I'm Retired
Maximizing Retirement Income
As you're enjoying retirement, I will help you balance your need for safety and security with your desire for higher income. To achieve this, we follow these strategies:
Strategies for Boosting Your Income Stream The RSP Maturity Option that’s Right for You Investments with the Potential for Higher Income Locked-In RSPs/LIRAs for Your Pension Payout Strategies for Boosting Your Income Stream
When you're retired, we can help you maximize your retirement income stream in a number of ways. Some of the key strategies I might recommend include:
•Delaying conversion of your Registered Retirement Savings Plan (RSP) until you are legally required
•Withdrawing the least amount possible from your Registered Retirement Income Fund (RIF) to maximize the tax-deferred growth it provides
•Enhancing the longevity of your savings with an element of growth
The RSP Maturity Option that’s Right for You
Although you can convert all or part of your RSP at any time, all your RSP assets must be converted by December 31 in the year you turn 71. When it comes time to convert your RSP, I can help you decide which option is right for you.
•Registered Retirement Income Fund
Generally the most popular option, a RIF is essentially an extension of your RSP. Your RSP’s assets can be transferred to a RIF on a tax-deferred basis.
•Annuities
You can receive a guaranteed stream of income for life, or for a fixed term up to age 90, by converting all or part of your RSP into an annuity.
•Cash
Simply "cashing-in" or "deregistering" your RSP is the most costly maturity option. This is because the entire amount is fully taxable at your marginal rate.
Investments with the Potential for Higher Income
There are several investment alternatives that can maximize your retirement income:
•Corporate Bonds can provide higher interest payments than compared to a government bond
•Income Trusts can provide much higher income than bonds, but the distributions are not guaranteed and can vary.
•Dividend-Paying Stocks can also boost your after-tax income with dividends from Canadian corporations, which are effectively taxed lower than interest income due to the dividend tax credit.
Locked-In RSPs/LIRAs for Your Pension Payout
If you need to receive a lump sum payment from your company's Registered Pension Plan (RPP), we can help you determine whether you can transfer the accumulated benefits to a Locked-In RSP or Locked-In Retirement Account (LIRA).
A Locked-In RSP or LIRA is very similar to a regular RSP except that funds can only be withdrawn by converting to a Life Annuity or Life Income Fund.
