Test Your Knowledge: Top Ten Retirement Questions

What’s a qualified tax efficient retirement income planner worth? A lot, it turns out, especially to clients who want to more effectively build net worth for retirement, but also to those who are frustrated with high taxes on their pension income and the lack of freedom that comes with eroded purchasing power on their savings.  

Are they willing to pay for advice on structuring their affairs? Yes, but only if you are ready to answer their top ten questions, says Alan Rowell, MFA, DFA-Tax Services Specialist, a guest speaker at the Distinguished Advisor Workshops on Retirement and Estate Planning starting this week across Canada. “You will want to test and consolidate your knowledge, then review your revenues from retirement income planning. You might be missing a lucrative opportunity to serve your clients now til the end of the year.”

Consider the following Top Twelve Retirement Questions:

1. Should I sacrifice my RRSP contribution and make a TFSA contribution instead?
2. Should I pay off my mortgage before making any more retirement savings plans?
3. What is the real dollar cost – after taxes – of taking benefits from my CPP early or delaying them in favor of redeeming other assets?
4. What is the real after-tax dollar value of splitting my CPP with my spouse? 
5. What are the implications if my spouse takes CPP benefits early and I defer my benefits?
6. How can we plan most effectively if my spouse has a defined benefit pension plan and I don’t?
7. How much should I have in my RRSP before I may have too much?
8. Should I redeem any RRSP accumulations prior to age 71 if I retire at an earlier age?
9. What is the future value in my registered and non-registered savings at different rates of return and marginal tax rates?
10. What tax bracket should I plan to stay in when withdrawing income in retirement?
11. Assuming I wish to travel in the first 10 years of my retirement, how much should I invest on an annual basis at current rates of return if I need $1 million in retirement?
12. If I would like to have a minimum of $500K left in my estate after both my spouse and I pass what should I contribute going forward?

The answers will be discussed and reported on this week. To participate consider joining top advisors from across Canada at the Retirement and Estate Planning workshops. For more information, call 1-866-953-4769 or register online.