After a lifetime of hard work, retirement is the chance for you to reward yourself. So, whether your dream is traveling the world, relax playing golf or spending more time with family, you want to make sure that you save enough to enjoy that lifestyle.

But how much do you need to retire? The question is more complex than it seems, especially when you consider your other financial obligations, such as daily living expenses, car payments, paying off your mortgage and funding your child’s education. For some, putting all these pieces together can be daunting.

Regardless of your retirement dream, it won’t happen on its own. You need to takes steps to make it happen. And your Investment Advisor can help. Together, you can create a sound retirement plan, so that you can turn that dream in to reality.

As part of your retirement planning, Your Investment Advisor will examine how you can you benefit from registered savings plans such as Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF) and whether you are currently getting the most out of these plans.

Contributions into an RRSP can help reduce your taxable income. Also, you don’t pay taxes on any income you earn on your contributions, until you withdraw money from the plan. That’s also where your RRIF will take over.

Once you’ve reached your goal of retirement, your RRIF acts like your RRSP, but in reverse. Instead of contributing into the registered plan, you now take the money out.

Meanwhile, any income that continues to be generated within the plan, you still don’t pay any taxes. You’re only taxed on the money that’s withdrawn. But once retired, your income is generally lower, so you pay less tax on the money you take out.

« Previous  I  Next »