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 The
Money Management Newsletter: Managing
Money
Investment planning throughout the life-cycles:
ABCs & 123's
Ages 61-70:
Retirement's on the doorstep
By the Money Management Editor
Money Management Newsletter
You may decide that working part-time, starting a home based business
or pursuing other outside interests or activities as ways to ease yourself
into retirement. The success of such goals grows out off careful planning.
Taking evening educational classes such as small business management or
financial management will give you a head start in any endeavor.
Pointers:
Your RRSP must be converted to a retirement income option prior to year-end
at age 69. RRIFs are the most popular conversion choice from regular RRSPs,
while LIFs and LRIFs are main option of choice for conversion from locked-in
RRSPs. Fixed-term and Life Annuities are also viable options. You can
continue to contribute to your RRSP until the end of the year that you
turn 69, reducing any taxes from earned income. If you have a younger
spouse, spousal RRSP contributions until he/she turns 69 are still an
option provided you will have earned income or unused contribution room.
Use the younger spouse's age to determine the RRIF payment schedule and
elect the minimum payment option, if you want the most tax-deferred growth.
Review the differences of LIFs and LRIFs for any locked-in RRSPs and
decide which is the better option for you. You can convert from one type
to the other if needed.
Reduce the overall risk of your portfolio. You may be in a transition
stage as you move from employment to retirement and your investments may
need to be geared more towards income and less towards growth.
Put your house in order: Review your estate plan and Will, ascertaining
possible conflicting estate obligations, clearly defined beneficiaries
noted, and that sufficient funding will be in place to meet your bequests
and any final taxes.
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, Fiscal Agents Money Management Newsletter
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