Two questions have to be asked with regard to RRSPs: "when do I start to withdraw?" and "how much do I withdraw?" Unfortunately there is no cookie-cutter answer for either of these questions; every situation is unique. Does the retiree have a defined benefit pension plan or one that is defined contribution? Is he or she planning to retire early, at age 65, or later?

An annuity is a retirement income tool where a single lump sum is paid as a premium to an insurance company in exchange for a policy that generates a stream of income. This policy can be based on single or joint lives, it can provide level income or adjusted each year for inflation, and the annuity can either be paid for life or for a specified term.

Understanding the differences between term insurance and permanent insurance will help you to choose a product that best reflects your risks and your needs.

Term Insurance provides a fixed amount of coverage typically for periods of 10 and 20 years and then expires when the owner reaches a certain age (i.e. 85). After each specified period or “term,” the insurance renews automatically and the cost of the insurance renews at an increased premium.

Considerations for structuring a retirement income plan

Retirement and estate planning can be overwhelming for those brave enough to take it on. Wading through the seemingly endless amount of available information on this subject can be daunting. Without a fundamental framework in place to help guide you through the process, you can end up getting lost. Below you will find such a framework we call, The Bucket Solution™. We use this tool with our clients, and we hope that readers of this post can benefit from it as well.

Make sure you have your RRSP contributions are in order. Here are some quick facts to give you a helping hand.

Saving in Your Accumulation Years

There’s only so much time to build your nest egg for retirement. To put this in to perspective, here is an example we like to use with our clients. It goes like this…

When planning your estate, one of your biggest decisions is who you want to leave your money to.