payments as well as annuity income. For those who are still working and contributing to their RRSPs, it may be advantageous to contribute to a spousal RRSP if your spouse/partner has either no or little income for the year.

You can "over-contribute" by up to $2000 to your RRSP without being penalized. While you will not be eligible for the tax deduction, you will benefit as the earnings will be tax-free. Consider the option of borrowing money if you do not have the available funds to contribute the maximum amount; you may be able to make more money than you will spend on the interest for the loan. To calculate what your maximum allowable contributions are, use the calculator found at the Canadian Savings Bond website.

It's also important to decide who will be the beneficiary of your RRSP. By naming your spouse/common law partner, dependent child or grandchild, the proceeds upon your death may be tax-deferred even longer. Discuss this with your financial advisor in order to set up the most beneficial plan.

Most people assume that only those with wealth need a financial planner. However, everyone can benefit from professional financial advice, especially when it comes to retirement planning issues. Hiring or consulting with a financial planner can help Canadians avoid costly financial mistakes that can greatly affect their future.

A qualified financial planner will have a broad range of financial knowledge, including such issues as insurance, tax planning, investments and estate law. He or she will be able to help you coordinate your financial strategy with the other relevant parties, such as your estate lawyer, insurance broker, investment professional, etc. The financial planner you choose will be able to cover all aspects of your financial health, and make sure all these areas are sufficiently covered.

It's important to recognize that many provinces do not regulate the term financial planner. There is however a not-for-profit organization known as the Financial Planners Standards Council (FPSC) which sets the professional standards for the industry. The FPSC sets, enforces and promotes the highest competency and ethical standards in the financial planning industry. Planners who are recognized by the FPSC are denoted by the letters CFP, which stand for Certified Financial Planner. Financial planners who have this credential have passed a national examination for financial planning and are held to a strict professional ethic.

Whether you want to consult with a financial planner, or plan on hiring one, the following  tips will help you choose the planner who’s right for you:

• Have a basic idea of what you want. While your financial planner will help you come up with a concrete financial plan, have a general idea of what your goals are as well as thoughts regarding insurance, estate planning, investing, etc.
• Be prepared. Do your homework to familiarize yourself with various financial planning strategies as well as the terminology.
• Get referrals.  Ask your friends and/or colleagues who they use for their financial planning. You can also contact the FPSC for a referral to a professional financial planner.
• Ask to see qualifications.  A professional will have no problems disclosing their education status, what their degree is in, as well as if they are qualified as a Certified Financial Planner.
• Shop around. Plan on interviewing several financial planners. Ask such questions as how long they’ve been in business, whether their assistants will be handling your account, etc.
• Do a background check. You can contact their professional associations to see if complaints have been lodged against someone, and if so, what the outcome was.
• Ask for references. If the financial planner you plan on using has associations with other professionals i.e. insurance agents, investment counselors, etc., ask for their phone numbers so you can ask them questions.
• Know what to expect. Get a document in writing about the method of compensation, qualifications, etc. so you know exactly what the financial planner is offering, as well as the method of payment.
• Reassess the situation on a regular basis. If you are hiring a financial planner on a long-term basis, know what's going on. Schedule regular visits with your planner so he or she is aware of your changing needs, as well as time constrictions.

Once you have decided on which financial planner you will be using, whether for a consultation or a long-term relationship, you’ll need to do some thinking on your own about your finances. While your planner is there to give you valuable advice, you need to be knowledgeable about your financial status, as well as the areas you need the most help with. The areas that are most common in financial planning are:

• Budgeting: Regardless of income, everyone should have a household budget. Making and following a budget will let your financial planner know exactly how much money you will have every month to invest or save. This will help your planner to set up a plan that will best suit your needs. Your planner will also have suggestions about how much money you will need every month in order to reach both your short and long term financial goals.
• Saving and investing: In order to reach any sort of financial goals, this needs to be determined. You will have to decide on short term financial goals such as savings for a vacation, new cars, etc. You also need to decide on long term financial goals such as age of retirement, university education for your children, etc. A financial planner will be instrumental on helping you figure out the exact amounts, and the best investing plans for you in order to reach your goals. You and your planner will also have to decide what level of risk is going to be involved in your investment strategy.
• Insurance: Your planner will be able to look at what you currently have insurance for, and whether or not it is sufficient coverage. It's important that you have the right coverage so that your assets are protected, as well as coverage for if you can no longer work, etc. The proper amount of life insurance is also important should anything happen. Your financial planner can work in conjunction with your insurance broker to make sure that all your insurance needs are covered.
• Debt: Your goal should be to get out of debt, and your financial planner can help you devise a way to make that happen. Make sure you have all the information such as credit card balances, loan statements etc. in order to accurately calculate the total amount you owe.
• Taxes: This is an important part of your financial plan. Your planner will be able to help you with a strategy that can minimize your tax liability. Proper tax planning is essential to a successful financial plan.
• Estate: Your financial planner can help you make sure your plans are carried out as you wish. Depending on the size and intricacies of your will, your financial planner may also be one of your executors. You can also get advice on the taxation issues that will be applied to your estate.
• Retirement: In order to enjoy your retirement, you will need to have money saved. Letting your planner know at what age you want to retire, and the type of lifestyle you would like to have will enable him/her to set up the proper investment strategy for you.
• The whole financial picture: It's obvious that are many factors to consider when setting up a successful financial plan. This is where a planner is the most help; to put together all these components and give you the best advice in order to attain all your goals.

A financial planner, whether for a consultation or a long-term relationship, can be a great asset. Even if you don't have a complex financial situation, getting some help and clarity on your financial issues can make sure that you have the latest information and advice available. Your planner will be able to consider all the aspects involved and help you attain your goals. For more information on financial planning and choosing a qualified planner visit the Financial Planners Standards Council, you can also obtain a list of qualified professionals in Canada.