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| Vicarious Retirement
Living Takes Planning |
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(NC) The traditional image of Canadian retirees living
relatively sedentary lives in small retirement communities
across North America is quickly being replaced by adrenaline
seeking fifty and sixty something's marching through foreign
streets with sleek designer bags and wallets stuffed thick
with plastic.
This is the new retirement reality. Unlike their parents'
generation, today's boomers are much more transient, moving
frequently between careers and leisure activities in search
of self-fulfillment. Yet, many challenges lie ahead - from
caring for their parents to having financial security
throughout a longer life span. Without sufficient planning,
this group's lifestyle priorities could be knocked-off
course.
"According to Statistics Canada's Canadian Population
Estimate Table*, by 2015 it is projected that approximately
forty per cent of Canadians will be over the age of 50,"
says Linda Knight, Vice President, BMO Mutual Funds. "With
such a large proportion of the population heading into
retirement, the need to preserve boomers' lifestyles will
become even more urgent."
What is this demographic to do?
Boomers focused on securing their lifestyles well into the
future should access the advice and financial planning
expertise of an investment professional. Major banks, such
as BMO Bank of Montreal, offer qualified investment advice,
at no cost, in bank branches across the country.
For those looking to support their income requirements in
retirement, the more pressing issue is converting their RRSP
into an appropriate retirement income plan. By law, RRSPs
must be converted to a retirement income option by the end
of the year an investor turns 69. A Registered Retirement
Income Fund (RRIF) is one of the most popular retirement
income options and can be opened before age 69.
"Think of a RRIF as reaping the benefits of your RRSP.
You've spent years planning for your retirement by investing
in your RRSP and now that you've stopped working it's time
to start accessing your savings," said Knight.
A RRIF provides investors with a regular source of income
generated from the savings in their RRSP account.
With a RRIF, investors must take income annually beginning
no later than the year after the program was set-up. For
example, if you converted an RRSP to a RRIF in 2004, you
must begin to receive income no later than the end of 2005.
"Retirement planning, like health and wellness, takes
discipline and foresight, but the reward is often the
fulfillment of your lifestyle goals," said Knight.
Information provided by BMO Retail Investments. For more
information visit your nearest BMO Bank of Montreal branch
or log on to www.bmo.com/ investments.
News Canada
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