Annuitant:
An individual who purchases an annuity and will receive payments
from that annuity.
Annuity: A series of regular periodic payments comprising
principal and interest. An annuity is a contract providing for
a series of payments. In the case of retirement, an annuity
is usually purchased from an insurance company who then pays
the purchaser a monthly amount while still alive. Annuities
may have more complicated features such as indexing, guarantee
periods and benefits payable to a spouse or other beneficiary
after death.
- Taken from
the Fiscal
Agents Financial Glossary |
When
an individual purchases an annuity, they usually pay a lump sum
from their RRSP, or other source of funds, to an insurer. The insurer
then takes this (premium) and divides by an annuity factor based
on mortality, current interest rates and payment features.
The
main reasons behind the purchase of an annuity are:
- Requiring
a simple and secure source of income,
- reducing
the ongoing investment decisions
Annuities
come with different options and types of registration. A "single
life" annuity provides determined income for the individual,
whereas "joint and last survivor" is designed to cover
two individual lives. Depending on who is the primary annuitant,
payments continue to the secondary annuitant. See our article Annuity
options explained.
When it comes to converting
your RRSP monies into income producing investments and planning
for the future, the sheer number of options between buying an annuity
and other type on income producing investment vehicles and opportunities
can become overwhelming. Their are Life annuities issued only by
Life insurance companies and as the name suggests, income will continued
for a life time. Long Term annuities as with life annuities are
a stable offing from the life insurance sector. Shorter term certain
annuities are also offend by banks and trust companies.
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Throughout our retirement
income sections, you'll find discussion on Annuities, Income
funds, and pensions. It's important to recognize not one solution
fits all. In fact, combining deferment products to suit particular
needs is sometimes the best option. As a First Step to smarter
choices, understand where the money is coming from. Utilizing
the planners and workbooks from our site's Financial Tools
you can quickly get your plan together. Start with the Cornerstone
Directory, then use the calculators to bring together
a summary overview of your finances. Your investment
advisor has 25
reasons to assist you in pulling this together!
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For
those who like to leave nothing to chance, the information on Incapacity:
Planning ahead helps and Structuring
an effective Will is ideal. Also, take a peek at the information
provided on Being an executor.
Finally, the Estate
Planning section can help you to determine and ensure that
you have not missed anything while bringing your affairs to order.
| To obtain
a clearer understanding about the particular terms involved
in Retirement Income planning, take a look at Fiscal Agents'
Glossary
of Retirement Terms. |
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Special
Glossary Of
Retirement Terms |
|
Many
options exist for those about to embark on this important time in
their lives. It pays to take the time to investigate all possibilities
to ensure that enough income will remain to provide a comfortable
lifestyle not only now but for the duration of your retirement.
| Annuities
explained |
 |
Entering
retirement calls for a review on how to make ends meet after receiving
a regular paycheck. For most saving enough money has been a common
goal and now that you've stopped working. For many selecting the
best possible income form the all the available retirement options
may be the most important of the investment decisions before you.
We suggest reading our article Life
time income solutions for you and yours.
Annuities,
like any other investment, are subject to tax. The taxation of annuities
will depend on the type of funds used to purchase the annuity, and
if the annuity was purchased on a tax deferred "prescribed"
basis.
Case
studies
| Featured
Reading on Annuities, RRIFs and the other ifs |
|
This must-read section brings together relative Annuity and RRIF information
you need to get started or enhance your understanding of the elements
of Retirement Income Planning.
Money Management Newsletter - Annuities
Other
Considerations
|
RRIFs
and other Ifs
The Companion Advisor
|
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|
Our Bookstore
section contains details related to books that we recommend
for various areas of investing. Also provided are links to ordering
information on each title from Chapters.Indigo.ca. |
Featured titles for Retirement Savings include:
| Annuity
Taxation |
|
Annuities
have been around hundreds of years, and though out time, have proven
an ideal financial product to bring balance or provide a total solution
to the retirement or income question. There are three basic type
of annuities, registered annuities and Prescribed and non-prescribed,
each subjected differently to taxation. Click
here to read an article describing these taxation methods.
| Annuity
and RRIF income pricing |
|
What your
savings earn -
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|
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Index
|
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Retirement
Income:
Annuities |
| Special
Section |
| Estate
Planning User's Guide |
|
Tips
& Guides
|
| Questions
and Answers - RRSPs |
| General investor tips |
|
Site
Resources
|
Special
Glossary of
Retirement Terms |
| Money
Management Newsletter: Retirement Income Planning |
| The
Companion Advisor: Retirement Planning |
IP-Profiler:
Retirement
We have also taken the opportunity to compile a reference
section for retirement-related investment products, known as
the IP-Profiler.
It provides a detailed look at the various products available
and contains information on deposit levels and applicable fees.
|
|
Calculators
& Worksheets
|
| Our collection
of retirement planning calculators and worksheets will also
come in handy for those interested in planning for the future.
Whether your retirement is 2 or 20 years away, it is never too
early to put a retirement plan into action. The calculators
listed below are a good start for understanding your retirement
goals, and setting in motion an effective plan towards meeting
them. |
This simple, 5-step
financial calculator is a direct adaptation of the comprehensive
worksheet found in the financial book The
Pension Puzzle. Using values you provide, an
investigation into your retirement income goals and the amount
of money you have saved to meet them will be performed, providing
results to illustrate any additional income you may require.
A report of the data entered can also be generated. |
Retirement
Savings & Income Calculator
Shows the regular RRSP contribution needed to achieve a
specific retirement income. |
| RRIF
Rates |
| 1
to 5 yrs RRIF Account |
| 10,
15 and 20 years RRIF Account |
| RRIF
Savings Accounts |
|
Online Quizzes
|
| Test
your knowledge of Retirement Options |
| Cornerstone
Planning |
|
Your investment
plan will alter and change just as you do, your needs and
goals also change as you age.
Fiscal
Agent's Cornerstone® Planning process addresses these
concerns and works with you to make sure that you are getting
the most out of your investment plan. We recognize that, regardless
of your age, it is never too late to start saving for your
financial future and retirement. Please review The
Milestones in your Financial Lifecycle.
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