RRSP's, RRIF's and Annuities.....

There are many investment vehicles that fall under the Category of RRSP's. A complete discussion of their features and benefits would be beyond the scope of this site. Let's just note that the key features offered on your RRSP's include Tax Savings, Tax Deferral and the opportunity to accumulate a retirement nest egg.

Currently, at age 69, your RRSP's need to be rolled over into an RRIF.

 WHAT IS AN RRIF ?
Today's RRIF's are designed to meet key concerns of today's grey market - protection against inflation, changing interest rates, estate preservation, flexibility and the need to defer taxes. Here I will feature products from a variety of established companies, because of the great Options and Flexibility they offer.
 IMPORTANT FEATURES
With most RRIF's, you can choose from a variety of payment options. Select how often you will be paid, which day of the month you will be paid and choose from a variety of different payment options.
 INCOME PAYMENT OPTIONS

1) MINIMUM PAYMENT

You have the choice of several income payment options. Below are 7 of the most popular payment options.

  • The legal minimum is calculated each year by taking the fund balance on January 1st of that year multiplied by a factor dependent on the annuitant's age or spouse's age if elected.
  • If you want income to start in the year the RRIF is purchased, when the legal minimum is zero, we use the legal minimum percentage based on the annuitant's current age, and start the income on the requested payment date.

2) INTEREST - ONLY PAYMENTS

This option preserves your capital investment.

  • Interest payments are based on GIFs only.
  • Periodical interest payments are calculated on an effective annual rate.
  • The first interest payment will be equal to the total of any periodical interest accruals since the date of issue of the RRIF. Thereafter, periodical payments will be equal amounts based on an effective annual rate.

3) LEVEL PAYMENTS

This option lets you know exactly how much is coming in.

  • You choose a specific level payment with one condition - the amount requested must not exhaust any of the GIFs before their respective maturity dates.

4) INDEXED PAYMENTS

This option helps you keep pace with inflation.

  • You stay on top of inflation with an initial income that increases by a given percentage every year on the anniversary of the payment start date. The percentage is limited to a single digit.
  • The requested income must not exhaust any of the GIFs before their respective maturity dates.

5) STRUCTURED PAYMENTS

This option allows you to satisfy specific cash flow needs.

  • You can take advantage of the following to tailor payments
    a) Indexing ( see option 4)
    b) Scheduled lump sum withdrawals - maximum of 3 allowed.
    c) Payment amounts can be increased or decreased at specific dates. IE: you can have a schedule of payments and dates.

6) FIXED TERM PAYMENTS

This choice allows you to make one investment decision rather than ongoing ones by choosing one fund with a specific guaranteed interest rate for the full term.

7) NO OR LOW INCOME PAYMENTS

This option allows you to defer tax as long as possible. At year end you receive a balancing payment equal to the minimum if no payments have been received, or the minimum required minus the payments received.

 BENEFIT ON THE DEATH OF AN ANNUITANT OWNER
  • If the spouse is the successor owner, the contract continues as is
  • If the spouse is the beneficiary, he/she can:
    a) Transfer the contract value to his / /her own RRIF
    b) Transfer the contract value to his / /her own RRSP
    c) Transfer the contract value into an annuity contract
    d) Receive the contract value of the policy.

I can offer a broad range of permanent life insurance products that can be used to fund your retirement years.

By implementing a financial plan which takes advantage of the tax-free benefit of life insurance, you can enjoy an adequate income during your retirement and ensure that a large portion of your estate can be preserved. If you have questions or concerns regarding this topic, please do not hesitate to call me or to use the Book An Appointment Form.