Annuities
One of the main advantages of an annuity is that it pays a guaranteed income for as long as you live. This can also be a disadvantage as well. The amount you receive is based on your age, health, amount of money in your RSP, and prevailing interest rates. Therefore, with a straight Life annuity, although this income ends when you do, it also generates the greatest amount of income. In order to ensure that your beneficiaries receive adequate value for the amount of capital you exchange for the Annuity, you can have payments guaranteed to continue for a minimum number of years, such as 10 or 15. You may also elect to have payments continue in part or in whole to a spouse. The “catch” is, for each “restriction” you put on the terms, your income from the annuity deceases.
Although annuities have fallen out of vogue over the past few years, we feel that they can offer significant benefits for clients seeking security in this insecure world. In light of recent bear markets, we have developed programs that make these a viable choice in combination with other innovative financial products. We offer creative pension maximization solutions for clients considering this option. And, by shopping the marketplace (as rates vary significantly) we can guarantee cost effective terms for these clients.
If you have experienced significant health problems in the past, we may even be able to leverage this to enhance your income payments.
Annuities are also options to consider if you are retiring from a Money Purchase Pension Plan.
Once again, we shop the marketplace for our clients to ensure that their RRIF or LIF plans are the most competitive in terms of features, options, and investment choices. Our goal during this period is to maximize our clients’ income and to minimize their taxes.
It is important to remember that one of the potential problems with any Annuity is that there is a good possibility that you and/or your spouse may run out of money before you run out of life! Finally, we have a solution that enables us to help you take that risk off the table. Now for the first time in Canada, we now have a product specifically designed to provide you with a fully guaranteed income during retirement – no matter what happens to markets! And no matter how long you live! From a higher perspective, this is just like a pension plan. And, this same product also offers you unlimited upside potential, enabling you to fully participate in the growth your investments earn in the marketplace, which means you are still in control of your money. IncomePlus can provide you with:
- Predictable income guaranteed not to decrease no matter how investments perform*
- Sustainable income that will last for life or at least until the principal is completely repaid*
- Potentially increasing guaranteed income to help offset inflation
- The flexibility to change your investment or access your savings at any time
- Tax-efficient income when held in a non-registered account
- Benefits that ensure the smooth transition of your estate
- Potential creditor protection
Follow this link for a brief overview: www.manulifeincomeplus.ca
Be sure to contact us today to ensure your retirement is guaranteed for your lifetime or for more details or to schedule a meeting to discuss your Annuity options.