Your Financial Goals
Transition to Retirement
 When you retire from the public service, you generally receive a retirement allowance, a portion of which can be transferred into your RRSP without contribution room, based on CRA Eligibility.
Once retired, you can establish a regular income stream from your investments on a
tax friendly
basis. For optimal results, it is best to discuss the many options available with your Tradex advisor.
It may also be recommended to draw a portion from your RRSP to minimize lifetime taxation, including potential Old Age Security claw backs after age 65. Once again, we can design flexible options for each situation individually.
As you transition to retirement, you may wish to review your term coverage needs. This is a good time to sit down with a professional financial planner to rebalance your coverage based on your reduced needs for debt coverage and replacement income. This is also an excellent time to assess your estate planning opportunities.
Annuities are a way to ensure income after retirement or when an income stream needs to be guaranteed. Tradex has access to a range of annuity plans that can be customized to your needs and provide regular guaranteed payments after retirement or to help fund ongoing expenses. The premium is a lump sum premium based on the duration and payment amount of the annuity required
Guaranteed Minimum Withdrawal Plans are similar to annuities but they allow room for some growth while protecting the investor against risk. Tradex can custom tailor this type of plan to meet your specific needs.
Annuities and Guaranteed Minimum Withdrawal Plans both offer guaranteed income streams for those individuals who have tighter budgets and longevity concerns.
Registered Retirement Income Fund
A Registered Retirement Income Fund (RRIF) is an account designed to provide retirees with a source of income after they have retired. Usually, a RRIF is comprised of the funds that roll over from an RRSP, as an RRSP cannot be kept after the age of 71. The capital and interest in a RRIF accumulates tax-free, but is subject to tax upon withdrawal. Persons with an RRIF can withdraw any amount of money from the fund at any time, but any amount over the minimum will be subject to various degrees of withholding tax. The funds in a RRIF can only be sourced from another RRIF, an RRSP, or another pension plan.
Once you reach age 71, you must convert all RRSPs to RRIFs and start withdrawing the legislated amounts the subsequent year. Timing of the withdrawals will depend on personal preference and required funds for travel, tax payments, cash flow maintenance, and alternate investments.
Frequently, couples wish to centralize investments to provide continuity and ease of management during health concerns. Tradex offers self directed RRSPs, access to discount brokerage services, GICs, Insurance products, and access to banking services to facilitate this “one stop” approach. |
