an rrsp

FORT CHICAGO ENERGY TRUST $11.88 (Toronto symbol FCE.UN; SI Rating: Extra Risk) owns 50% of the Alliance Pipeline, a 36-inch diameter natural gas pipeline with a capacity of 1,550 million cubic feet per day. 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 liquids plant. Fort Chicago diversified its pipeline operations in 2004 with the purchase of the 1,324-kilometre Alberta Ethane Gathering System for $273.3 million. It’s now pursuing a number of growth projects, including investments in the proposed one billion cubic foot per day Jordan Cove liquified natural gas (LNG) terminal in Oregon, and the proposed Pacific Connector pipeline, designed to bring that gas to market. In the three months ended December 31, 2005, Fort Chicago’s revenues rose 5.5%, to $231.7 million from $219.6 million a year earlier. Cash flow per unit fell 16.7%, to $0.35 from $0.42....

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 chose annuities — contracts that give you a fixed sum every year until you die. However, returns on annuities are closely linked to the level of interest rates, and interest rates are still near historic lows. In addition, annuities have no liquidity. If interest rates and inflation were to move up, your annuity payments would remain fixed and you would lose purchasing power, but you’d have no way to re-arrange your portfolio. So our advice is to resist any urge you may feel to buy an annuity. Many investors find they are able to generate returns that beat current annuity rates over time, if they invest conservatively in the kinds of high-quality investments that we recommend, well balanced across the five sectors....