web site deals with the implications of taking the Commuted Value out of
a pension plan. Clearly the bigger decision you are making is the decision
to retire in the first place. One thing you should understand is that you
are only one corporate bankruptcy away from your pension changing, whether
you like it or not. This sounds like fear-mongering, until you examine
what has happened to a number of plans in the last few years. Most Defined
Benefit members figure their pension is immune to these occurrences, even
if their employer is having difficult financial times. If your plan is
government funded it probably is safe. If not, you are not. Look at Air
Canada, or Stelco. If you haven't, we can help.
ability to retire early depends in large part on the financial resources
available to you and your family to cover future needs. Your pension is
a significant part of those resources but you will have the CPP, OAS as
well as income from other investments if any. You may also be planning
to work after retirement. You should take a close look at all your sources
of income and how they compare with total projected living costs, including
taxes. Do this essential exercise before you make the decision to retire,
not after. Buy a book on the subject and, if you feel it necessary, get
some financial planning help. If you do the latter, though, do your best
to assess that you are getting advice that you feel places your needs first.
This is especially so if your planner makes a commission on the management
of your funds. What you have just been told is about as honest as it gets.
links page has helpful sites for retirement planning and tools that we
have reviewed. Some effort at doing your own site searches is time well
Value pension deserves a great deal of thought for a number of reasons
that do not apply to simple retirement and a service pension. You must
understand, if you have a Defined Benefit plan, your Commute decision is
probably the most important financial decision you will make in
your lifetime. Knowing the risks and rewards, how they mesh with your anticipated
future lifestyle and, upon acquiring this information, how your anticipation's
may change, is important information. For those seriously considering their
CV option we provide detailed analysis aimed at your specific situation
so that you can see how your funds will provide for you and your beneficiaries.
For further information and fees please E-mail to firstname.lastname@example.org
or call Bill Gates at Armquest 905-855-8899.
I draw the same amount as my pension and not run out of money?
The aim of Armquest's investment plan is to provide a steady income flow
that will match your pension income and still leave an estate for your
my spouse draw a pension, should I die prematurely?
You can make provisions for your spouse to continue drawing the same amount
safe is the money?
There are two key concerns: that the capital is safe, and that there will
be enough to last your lifetime. Armquest is experienced in managing pension
moneys and works closely with some of the best fund managers in the business.
They select a fully diversified portfolio of securities to create returns
that will provide cash flow while, at the same time, providing a high level
of capital preservation.
I sleep nights or do I need to worry about my future income?
Different people have different priorities and risk tolerance. Before we
make a recommendation, we meet with you to hear about your chief concerns,
both in terms of risk tolerance and lifestyle. Together, we choose the
level of risk that will be comfortable to you, while still meeting your
obligations and lifestyle. In a word, you sleep nights!
will this cost me?
We keep our fees competitive, which is to say, lower than many mutual funds.
The idea is to preserve your capital for you and your family.
like to know what is happening to my money. Will you keep me informed?
One of Armquest's services is to do periodic reviews, using our specially
designed Withdrawal and Scenario calculators, to make sure your CV pension
is on long term track, and to advise how to correct it if it has encountered
a 'bump'. You also receive regular reports from the managers we select.
to ask, but how safe is my money?
All moneys are held in trust by a custodian, usually a bank. The custodian
can vary, depending on the fund manager(s) selected. A custodian handles
all the money and securities transactions. In other words, your money goes
directly into the hands of the custodians, held in trust for you, and is
invested on your behalf by the manager(s). The custodian also handles all
the payments going to you and pay our fees on your behalf. The custodians
produce their own independent reports, not only to you, but also to the
Government agencies that control these matters.
income tax time, do I have complicated forms to fill?
The custodian will provide you with the necessary T2 slips, much as your
pension plan would.
How do I arrange to meet with you?
Call us at (905) 855-8899 for an appointment. If you prefer, just click
the button CONTACT US to arrange a convenient meeting time. If you live
out of Toronto, click the What’s New button to check
our seminar schedule, or call us to see what can be arranged.
it very complicated to commute?
No. We give you complete assistance with all the paperwork and communications
with your Human Resources department, at no additional cost.
I lose money if I commute?
Armquest's personnel regularly review your portfolio returns and perform
their own calculation of what you should be receiving to ensure that you
stay on track with the long-term plan. We will show you under what
conditions you can run out of money and steps you should take to guard
are the advantages of commuting?
first advantage is that you keep a measure of control over your
money. For instance, unlike a pension, if you don't like the way your
fund is performing, you can transfer it elsewhere. Another advantage
that the plan is tailor-made to your particular preferences; this means
that you can change your mind down the line, if your life style
changes or if your risk tolerance changes. (We can make specific comparisons
when you come to see us and give us more particulars on what you want out
of your pension.) There is also the advantage that your spouse can
continue to draw the same amount in the event of premature death. Finally,
capital preservation so that you can leave an inheritance is also
a great advantage to most retirees.