Annuities have a lot of rigid terms that can work for or against you.

The main benefit of annuities is that they offer stable, predictable income. That may make them suitable for part of your assets, depending on your age, investment experience, the time you want to devote to your investments, your desire to leave an estate to your heirs …read more »

These days, many investors who are approaching retirement worry that their retirement planning won’t generate the income stream they were banking on once they’ve left the workforce.

Some investors in this situation look for what brokers sometimes refer to as a “rescue stock” — a can’t miss trading idea that can make up for the shortfall in their retirement planning. …read more »

Registered Retirement Savings Plans (RRSPs) are a great way for investors to cut their tax bills and make more money from their retirement investing.

RRSPs are a form of tax-deferred savings plan. RRSP contributions are tax deductible, and the investments grow tax-free. (Note that you can contribute up to 18% of your earned income from the previous year, to a …read more »

One way to cut your tax bill in retirement is for you and your spouse to arrange the family finances so that you each have equal retirement income.

That’s because, if one spouse earns more than the other, the higher-income spouse would, of course, be in a higher tax bracket. That means that any extra money the higher-income spouse earns …read more »

This is part 2 of a two-part series on steps you and your spouse can take to cut your income-tax bills in retirement.

There are lots of ways to shift investment capital and income to the lower-income spouse. This lets you lower your overall tax bill right now. It also ensures that each spouse gets roughly the same amount of income …read more »

For many investors, setting aside money to pass on to their heirs is a natural part of retirement planning. But doing this successfully is not easy, and the fortune rarely lasts for long.

In fact, long-term studies show that six out of 10 family fortunes get dissipated by the end of a second generation. And nine out of 10 are gone …read more »

This is part 1 of a two-part series on steps you and your spouse can take to cut your income-tax bills in retirement. We’ll publish the second part in our next issue.

In many families, one spouse earns more money than the other. That, of course, puts the spouse with the greater income in a higher tax bracket. It also means …read more »

As investors near retirement, their advisors often recommend that they move a larger part of their portfolios from stocks and mutual funds to bonds and other fixed-return investments.

To some extent, this is an understandable retirement investing strategy, since bonds provide steady income and a guarantee to repay the principal at maturity.

Bonds will lower the long-term returns that are key …read more »

Many investors consider annuities when they are planning their retirement investing.

There are basically three types of annuities:

Term-certain annuities are payable to you, or your estate, for a fixed number of years. Your estate will receive the payments even if you die. You could outlive this type of annuity.

Single-life annuities are payable to you for as long as you …read more »

On his Wealthy Boomer web site, Financial Post personal-finance columnist Jonathan Chevreau recently made the link between the time you start saving for retirement and when you will be able to start your retirement in earnest. Click here to read the full article on the Wealthy Boomer.

Chevreau has been the personal-finance columnist at the Financial Post since 1996, and is …read more »

Pat McKeough, host of TSI Network (www.tsinetwork.ca) was recently featured in an article in the Financial Post written by Jonathan Chevreau.

A similar article also ran in The Star Phoenix, The Calgary Herald and The Vancouver Sun.

Entitled “RRSP leveraged meltdowns don’t inspire confidence,” the article discusses Pat’s opinions on the subject of RRSP meltdowns and why they should be avoided.

If you’re …read more »

One of the things that investors of all ages fear is that they won’t have enough retirement income once they’ve stopped working. Addressing this concern is usually a high priority for many of our Successful Investor Wealth Management clients.

We recommend that you base your retirement planning on a sound financial plan. Here are the four key variables that your …read more »

One of the questions we often get from clients of Successful Investor Wealth Management involves financial contingency planning. That is, how do you set up your finances and investments so that someone else can handle them if you can’t?

When you’re doing this kind of retirement planning, we think it’s always a good idea to have such an arrangement in place. …read more »

An RRSP meltdown is a strategy some financial advisors suggest as a way to withdraw money from an RRSP while paying little or no income tax.
In the simplest form, you set up an investment loan and make the interest payments from RRSP withdrawals (the withdrawals must be equal to the interest payment). Since the interest on the loan is tax-deductible, …read more »

Here are two simple retirement investing strategies that can help you maximize your investments in RRSPs.

High-risk retirement investing

Planning your retirement investing and picking stocks for your RRSPs can be difficult. It can be tempting to pick higher risk (and potentially higher return) stocks for your RRSPs. However, we believe these investments are generally unsuitable for this type of retirement investing, …read more »

FORT CHICAGO ENERGY TRUST $8.68 (Toronto symbol FCE.UN; Shares outstanding: 134.1 million; Market cap: $1.2 billion; SI Rating: Extra Risk) owns 50% of the Alliance Pipeline, which runs 3,000 kilometres from Fort St. John, B.C., to Chicago. Enbridge Inc. owns the other 50% interest. The two partners also own 85.4% of the Aux Sable natural gas liquids plant. As well, …read more »

FORT CHICAGO ENERGY TRUST $10.82 (Toronto symbol FCE.UN; SI Rating: Extra Risk) owns 50% of the Alliance Pipeline, a 36-inch diameter natural gas pipeline. It extends 3,000 kilometres from Fort St. John in B.C. to Chicago, Illinois. Enbridge Inc. owns the other 50% interest. The other assets held by the two partners are 85.4% of the Aux Sable natural gas …read more »

A question investors often ask at this time of year is “What role should bonds play in my RRSP?”

If you’re going to hold bonds, an RRSP is a good place for them.  That’s because bond interest lacks any tax advantages, unlike dividends from Canadian companies, which carry the dividend tax credit. Bonds usually have fixed maturity dates as well, so …read more »

You can now take out $2,000 a year from a RRIF without paying federal income taxes if you’re over 65, up from $1,000 previously.

This will let you save around $305 a year in tax, up from $153.

To take full advantage of the credit, you can transfer approximately $9,100 to a RRIF at age 65 (which assumes a growth …read more »

If you’re turning 69, you’ll need to wind up your RRSPs. There are three main options: You can cash in the RRSPs and withdraw the funds in a lump sum (although you’ll be taxed on the entire amount in that year as ordinary income). You can purchase an annuity. Or, you can convert your RRSPs into RRIFs.

Years ago, many investors …read more »