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Tax management essential for succession planning

For Horace and Belle, retirement planning is all about minimizing 
taxes and maximizing their investments

In a corner of southwest Manitoba, a couple we’ll call Horace, 65, and Belle, 62, are thinking about retiring in five years. They’d like to have a pre-tax income of $120,000 per year after they’ve left the farm. They also want to harvest $250,000 from the sale of their farm to finance the purchase of a house in town that they estimate would cost $250,000.

The situation

The suggestions

The outcome

  •  Horace’s CPP at $1,200 per month;
  •  Belle’s CPP at $720 per month;
  •  two Old Age Security benefits of $546 per month;
  •  two monthly RRIF payments of $800; and,
  •  monthly payments from non-registered investments totaling $6,400 for the couple, assuming a four per cent return from invested money.

Investments

About the author

Columnist

Andrew Allentuck’s book, “Cherished Fortune: Build Your Portfolio Like Your Own Business,” written with co-author Benoit Poliquin, was recently published by Dundurn Press.

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