Generating Income from Your Investments

At some point in time, you will draw income from your invested assets. You will want to make the most of the assets that you have accumulated over the years. You can do that with a well-designed income plan.

Looking to your investments for income often requires a new way of thinking. After so many years of watching your assets grow, it can be a little unsettling to see them diminish in value. Your concerns may shift from growing your assets to preserving them. And tax efficiencies can take on greater importance. How you manage your investments and the amount of income withdrawn will have a direct impact on the lifestyle you lead and your long-term financial security. It all adds up to finding the right balance and the need for a well thought-out plan.

A Personalized Approach

For many people, generating income from their investments is only a vague concept, until the time to do so is near. At that point, a number of questions and competing priorities can emerge. How much income do you actually need, and at what frequency? What will that do to your tax situation? Will you have enough money to maintain your lifestyle? How do you cover contingencies, such as health issues or emergencies? Can you afford to treat yourself to a special trip or purchase? Will you be able to leave a legacy to your family or a charitable cause? The answers to these questions will depend on your unique personal circumstances and goals. As a result, your approach to receiving income from your investments must be customized to match your needs.

Benefit from Professional Advice

Whether you are receiving income from your investments to enhance your current cash flow or want to build a comprehensive retirement plan, you are wise to take advantage of the knowledgeable advice from BMO Nesbitt Burns. We can help you weigh your options against your goals and consider trade-offs between current income and long-term financial needs. In addition, we can introduce you to strategies that allow you to safely tap into your capital without compromising your financial well-being. The end result is that you will have a personalized income plan that best meets your income needs today and for the future.

The Benefits of an Income Plan:

  • Help with managing your basic monthly expense requirement

  • Help you plan for major expenditures such as vacations or 2nd homes

  • Identify funds for emergencies and contingencies

  • Minimize the impact of income taxes on your retirement and your estate

  • Detail income investment options appropriate for your needs

  • Outline prudent use of capital

  • Address long-term financial security

  • Help your children get started on their first home or new business venture

Plan in Advance for Your RSP Conversion

The year that you celebrate your 71st Birthday is when you must convert your RRSP to a Registered Retirement Income Fund (RRIF).
You will have to the end of that calendar year.

To ensure you have plenty of time to consider your options, we can discuss your conversion well in advance to determine the best course of action.

Please contact your BMO Nesbitt Burns Investment Advisor for more information and to learn how you can start generating income from your investments.

®"BMO (M-bar roundel symbol)” is a registered trade-mark of Bank of Montreal, used under licence.
® "Nesbitt Burns” is a registered trade-mark of BMO Nesbitt Burns Corporation Limited, used under licence.™/® Trade-marks / registered trade-marks of Bank of Montreal, used under license.If you are already a client of BMO Nesbitt Burns, please contact your Investment Advisor for more information.