Retiring - And Enjoying It

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Solutions for Your Needs

Solution: Reviewing Your Financial Plan at Retirement
Richard and Mary-Louise* have entered a new stage of life and they’ve experienced some changes. They’re now on a fixed income, and their asset mix has changed since downsizing and buying a vacation condo in Florida. As a result, they’re more aware of their annual income taxes and wonder about the appropriateness of their current asset mix.

As requested, their Investment Advisor took the time to perform a comprehensive assessment of their current investment mix, and in the process determined that their primary investment objectives are income generation and preservation of capital (to ensure that something can be passed to their family). They have a relatively low tolerance for risk and are willing to include conservative equity investments in their investment portfolio.

With all this in mind, and given their investable assets, Richard and Mary-Louise have a variety of investment options available to them. Their Investment Advisor can recommend solutions that allow them to balance their competing needs for a high level of income, their overall risk tolerance, and tax efficiency.

For example, in terms of tax efficiency, their Investment Advisor may look at the discrepancy in income levels for Richard and Mary-Louise and suggest some common ways to minimize their tax liabilities, such as by splitting CPP benefits or establishing a spousal loan.

They’ll also want to address things such as the options for Richard’s RRSP (which will need to be converted next year when he turns 69) and the level of foreign content in their portfolio, of particular concern because of their plan to live in the U.S. for part of the year.

If you’ve entered a new stage of life and want to ensure that you’re aware of and addressing relevant investment concerns, contact a BMO Nesbitt Burns branch near you or complete our simple online request form to have an Investment Advisor contact you directly.

* Fictional characters. Any similarities between them and actual clients of BMO Nesbitt Burns Inc. are accidental.