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Message From Terry |
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Financial
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This newsletter is courtesy of Terry Fay and RetirementByDesign.ca. Please remember that while strategies outlined within this newsletter may be appropriate for some investors, you should always consult a financial advisor to determine if they are appropriate for you.
Sincerely,
Terry
Hello:
It is hard to believe that September is here. The kids are back in school and for most of us vacations are in the past as we look forward to Thanksgiving and the holidays.
It is also a time that for those who turn 69 years of age this year to change their RRSPs to a RRIF. Every year this segment of the population is growing in number. It is estimated that by 2025, seven million Canadians or almost one quarter of the population will be of retirement age.
Common concerns for this growing demographic are how they will spend their time in retirement and whether they have saved enough money to provide the financial freedom they need.
As I have said in the past newsletters, retirement is more than sitting on the beach all day (I have to admit it does sound great). Retirement represents an opportunity to find new interests or take advantage of interests we never had time for while at work.
If you are, or you know someone, turning 69 years of age read this issue and pay particular attention to the Financial Planning tip at the bottom of this page. Feel free to pass this eNewsletter to a friend or family member.
As we move
forward into the last quarter of 2005 take some time to review your financial
plans and make sure you are on track. Before you know what hit you it
will be 2025 and we will be one of the seven million Canadians at retirement
age. Will you be ready?
TAPPING THE EQUITY OF HOME SWEET HOME
One of the more intriguing financial ideas introduced in the past decade is the concept of reverse mortgages. We’ve all seen the ads: an elderly couple singing the praises of their financial decision and the benefits that it has brought to them. But like everything that seems “too good to be true” there are many disadvantages to this concept as there are advantages. Fortunately, there are alternatives to the reverse mortgage that could provide greater flexibility to homeowners at less cost while helping them achieve the same goal.
Click here to find out "How a Reverse Mortgage Works"
FINAL RRSP CONTRIBUTIONS AT AGE 69
Tax Managed Investing
The clawback of government benefits can have a significant impact on an individual’s retirement income. Some careful RRSP planning as age 69 approaches, however, can reduce taxable earnings in retirement – and reduce the clawback of government benefits.
In general, Canadians should take advantage of every contribution opportunity available to them before they close their RRSPs. By reducing taxable earnings, many investors can reduce the clawback on income-tested government benefits.
The Impact of this Clawback Can Be Significant
For example, in 2004, the clawback of Old Age Security benefits begins when an individual’s income reaches $59,790, with the full benefit amount – approximately $5,550 – clawed back at an income level of about $96,800.
Tip
RRSP deductions can be carried forward indefinitely, and can be spread out over several years in order to reduce taxable earnings in retirement.
Click here for more TIPS!
All you really need to know is that we are committed to helping our clients achieve financial security and peace of mind.
Our Mission: Enhancing peoples lives by creating a positive life vision and the money to support it through our unique approach to financial planning.
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Referrals through Dundee Mortgage Services Inc., powered by Invis.
Mutual Fund Products Offered Through Dundee Securities Corporation.
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