Are You Retired and Have an RRSP?

September 29, 2017

You may be among the several thousand people in New Brunswick who have to make a decision and act on it before December 29, 2017.

When people who have invested in registered retirement savings plans (i.e. RRSPs) reach 71 years of age they have to either convert or collapse those plans. This conversion or collapse of an investor’s RRSP is required so the government can begin to collect tax on this tax-deferred pool of money.

There are really only three options RRSP investors have when they reach 71: 1) convert their RRSP to a registered retirement income fund (i.e. RRIF); 2) convert their RRSP to a life annuity; or 3)cash in the entire plan. Read More…

Dealing With Money Gets Harder As We Age

September 15, 2017

When it comes to the activities of daily life, financial matters are some of the most complex we deal with. A low level of financial literacy is a challenge Canada faces as a nation, and we are not alone in this. In the absence of sound financial capacity these complex decisions get made using emotions.

As we age we lose some mental capacity. Research indicates that a person’s financial abilities peak at age 53 and steadily decline thereafter. For those with dementia it’s even worse. Even mild dementia will result in significant impairment in financial capacity – particularly the most complex activities. Read More…