“Nothing is certain but death and taxes.” That old saying – initially attributed to Benjamin Franklin – is truer than ever. But perhaps even worse than the prospect of death, in some clients’ minds, is the prospect of running out of money before getting there. Read on for a global perspective to help your clients ensure that their retirement stash lasts:
Pay less tax. With the April 30th tax deadline looming, David Hodges of MoneySense offers timely tax tips to help us all keep more money in our pockets, including an interesting way to circumvent Canada Revenue Agency’s superficial loss rule. And speaking of tax strategies, the federal government’s proposal to double the allowable TFSA contribution has been getting some bad press. In this Ottawa Citizen article, James Gordon makes the case that TFSAs aren’t just for the rich.
Work longer. Early retirement is becoming less common, not more, points out the Globe and Mail’s Ian McGugan. In fact, the average age of retirement rose two years between 2010 and 2014, probably due to the problem of funding it. McGugan explores just how much you’d have to boost your nest egg in order to retire at 55 compared to 65. If that argument is falling on deaf ears, pass on this Newsweek article that makes the case that retiring too early takes a toll on physical and emotional health.
Invest wisely. Kiplinger’s Steven Goldberg contends that the markets are way ahead of investors when it comes to digesting the impact of geopolitical turmoil on equities. Rather than letting bad news drive your investing, he points to valuations as a more powerful tool for predicting performance.
Insure against longevity. In “Live Long and Prosper?” John F. Wasik of the New York Times explains the pros and cons of longevity insurance (or deferred income annuities) for those who fear outliving their nest egg. For those retirees who’d like to create their own annuity by simply investing conservatively and keeping expenses low, this Walter Updegrave article from CNNMoney makes the case that creating income for life isn’t as easy as it may seem.