BMO Nesbitt Burns can help you realize your retirement goals. As a part of BMO Financial Group and part of the organization’s Private Client Group, BMO Nesbitt Burns has the expertise to address the most sophisticated wealth needs. We will make use of our wide range of retirement wealth management solutions to help you build and protect your retirement investments.
Tax efficient strategies in retirement
A Registered Retirement Savings Plan (RRSP) is required to be converted into a Registered Retirement Income Fund (RRIF) latest by the end of the year a person turned 71. In terms of tax planning, traditional thinking favors:
- Converting an RRSP to a RRIF at the last possible moment (age 71)
- Taking only the legal minimum payment amount from the RRIF every year (and if there is a younger spouse or common-law partner, using his / her age to calculate the minimum amount).
- Tapping into non-registered assets first if additional income is needed
The rationale is to minimize the amount of withdrawal from the RRIF, thereby delaying taxes. Moreover, keeping assets inside the RRIF as long as possible enables one to take full advantage of the tax-sheltered growth inside the plan.
Gender differences in retirement
Learn about some of the gender differences that might affect you in retirement:
- To start with, women generally have lower financial expectations. A recent survey indicated that one in three men thought they will need $1 million for retirement, compared to only one in five women.
- Compared to men, women are more prepared to seek expert advice from financial professionals. They are also more likely to follow that advice. Guidance from professionals in navigating the often complex task of retirement planning may have helped women avoid costly financial mistakes.
- Last but not least, there is more to retirement than money. Women tend to be more accustomed to and hence more skilled at adapting to new life situations. While men’s identities are typically tied to their jobs, women invest more time in building relationships with children, family and friends. Time spent on care giving and nurturing the family may hurt the pocketbook, but it makes the transition to retirement easier for women