Putting Financial Advice in the Picture Retiring (Insert Advisor name) (Insert Company)

Putting Financial Advice in the Picture: Retiring What we will cover:  Lifestyle  Sources of income  Ways to control your costs  Be prepared for health issues  Tax issues  Estate planning (powers of attorney, wills)

Deciding on a retirement lifestyle  Where to live  Leisure activities  Working in retirement  Volunteering  Travel

Deciding on a retirement lifestyle  Where to live

Deciding on a retirement lifestyle  Where to live  Leisure activities

Deciding on a retirement lifestyle  Where to live  Leisure activities  Working in retirement

Deciding on a retirement lifestyle  Where to live  Leisure activities  Working in retirement  Volunteering  Travel

Travel and snowbirding  An opportunity to travel – the need to budget for this  Spending winters down south – health coverage in the U.S.

Travel and snowbirding  An opportunity to travel – the need to budget for this  Spending winters down south – health coverage in the U.S.

Travel and snowbirding You may have to file a U.S. return Substantial Presence Test Total of:  Days spent in U.S. this year  1/3 of days in U.S. last year  1/6 of days 2 years ago If total exceeds 182, you must file with the I.R.S.

Travel and snowbirding Owning U.S. real estate  Property taxes may be higher if not a permanent resident  If you rent, must file U.S. tax return  Withholding tax payable upon sale  Estate and gift taxes on death  Currency risk

Travel and snowbirding Cash and paying the bills  Set up U.S. bank account  Canadian banks in U.S. separate entities  Transfer money in U.S. dollars from home (ensure amount will be credited as soon as possible)  Debit card system different from ours

Funding your retirement  Government benefits  Registered assets (RRSP)  Employer pension plan  Non-registered assets  TFSA  Home equity (reverse mortgage)  Universal life policy

Government benefits  OAS  GIS  CPP/QPP Information and forms at: servicecanada.gc.ca

Government benefits  OAS  GIS  CPP/QPP New rules phased in between 2011 and 2015 Information and forms at: servicecanada.gc.ca

RRSP  Cash (deregister)  Purchased registered annuity  Transfer to RRIF

RRSP  Cash (deregister)  Purchased registered annuity  Transfer to RRIF

Pension plan  Which type of plan do you have? (def benefit or fed contribution)  Locking in  Taxation  How to receive payout  Annuity  LIF or LRIF

Pension plan  Which type of plan do you have? (def benefit or fed contribution)  Locking in  Taxation  How to receive payout  Annuity  LIF or LRIF

Non-registered assets  Your non-RRSP investment portfolio  Unlike RRSP assets, original capital not taxable  Dividend income, capital gains taxed at favourable rates compared to interest income  Get advice on how to use this money during retirement

Tax-Free Savings Account  What is a TFSA?  How much can you put in  Withdrawal rules (incl. taxation)

Access the equity in your home Reverse mortgage:  What it is, Who is eligible  How much can be borrowed  When must it be repaid?

Access the equity in your home Reverse mortgage:  What it is, Who is eligible  How much can be borrowed  When must it be repaid?

Reverse mortgages: two risks  Is interest rate competitive?  Repayment amount can be substantial

Leverage from universal life policy  What is UL and how can this provide income?  How can you access funds?  What are the risks?

Leverage from universal life policy  What is UL and how can this provide income?  How can you access funds?  What are the risks?

Create a realistic budget  Housing costs and utilities  Automobile  Groceries, toiletries, clothing and other living expenses  Entertainment and travel  Personal insurance  Loans and other debt-service costs  Don’t overlook seniors’ discounts

Why you need to consolidate your investments  Savings accounts  RRSP accounts  Mutual funds  Securities portfolios

Keep your tax bill down  Claim all credits and deductions on tax returns  Investment income  Income splitting  Spousal rollovers  Principal residence exemption  Life insurance to pay capital gains tax at death

Keep your tax bill down  Claim all credits and deductions on tax returns  Investment income  Income splitting  Spousal rollovers  Principal residence exemption  Life insurance to pay capital gains tax at death

Be prepared for health issues Review your health insurance coverage, including:  Government health plans  Group or individual coverage  Critical Illness Insurance  Long-Term Care Insurance

Health coverage  Government health plans  Group or individual coverage  Critical illness insurance  Long-term-care insurance

Health coverage  Government health plans  Group or individual coverage  Critical illness insurance  Long-term-care Insurance

Health coverage  Government health plans  Group or individual coverage  Critical illness insurance  Long-term-care Insurance

Health coverage  Government health plans  Group or individual coverage  Critical illness insurance  Long-term-care insurance

Powers of Attorney  POA for Property  POA for Personal Care Seek advice from a lawyer specializing in this area!

Power of attorney for property  Covers matters related to property and finances  Must be a “continuing” power of attorney  Pay bills  Sign documents  Buy and sell investments

Power of attorney for personal care  Hospice care  Change of physicians  Use of experimental treatments  Nutrition  Use of ‘heroic measures’ to prolong life

Wills  Must be valid and well structured  Complete a personal record keeper  Hire a competent lawyer

If you don’t have a Will … you die intestate Without a Will:  The court will appoint an executor  Assets will be distributed according to provincial law using a table of consanguinity, which determines the heirs  Spouse receives a preferential share  Remaining assets distributed per stirpes or per capita, depending on parent’s province of residence

Draft an unchallengeable Will  Obtain consensus  Use a qualified lawyer  Proof of mental capacity  Protect against claims of undue influence  Document gifts during life

Charitable donations  Donate while alive  Donate through the Will  Claim charitable tax credit

Putting Financial Advice in the Picture Retiring – Summary of key issues  Lifestyle  Sources of income  Ways to control your costs  Be prepared for health issues  Tax issues  Estate planning (powers of attorney, wills)

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