Make Plans for Longer Retirement

Summary


"Our clients are getting older," says Robin Muir, of Hatch & Muir Investment in Victoria B.C., a firm that specializes in advising retirees. "The 69 of today was the 55 of 20 years ago. The concern they have is that they'll exhaust their capital."

"It doesn't make a lot of sense to cash it in an take the money," says Muir, because the whole amount immediately becomes taxable. "If you're taking out $200,000, you could be giving away 44 per cent in taxes."

"At one point we couldn't think twice about recommending an annuity," to a senior closing an RRSP. But with life expectancy going up "now I recommend that to people in their late 70s, not their 60s."

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Extract


Make Plans for Longer Retirement

Time is on seniors' side... much more time

By Sharon Adams

SENIORS turning 69 have much more to think about than i...

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