Prepare for Tomorrow
Being financially prepared for retirement is only part of the journey. Paying attention to your emotions and maintaining an open line of communication with the people you trust most — your family, close friends and professional advisors — is the other part.
Ask yourself this one questions to start:
What will you do to stay happy and engaged in retirement?
As we mentioned there are several sources that make up your retirement income and knowing how they fit together will help mitigate the taxes you pay.
The Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) are pension payments available to all working Canadians, funded by mandatory contributions from employers, employees, and self-employed Canadians.
Old Age Security (OAS) is generally based on Canadian citizenship or legal residence, as well as the period of Canadian residence. If you have an income over the threshold ($79,054 in 2020), your benefit will be “clawed back” (reduced).
You may have other sources of income such as RRSPs, TFSAs, non-registered investments, and more.
We will help to identify the sources and develop a tax efficient strategy that fits your retirement lifestyle.
There are ways that you can generate tax-efficient income. The first is to structure your investments in the appropriate accounts (RRSP, Non-Registered, TFSA , Whole Life) and then look at securities that provide capital gains or Canadian dividends.
Investing in lower volatility investments and having a broad diversification strategy for your portfolio may be good ways to reduce short-term market risks, but it’s always a good idea to keep the long-term in mind — even though you’re nearing retirement.
We will help you decide the best approach to managing these key concerns.