Annuities Canada

Remember that the government represents only about 30% of our retirement income, the pension scheme offers another company 30% and many of us do not. It is up to individuals to invest wisely in the short term and long term to compensate for falling short, if he or she would like to live comfortably in retirement without giving up some pension. Now you get to the year of the conversion of an RRSP, you are faced with the choice to choose either to convert your Registered Retirement Savings in an RRIF or an annuity. In this article we will discuss the advantages and disadvantages RRIFs and annuities.

I. If you qualify for the following sources of retirement income, it would be wise to consider a RRIF
1.Old OAS (OAS).
2.Canada Pension Plan (CPP).
3. A company pension plan.
4. Other assets not listed.
It would be wise to convert some of your RRSP into a RRIF, as you will be better able to provide the flexibility and control of tax and estate planning purposes of a RRIF can because your monthly income is guaranteed by 4 sources above.

You can then consider stunning maturity of your investment in RRIF generates required cash flow for withdrawals such as GICs or bonds and buy 20% of total due each year.
In a RRIF, you are allowed to invest up to 100% of your investment funds in global investments, thereby increasing long-term growth of your investment and protection? You can also protect your investment against any future decrease in the value of our dollar. In addition, it is much more risky to leave all your money in one country.
Be sure to consult an independent professional adviser or to help you build your investment plan and review your plan at least once each year.

II. If you do not qualify for four of the sources of retirement income
You may want to use at least part of the RRSP funds to purchase an annuity as the foundation of your retirement income plan. This provides a guaranteed income to cover your needs minimum retirement income.


I hope this information helps. If you need more information, you can read the complete series of the above object to my home page:

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