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

When to trigger your retirement income streams

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Making the pension decision is not so cut-and-dried

The big question most retirees ask is whether they’ll outlive their money. As you age, healthcare costs rise, and the question of long-term care can become a problem. Will you be able to afford to stay in your home? Will the income from your savings and pensions cover your expenses? But a question financial planners hear even more frequently is “When do I trigger my pensions and other income streams?” Years ago, the answer was simple: “At age 65.” These days, it’s not so cut-and-dried. READ MORE

Where will your retirement income come from?

Start planning now so you don’t outlive your nest egg

The retirement planning conundrum never seems to change. It just gets more complicated. Ensuring sufficient income for retirement is now on the radar for every so-called Gen-Xer, and increasingly for Millennials as well. In short, if you’re in your 30s or 40s, it’s time to get serious about retirement saving. If you think “middle age” only starts at 50, think again. As a wise man once pointed out, “I’ll consider middle age to be 50 when I’m guaranteed to live to 100.” READ MORE

Year-end personal planning tips

Time’s running out for these 4 financial strategies

It’s already getting rather late in the year to set up financial strategies that will have a tax-saving or other impact for 2015. However, there are a number of items you can attend to before the year is out, including deductible payments, tax-loss selling, portfolio rebalancing, and RRSP maturity options. Here’s what you need to do. READ MORE

The retirement income solution

How to make your nestegg last through retirement

How much should I withdraw every year from my investment portfolio so it will last through my retirement? This is a problem all Baby Boomers are wrestling with. Many high net-worth investors wish to maintain a lifestyle close to what they enjoyed during their peak earning years. This may in some cases be possible, especially if retirement savings are substantial. However, even in the case of high-bracket retirees, two key issues must be addressed to come up with an optimal withdrawal rate: longevity and inflation. READ MORE

When to turn on your retirement income stream

There’s more to it than just dipping into your savings accounts

Q – My husband and I are both 45 and set to retire in 15 years. We have the majority of our money invested in mutual funds divided between RRSPs and cash accounts. We are looking to do some planning and wonder where we should be withdrawing money from first in retirement?  –  Asked by T.S. READ MORE

Teed off with ‘T-series’ funds

There are better ways to generate retirement income

“T series” mutual funds, so named because they are supposedly “tax efficient,” have become a popular type of mutual fund for investors seeking a steady, high annual cash payout. The payout rate is given in the name of the fund. For example, a “T6 series” fund pays out at a 6% annual distribution rate. Now, most funds do not produce enough income to pay out 6% distribution. So how do they get such a high payout rate? Simple: They give you your own money back. Is it worth it? 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