News Releases
In response to the growing need for retirees to generate a monthly income from their retirement savings and investments, BMO Nesbitt Burns today announced the launch of its Access Service Retirement Income Management Account (RIMA). With RIMA, all sources of retirement income – including Canada Pension Plan, Registered Retirement Income Funds, company pension plans, annuities and earned income – can be automatically deposited into a single account, from which clients can draw a monthly paycheque and manage their expenses.
“With so many different sources of retirement income, investments and expenses to manage, transitioning to retirement can be overwhelming for many people,” said Sarah Widmeyer, Senior Vice President and Managing Director, BMO Nesbitt Burns. “Yet planning for regular income in retirement is as important to financial success as it is to accumulate your retirement nest egg.”
“Since most people are used to having a steady stream of income during their working years, having a single account that automatically consolidates all sources of retirement income and provides a regular paycheque will help clients bridge the gap between their working life and retirement,” added Widmeyer.
RIMA's key features include:
� Consolidation of all sources of income and assets into a single (personal or joint) account
� Income sources may include any of the following: Canada Pension Plan (CPP), Registered Retirement Income Fund (RRIF), earned income, company pension plans, annuities, RRIF Payments, individual securities, fixed income, mutual funds, dividends, interest and cash
� Seamless consolidation of investment assets with a BMO Bank of
� A monthly budget and cash flow strategy, including a financial needs assessment tool to help in the formation and implementation of a retirement income plan
� Unlimited no-fee BMO Bank of Montreal ABM use and no-charge daily banking, including online and telephone banking.
“The industry has traditionally worked with investors towards a yearly income stream goal or a lump sum dollar amount when it comes to retirement planning,” said Widmeyer. “BMO's retirement research shows the average investor actually looks at retirement income from a monthly perspective.* We've responded with a solution that will make it easier for investors to achieve a regular monthly income stream.”
BMO Nesbitt Burns Investment Advisors will work with their clients to set up a Retirement Investment Management Account and help them determine their day-to-day income needs. The service is available at no cost to clients who hold $250,000 in retirement assets at BMO Nesbitt Burns.
About BMO Nesbitt Burns
BMO Nesbitt Burns is BMO Financial Group's full service investment advisory firm and is part of BMO's Private Client Group. The Private Client Group provides integrated wealth management services in
*The BMO Retirement Trends Study, the most comprehensive survey on Canadian retirement compiled to date, was conducted for BMO Financial Group by Ipsos Reid. It canvassed 5,325 Canadian financial decision-makers 45 and over from October 21 to October 27, 2005.
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