News Releases

Local investment experts from BMO Mutual Funds available to provide Canadians with tips to meet December 31^st deadline

WHY:            

By law, Canadians must choose a retirement income option for their Retirement Savings Plan (RSP) by December 31^st of the year they turn 69 years-old.

If you withdraw cash from your RSP, the total amount is fully taxed, which means you could potentially lose as much as half of what you have accumulated to taxes.  To continue deferring tax, you must convert your RSP into an annuity and/or Retirement Income Fund (RIF).

As Canada's population ages, more Canadians will be looking for tax-efficient ways to manage and access their retirement savings.

WHAT:

A RIF is one of the most flexible vehicles for retirement.  It is an investment plan for tax deferral similar to an RSP, except it provides you with income for your retirement years, rather than you having to make contributions to the plan. 

Key benefits of a RIF:

�         Gives you control over how your money is invested

�         Investments continue to grow tax-sheltered until the money is withdrawn, at which point it is taxed as income.

WHO:

BMO Mutual Funds has national and local experts who can provide advice about meeting the December 31^st deadline and explain the advantages of converting RSPs to RIFs.  Other discussion topics include:

�         Why RSPs need to be converted into RIFs

�         The RIF check-list – what you need to do to prepare to switch yourRSPs into RIFs

�         Other income options in retirement

�         Setting up flexible withdrawal options that meet your lifestyle needs

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