An advanced life deferred annuity may be well-suited to more conservative clients seeking guaranteed income later in life, do-it-yourself investors and people who don’t have defined-benefit pension income.Financial professionals have another retirement planning tool at their disposal with the advanced life deferred annuity , which was introduced in this year’s federal budget.
Mr. Heath says an ALDA may be well-suited to more conservative clients seeking guaranteed income later in life as well as do-it-yourself investors who may wish to be less actively involved with their portfolios as they get older. The vehicle may also help people who don’t already have defined-benefit pension income.
Although the ALDA isn’t likely suited for the high-net-worth investors or those with a healthy DB pension plan, “for the average person, where there is a possibility they could run out of money in retirement … this is what you’d recommend," Mr. MacKenzie says. Financial advisors need to be careful in using an ALDA simply as a tool to minimize taxes in the near term, says Mr. Heath, as it could lead to higher taxes in the longer term. For instance, he says investors who defer too much income from their RRIFs to an ALDA may be in lower tax brackets in their 70s but in much higher tax brackets in their 80s than they would be if they hadn’t purchased an ALDA. “They may pay more lifetime taxes as a result,” he says.
Having a set income stream might also protect seniors susceptible to financial abuse because they won’t have the larger pot of money to hand over to fraudsters. “The money can’t be tampered with,” she says.
Source: Loan Digest (loandigest.net)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Two new measles cases confirmed in New Brunswick, bringing total to fiveAll of the cases are in the Saint John area and the latest two, confirmed late Saturday, are linked to a previous confirmed case at Kennebecasis Valley High School.
Source: globeandmail - 🏆 5. / 92 Read more »
Two new cases of measles confirmed in New Brunswick bringing total to fiveHealth officials in New Brunswick say there are two new cases of measles in the province, bringing the number of confirmed cases to five.
Source: CTVNews - 🏆 1. / 99 Read more »
Two new cases of measles confirmed in New Brunswick bringing total to fiveAll of the cases are in the Saint John area and the latest two, are linked to a previous confirmed case at Kennebecasis Valley High School
Source: nationalpost - 🏆 10. / 80 Read more »
Jim Balsillie : ‘Data is not the new oil – it’s the new plutonium’Lawmakers told technology is disrupting governance and if left unchecked could render liberal democracy obsolete Hey Jim, I’ve got a NHL team for sale if you’re interested. scmackintosh Exactly well put improper use of data can have explosive results.
Source: nationalpost - 🏆 10. / 80 Read more »
Jim Balsillie Asks Feds To Ban Targeted Online Election Ads“Data is not the new oil, it’s the new plutonium,” he said. Agree strongly with his views on social media.
Source: HuffPostCanada - 🏆 61. / 53 Read more »
Rescue dog program giving ex-prisoners new leash on lifeA California man who rescues dogs with special needs is training the animals to help rehabilitate criminals, and Canadian prison advocates are looking to adopt the program.
Source: CTVNews - 🏆 1. / 99 Read more »
Whitecaps looking to jump start offence vs. New York Red Bulls - Sportsnet.caAfter earning a point in stoppage time on the road last weekend, the Vancouver Whitecaps have another tough challenge on their hands when they visit the New York Red Bulls on Wednesday night.
Source: Sportsnet - 🏆 57. / 59 Read more »
CFL, CFLPA ratify new CBA that runs through 2021 season - Sportsnet.caThe CFL's board of governors and the CFL Players’ Association have ratified a three-year collective bargaining agreement that runs through the end of the 2021 season, the league announced Wednesday.
Source: Sportsnet - 🏆 57. / 59 Read more »
In Canada’s new economy, a no-limit talent pipeline is crucialThe need is for job-ready digital citizens, critical thinking and transferable skills in an evolving workplace
Source: globeandmail - 🏆 5. / 92 Read more »
Rick Hansen's new mission: Improving accessibility across CanadaWith an interactive new poster based on need, accessibility advocate Rick Hansen’s foundation is launching the ‘Everyone Everywhere’ campaign to raise awareness to improve physical accessibility for all Canadians.
Source: CTVNews - 🏆 1. / 99 Read more »