Nilson/TRIVEST - Insight Past Articles

Income split as much as possible, bearing in mind the marginal tax rate scale
Organize your savings plan today for long term income splitting in retirement
Make sure you have prepared your wills
Have the higher tax bracket spouse do the spending and lower bracket spouse do the saving
Remember that your retirement savings obligations aren't finished when you make the annual RRSP contribution. So, manage your investment strategy wisely. Over a life time, the investment returns will contribute far more to your retirement life style than your savings contributions.
Coordinate the investment strategies of your portfolios to contribute to long term income splitting, including principles of tax-smart investing
Use spousal RRSP contributions to contribute to long term income splitting
Avoid non-sensical tax deductions, like various tax shelters
Dedicate time to tax and financial planning regularly
Pay down non deductible debt first
Review the adequacy and need for life, disability and critical illness insurance coverage for both of you over your working lives
If you start saving late in life, don't pursue a "home run" risky investment strategy to try to catch up lost ground
Start education funds for your kids and invest them sensibly for long term growth
Create a forced savings plan to secure the saving discipline
Review the success and strategy of your portfolio at least annually

Map out your incremental cash flows year-by-year until full maturity of all of your retirement incomes (usually age 70)
Compare these incomes at various ages to your cash needs in early, mid and late retirement
If there is a shortfall at any point(s), consider different ways to bridge the gap
- Elect into early CPP for either or both of you
- Draw down your non-sheltered investment capital before drawing on your RRSPs
- Withdraw lump sums from your RRSPs
- Work part time
- Convert non-productive assets, like a recreational property, into cash and investment income
- Consider the wisdom of converting your house asset into cash flow with a reverse mortgage
Carefully consider your employer's pension income options when you retire with respect to last survivor options
Try not to touch your RRSP until you are required to at age 70
Elect the younger spouse's age to determine your minimum RRIF payments
Split your CPP entitlements to improve income splitting
If you sell your home, or trade down to a smaller one, have the excess proceeds invested by the lower income spouse
If you own an unproductive asset, like a cottage, arrange that the higher income spouse owns it
If you have money to spare, consider helping your children with house acquisition, their RRSP contributions or education plans for their children