The Importance of Comparing Withdrawal Strategies
Cascades focus is to illustrate the value of advice by revealing the tax difference of competing withdrawl strategies. In some cases the differences are very significant..
Retirement Income Snapshots
Cascades will take into consideration all sources of income entered and provide detailed breakdowns of both gross income and the disposable income left over after clawbacks, savings and income taxes.
Retirement Income Summaries
Cascades provides a detailed and practical roadmap showing which incomes need to be taken to make up your total income, and when they should be taken.
Cascades goes one step further by analyzing the data of each unique clients to point out key planning considerations that warrant further investigation...
Income Splitting & Pension Credits
When choosing your options to leave your employer-sponsored pension plan, some options will allow you to receive a $2,000 pension tax credit each year before 65 that otherwise isn't available. Consider this benefit when deciding to commute out of a pension plan.
Manage Sequence of Returns Risk
When withdrawing funds on a regular basis for retirement income, the order (or the "sequence") in which you receive your investment returns can make a significant difference in how long that income lasts. Protect yourself by reviewing the proportion of fixed income that makes your retirement income, and consider the value that deferred/variable annuities (aka "segregated funds") provide with their death benefit and maturity guarantees.
Because of high taxable income levels, we project that you will be required to re-pay some of your Old Age Security benefit to the government, known informally as the "OAS clawback." An OAS Clawback situation involves one of the highest effective marginal tax rates experienced by Canadians. Consider reducing the amount of income taken from registered investments over other vehicles and consider investing for capital gains over dividends to reduce your clawback.