Creating an income stream when your RRSP matures

Three basic RRSP maturity options

Unlike a Tax-Free Savings Account (TFSA), a Registered Retirement Savings Plan (RRSP) does not last forever. In fact, it has a specific date by which you must collapse the plan and choose one of three main options for what to do with the proceeds. Here’s a look at how this works. READ MORE

Annuities as an RRSP maturity option

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Is an annuity right for you?

As a growing number of Baby Boomers retire, the question of what to do with maturing Registered Retirement Savings Plans is becoming more pressing. RRSPs must be shut down by the end of the year in which you turn 69, and the proceeds either taken into income in a lump sum, rolled over into Registered Retirement Income Fund (RRIF), or used to purchase an annuity. Often, retirees will opt for some combination of these. While RRIFs are reasonably well understood, annuities are still a bit of a mystery for many. READ MORE

Important information about RRSP maturity options

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You must act by Dec. 31!

If you turned 71 this year, and you still have an RRSP, you have until Dec. 31 this year to convert it into another type of tax-sheltered plan. If you don’t, the Canada Revenue Agency can take away up to half of whatever is in your RRSP. Here’s what you absolutely need to know about RRSP maturity options. READ MORE

How to create a secure income stream for life

“Pensionize” your retirement income

Will you outlive your money? That’s the big question a lot of pre-retirees are asking. I am a firm believer in “pensioning your retirement income,” which means creating a secure stream of income from a variety of sources that will last as long as you do. And fortunately, there are a number of planning strategies that will let you do just that. READ MORE

What to do when you have to collapse your RRSP

Three ways to use your funds – and how they work

Gen-Xers, Gen-Yers, and Millennials should all have RRSPs. Sadly, most do not. The smart ones do, and are taking advantage of the powerful long-term compounding and tax-sheltering benefits of this wonderful retirement plan. Because one day you will retire. Just ask the Baby-Boomers, who are retiring in droves right now. The smart ones of that generation opened up RRSPs early, and many of those with 30 or 35 years of contributions are sitting on RRSP nest-eggs worth a million bucks or more. The big question for them is what to do with that pot of gold now. READ MORE

How to guarantee retirement income

Insured annuity strategy guarantees an estate too

One of the big questions facing new retirees is how to protect your income during retirement while leaving something to children or grandchildren in your will. Straight annuities can provide a guaranteed stream of income, but once the annuity is paid out, there won’t be much left for beneficiaries. Luckily, there is a solution to this problem. READ MORE

Cheer up! You might have more retirement income than you think

Where’s your retirement income hiding?

Where will my retirement income come from? A worryingly large number of higher-tax-bracket individuals I talk to these days ask me that same question. After looking at their Canada Pension Plan payment, perhaps some employer sponsored pension funds accumulated over the years, a hodge-podge of RRSPs, TFSAs, and non-registered investment at various brokerage firms, some of these folks are surprised to discover they have a retirement nest-egg of $1 million or more. But how do you convert that into a steady – and above all, safe – income stream? READ MORE

Creating a retirement income stream to 100

Annuities are just one tool in your arsenal

One of the first questions many of my high net worth clients ask me is whether they’ll outlive their money. Now, if someone comes to you with $500,000 to $1 million to manage, you’d think they’d be feeling pretty comfortable. You’d be wrong. It’s all a matter of perspective. These days, to maintain the kind of lifestyle you’re used to in retirement, you pretty much have to plan to the age of 100. It sounds incredible, but it’s true. So if you retire at, say, age 60, you’d have to fund another 40 years of retirement with that million bucks. Suddenly, it doesn’t sound like so much. READ MORE