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Brad MacBeth
By Brad MacBeth
When people are saving for retirement the focus tends to be solely on accumulation, and rates of return. But how are you going to get at that money when you retire? Depending on how you access that money, you may pay anywhere from no tax to 44% in taxes.
Will it be enough?
And how does inflation fit into the picture? With inflation, rates of return, and taxation, will you have enough money to see you comfortably through the rest of your life when you retire? Running short of money when we are elderly, and perhaps infirm, is the greatest retirement fear for Canadians.
The solution lies in building layers of retirement income.
Almost everyone will have at least two sources of income when they retire: Canada Pension Plan and Old Age Security. But most of us will have a few other sources, including RSPs, employer pensions, other investments, Tax-Free Savings accounts, and others.
The key is developing your retirement savings strategy with the retirement income in mind. Using different sources and strategies for your retirement income will help to ensure that you have enough to manage inflation, taxation, and to guarantee that you will not run out of money. Bonus points if your plan helps to maximize government entitlements and minimize clawbacks.
Want to learn more about building layers of retirement income? We’re offering a free Lunch and Learn session on Thursday, April 24th, in our boardroom downtown. Lunch is provided and there’s no cost to you, but space is limited, so book right away. You can book by giving me a call or dropping me an email.
Had a great opportunity to meet Preet Bannerjee last week. Preet, formerly an advisor with Scotia McLeod, is now VP of Pro-Financial Asset Management, and an industry pundit (recently on CBC’s The Lang and O’Leary Exchange). Preet has some interesting takes on personal finances and the financial services industry, which you can see at his aptly named blog WhereDoesAllMyMoneyGo.com
Brad MacBeth is the principal of MacBeth Group Financial Strategies. He can be reached at (250) 448-4817, through the website www.macbethgroup.com, or by email at bmacbeth@macbethgroup.com
