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Polson Bourbonniere Financial
Planning Group Inc.*
Dundee Securities Corporation
100 - 7050 Woodbine Ave.
Markham, Ontario L3R 4G8
Tel: 416.498.6181 or 905.413.7700
Toll Free: 1.800.263.0120
Fax: 905.305.0885 info@pbfinancial.com
www.worryfreeretirement.com
Ruth Ashton, CFP®
Investment Advisor
Certified Financial Planner
Phone: (905) 413-7710 rashton@pbfinancial.com
Paul Bourbonniere, CFP®, CLU, CH.F.C.
Investment Advisor
Certified Financial Planner
Phone: (416) 498-6181 pbourbonniere@pbfinancial.com
Lydia Bzowej, BA, CFP®, EPC Investment Advisor
Certified Financial Planner
Phone: (905) 413-7703 lbzowej@pbfinancial.com
Allan Kalin, CFP®
Investment Advisor
Certified Financial Planner
Phone: (905) 413-7706 akalin@pbfinancial.com
Derek Polson
Investment Advisor
Phone: (905) 413-7709 dpolson@pbfinancial.com
Kirk Polson, CFP®, CLU, CH.F.C.
Investment Advisor
Certified Financial Planner
Phone: (416) 498-6181 kpolson@pbfinancial.com
Office Hours
Monday to Friday,
8:30 a.m. - 5:00 p.m. |
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  Registered Retirement Income Funds (RRIFs) are the most popular RRSP maturity option, the other two being annuities and lump sum withdrawals. The RRIF was invented to provide flexibility and control to the RRSP owner, so it may come as a surprise to readers that the RRIF’s lack of flexibility in today’s economic environment is resulting in calls for changes to the way Canadians create retirement income from their maturing RRSP.
RRIFs have 3 main purposes. The first is to create regular income that hopefully will not be outlived. The second is to give planholders control over their capital and how it is invested. Finally, it is the vehicle through which the government recovers its deferred tax revenue. This last point is of particular importance since the advent of the OAS ‘clawback’ tax, which can place seniors in an unexpectedly high tax bracket. It is also because of this tax issue that RRIFs fail as an effective estate planning tool.
 As you are aware, we at Polson Bourbonniere Financial are big fans of the new (2009) Tax Free Savings Account (TFSA). The main reason is a simple one – eliminating all income tax on any growth means significantly higher accumulation down the road. For those over 65, lower taxable investment income can help reduce potential exposure to the OAS ‘Clawback’. There are other provisions of the TFSA that make it ideal for short and medium term saving as well.
As you know, we continually look for ways to ensure that we can help you reach all your financial goals, and save you money! Recognizing that our specialty is financial planning, and knowing that a complete wealth plan goes beyond just this element, we have forged a unique partnership with Dundee Mortgage Services, Powered by Invis.
The deadline for RSP contributions for the 2009 income tax year is Monday, March 1, 2010. The 2009 RRSP annual contribution maximum is 18% of earned income, up to a maximum of $21,000. Your 2008 Notice of Assessment will reflect how much you are eligible to contribute.
If your net income for 2009 exceeds $66,335 then your OAS benefits will be clawed back and you will have to pay back part, or all, of your pension. In addition, your pension for 2010 will be reduced by the same amount.
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