When life’s priorities suddenly become clear
via The Globe and Mail | April, 2011
Greg is 46, Melissa 50. They have been married for 25 years and have two children, aged 16 and 19. He works in administration, she in sales.
Melissa will collect employment insurance for four months until her long-term disability insurance kicks in, which means a sudden drop in the family’s income. Once her LTD insurance begins, it will pay about 91 per cent of her after-tax earnings.
We unfortunately have not socked away money for a rainy day, Greg writes. But they have been making substantial extra payments to their mortgage on their home in Kitchener, Ont. Greg wonders whether they should stop these payments when the mortgage comes up for renewal in three months, what else they can cut and whether they should draw on their line of credit to cover the income shortfall.
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