Avoiding the "Rough" in Retirement

Through our involvement with a variety of group retirement plans we have built a lasting relationship with many past employees as they transition into retirement. Here are a few of the most common pitfalls we help our clients avoid in retirement.

Successful retirement planning requires personalized strategy and execution.

Decumulation of Registered Funds

Registered Funds, specifically those in a tax deferred environment such as an RRSP, Pension Plan, RIF, or LIF are often scrutinized for their innefficient taxation as income when they are included in an estate. You will need to plan to decumulate these funds in retirement; however, it must contend with modern life expectancy expectations.

Withdrawing registered funds more aggressively often leads to withdrawals being made in a higher marginal tax rate and may impact the sustainability of your retirement funds if they are not reinvested in a tax efficient manner.

A large tax bill is never an intended outcome; however, many clients would prioritize stable and reliable retirement income for the rest of their lives.

Tax Withholding

We run detailed retirement income projections to ensure our clients are not surprised by their annual tax filings. A large balance owing to the CRA can cause unnecessary stress and is easily avoided with the proper withholding tax configured on income sources.

End of Life Care

A stay in a retirement / nursing home can be expensive, and without proper planning many people are forced into an uncomfortable reality when they need the most help. We often help build contingency plans for clients, which consider all of their assets, to help ensure their end of life care expenses are included in their retirement plans.

Tax Efficient Accounts

We help set up our clients for success by ensuring they are maximizing the tax advantaged investments accounts available to them before and during retirement.

The most obvious example is the Tax Free Savings Account. This account can give retirees access to much need cash for larger one time expenses without impacting their taxable income in a given year. This account is also a very tax efficient way to transfer wealth to the next generation.