Book Ways to Wreck / Rescue Your Retirement - Tina Di Vito
Retire Richly. Retirement Finances. 52 Ways to Wreck Your Retirement - And How to Rescue It. Tina Di Vito. Life Buoy Ring on Rocks.
‘52 Ways to Wreck Your Retirement - And How to Rescue It’ by Tina Di Vito provides a comprehensive guide identifying common mistakes Canadians make in their retirement planning and retirement age expectations. Di Vito provides practical strategies to avoid or fix them and so rescue retirement finances. Di Vito is a Chartered Accountant, Certified Financial Planner, and Trust and Estate Practitioner with over 20 years of experience in helping Canadians plan for and live in retirement. Di Vito notes that she is constantly hearing that Canadians haven't saved enough money; lack sufficient retirement portfolio; have modest pension income; aren't prepared for retirement; expect retirement age that is unrealistic for their situation, or believe they will never be able to retire. The core idea is that retirement planning involves a "living document" consisting of two phases: the saving phase (focused on accumulating enough money) and the spending phase (focused on asset decumulation and making the money last).
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52 WAYS TO WRECK YOUR RETIREMENT – PREPARE A RETIREMENT PLAN AND SEEK PROFESSIONAL HELP
You Need a Retirement Plan and Must Know Your Financial Picture. Know where you stand today to plan for tomorrow. The book stresses that many Canadians haven't saved enough money and lack a proper retirement plan. Retirement planning involves both saving to retirement and managing money during retirement. It's crucial to understand what retirement means for you, including when you might retire and how you'll spend your time. A key starting point is creating a personal net worth statement to see what you own versus what you owe. Tracking where your money goes is also essential, helping you budget and understand your spending habits for both now and retirement. Having a plan allows you to visualize your desired retirement and provides a roadmap to fund it. It's highlighted that it's never too late to engage in retirement planning.
Invest Smartly and Understand the Risks. Investing doesn't stop just because you retire; it's crucial for retirement savings to continue to grow. The book cautions against putting all your investment eggs in one basket, noting that owning many funds might not mean true diversification if they hold the same assets. Understanding how your money is invested and your personal risk tolerance is essential, as we often overestimate our comfort with risk. Retirees are particularly sensitive to investment losses. Be wary of opportunities that sound too good to be true. Protecting your accumulated wealth from fraud and scams is also a top priority. Ignoring investment risks can significantly impact your retirement.
Don't Be Afraid to Seek Professional Help. While a do-it-yourself approach to retirement planning is tempting, especially with online tools, the book suggests it can lead you in the wrong direction because you may not know what you don't know. Retirement calculators provide useful snapshots or "what if" scenarios but oversimplify, rely on assumptions, and cannot replace professional advice. They miss crucial personal circumstances. Qualified financial advisors can help identify problems, provide objective strategies for building and protecting wealth, and offer comprehensive planning that leads to greater peace of mind. Working with a team of experts can be beneficial.
“Canadians haven’t saved enough money”
“it’s never too late to engage in retirement planning”
52 WAYS TO WRECK YOUR RETIREMENT OUTLINES DIVERSE TOPICS ON RETIREMENT FINANCES
Thinking You Have a Plan When You Don't: Many people mistakenly believe they are prepared simply because they contribute to an RRSP or company pension. A real plan involves understanding your financial situation, estimating needs, identifying gaps, and building a comprehensive strategy encompassing both lifestyle and finances.
Not Knowing Where You Stand (Net Worth): A crucial starting point is understanding your net worth – the difference between your assets and liabilities. This provides a snapshot of your current financial health and helps in making future decisions and projections. Every financial decision, even seemingly small ones like buying a daily coffee, impacts your net worth over time.
Not Knowing Where Your Money Is Going (Budgeting): Few people track their spending or use a budget. Understanding your spending habits is essential to avoid overspending and manage cash flow, both before and during retirement. The book uses a hierarchy of spending (basic needs, discretionary, luxury) to help visualize where adjustments can be made if needed.
Mismanaging Debt: The book clearly distinguishes between "good" debt (borrowing for assets that increase in value or where interest is tax-deductible, like a home or certain investments) and "bad" debt (borrowing for depreciating assets or carrying high-interest balances).
Mortgages: Taking too long to pay off your mortgage is a pitfall. Paying it off faster frees up cash for saving and improves net worth. The book advises against treating your home equity like an ATM.
Credit Cards: Using credit cards as long-term loans is dangerous due to high interest rates. Carrying a balance, especially only making minimum payments, results in massive interest charges over many years. The book strongly advises paying off balances, starting with the highest interest rate card.
Making Investment Mistakes: Beyond understanding risk tolerance, other pitfalls exist.
Being Too Conservative: Thinking you're safe by avoiding risk entirely can be detrimental, as investments may not keep pace with inflation, the "silent investment killer". Growth is needed for longer time horizons.
Lack of Diversification: Putting all eggs in one basket increases risk [implied from the concept of diversification]. Not knowing the underlying holdings of investments can lead to a false sense of diversification [implied from discussion of mutual funds and diversification].
Stopping Investing at Retirement: Retirement can last for decades, meaning savings still need to grow [implied from discussion of investment policy statement in retirement and dividing portfolio by time horizon].
Seeking a "Magic Pill": Trying to achieve savings goals by taking on excessive risk late in the game is dangerous. Growth depends on time, contributions, and rate of return, with increasing contributions being a controllable factor [implied from 55].
Paying Too Much Tax: Taxes reduce the money available, both before and during retirement.
OAS Clawback: The Old Age Security (OAS) pension is taxable income and can be clawed back if net income exceeds a certain threshold. Strategies may be needed to minimize income in retirement to preserve this benefit.
Not Using TFSAs: Tax-Free Savings Accounts allow tax-free investment income and withdrawals, which do not affect taxable income or OAS entitlement, offering flexibility and tax advantages unique in Canada compared to RRSPs/RRIFs [implied from chapter focus and general TFSA knowledge].
Choosing the Wrong Beneficiary: Improper beneficiary designations on registered plans can lead to unnecessary taxes or probate fees and may not align with estate wishes.
Lifestyle and Psychological Adjustments in Retirement: Retirement isn't just about finances; it's a major life transition.
Making Too Many Big Changes Too Soon: Rushing into entirely new activities or drastically changing your lifestyle immediately upon retirement can lead to disappointment if they don out to be what you hoped.
Defining Yourself by Work: Losing your professional identity or feeling a "loss of stature" can be challenging if your self-worth was tied to your job.
Not Planning Daily Life: Hoping that retirement is just a "very long vacation" of leisure activities is often unrealistic. Planning for day-to-day life beyond initial travel or hobbies is important.
Moving to the Cottage: While appealing, moving permanently to a vacation property may lead to isolation or lack of amenities compared to city living.
Starting a Business: Many over 55 start businesses, but this requires significant research, skills, capital, and time commitment, and carries financial risk that could impact retirement savings.
Failing to Discuss Retirement with a Partner: Different retirement dreams between partners can lead to conflict if not discussed openly.
Being Afraid to Spend Savings: After years of saving, some retirees are hesitant to actually spend their accumulated funds, potentially leading to a meager lifestyle despite having sufficient resources. Strategies like planned withdrawal rates or annuities can help manage this fear.
Avoiding Professional Help: Many attempt to manage their retirement planning themselves, often without realizing what they don't know. Financial advisors can provide objective guidance, comprehensive planning, and peace of mind.
Substituting Calculators for Advice: While online calculators offer a quick snapshot, they are based on assumptions that may not be realistic and often oversimplify the complex, interconnected aspects of a full retirement plan, lacking personalized advice.
PERSPECTIVE OF TINA DI VITO, AUTHOR 52 WAYS TO WRECK YOUR RETIREMENT AND HOW TO RESCUE IT
Tina Di Vito's background heavily influences the book's content and approach. As a seasoned financial professional (CA, CFP, TEP) with over two decades of experience working with Canadians on retirement planning and living, she brings a wealth of practical knowledge. Her role as Head of the BMO Retirement Institute, where she leads strategies and research, suggests her insights are informed by broader trends and common issues observed across the population.
The book is explicitly stated to be a result of those retirement planning conversations and based on some of the most common mistakes she has encountered. This grounds the book in real-world challenges and relatable experiences. Her perspective is one of wanting to arm Canadians with the tools they need to better manage their financial and personal retirement aspects and helping them transition with confidence and clarity. She adopts an accessible style, acknowledging that personal finance can be daunting and even attempting to reframe the word "retirement" itself due to its often negative connotations, though ultimately using it for familiarity. She emphasizes going "back to basics" and using "common sense" money management strategies.
“don’t put all of your investment eggs in one basket”
“protect what you’ve accumulated”
52 WAYS TO WRECK YOUR RETIREMENT COVERS DIVERSE TOPICS, WITH A CANADIAN FOCUS
Comprehensive Coverage: The book addresses a wide array of topics essential to retirement, ranging from foundational elements like net worth and budgeting to complex areas like investing, debt management, tax optimization, pension types, estate planning, and protecting against fraud. It covers both the financial and critical lifestyle/psychological aspects.
Practical and Actionable: Each chapter identifies a specific mistake and provides "rescue it!" strategies, often including concrete steps or lists of things to consider or do. The 52-chapter structure itself is a strength, designed to break down a large task into manageable weekly actions.
Relatable and Empathetic Tone: By framing the content around common mistakes and shared feelings like the fear of not saving enough, procrastination, or the psychological shift needed for retirement, the author makes the material accessible and non-judgmental. The examples used, like the cost of a daily coffee over time or the impact of minimum credit card payments, are practical and illustrate the concepts effectively.
Focus on Canadian Context: The book is specifically written for Canadians, addressing Canadian-specific aspects like RRSPs/RRIFs, TFSAs, CPP/QPP, OAS, and provincial intestacy rules. This is a significant strength for the target audience.
Clear Explanations: Complex financial concepts, such as net worth, inflation, different pension types, and the tax treatment of various investment incomes (interest, dividends), are explained in an understandable manner.
52 WAYS TO WRECK YOUR RETIREMENT IS STRUCTURED AS A MANY-WEEK FRAGMENTED ACTION LIST
Potential for Dated Information: As the book was published in 2011, some of the specific figures mentioned, such as OAS clawback thresholds, maximum pension amounts, or interest rates, are based on data from that time. Market conditions, tax rules, and government benefit specifics can change over time, potentially rendering these exact figures less relevant today. While the underlying principles remain valid, readers need to be aware that updated numbers may be necessary for current planning.
Fragmented Structure: While the 52-chapter structure is intended as a strength for weekly action, it could potentially feel fragmented to a reader looking for a more linear, in-depth exploration of major topics. Some concepts are introduced briefly in early chapters (e.g., debt, net worth, investments) and then revisited in later, dedicated chapters.
Simplification of Complexities: While clear explanations are a strength, the "52 ways" format necessitates a degree of simplification for some topics. For example, the discussion on interest deductibility on investment loans notes its complexity and advises speaking to a tax advisor. The book provides a good overview but does not replace detailed, personalized professional advice, which the author herself stresses.
Limited Depth on Some Topics: Some chapters, particularly those touching on areas like starting a business or estate planning, provide essential points to consider but are relatively brief introductions compared to dedicated books on those subjects.
“retirement is not a short period of time”
“slow and steady wins the race”
WHO SHOULD READ 52 WAYS TO WRECK YOUR RETIREMENT AND HOW TO RESCUE IT BY TINA DI VITO?
The primary target audience for "52 Ways to Wreck Your Retirement" by Tina di Vito is Canadians who are planning for or currently living in retirement. This may include Canadians who want to understand the most common mistakes in retirement planning to avoid them. They may feel overwhelmed by the retirement planning process and don't know where to start. Or they may want a practical, step-by-step guide that breaks down complex topics into manageable pieces. The book addresses both the financial and lifestyle aspects of retirement specific to Canada. The writing style is accessible and avoids excessive jargon, making it suitable for a general audience rather than financial specialists.
HOW DOES 52 WAYS TO WRECK YOUR RETIREMENT DIFFER TO OTHER BOOKS ON RETIREMENT FINANCES?
The "52 Ways" Structure: The organization into 52 distinct, relatively short chapters, each focusing on a specific pitfall and offering a "rescue it!" strategy, provides a unique framework for tackling retirement planning over a year. This weekly approach makes a potentially daunting task feel more achievable.
Focus on "Mistakes": Rather than simply outlining how to plan, the book takes a novel approach by highlighting common errors. This can resonate strongly with readers who may recognize their own behaviors or misconceptions, providing motivation to change.
Integration of Financial and Lifestyle: While many retirement books focus heavily on investments and savings, Di Vito explicitly includes significant sections on lifestyle adjustments, psychological readiness, and practical considerations like downsizing or starting a retirement business. This holistic view sets it apart.
Canadian Specificity: By focusing on Canadian financial products (RRSPs, TFSAs, GICs), government pensions (CPP/QPP, OAS), tax rules, and residency considerations, the book is directly relevant and highly valuable for its target audience in Canada.
Author's Personal Experience: The book draws directly from the author's extensive conversations and observations as a financial professional, giving it an authentic and experienced perspective on the actual challenges faced by Canadians.
52 WAYS TO WRECK YOUR RETIREMENT - TINA DI VITO - RETIREMENT FINANCES - CONCLUSION
Tina Di Vito's "52 Ways to Wreck Your Retirement" is a highly practical and accessible guide for Canadians navigating the complexities of retirement planning and living. Its strength lies in its unique structure, breaking down the vast topic into 52 digestible, action-oriented lessons. By focusing on common mistakes, the book provides relatable insights and motivates readers to address potential pitfalls proactively. It effectively covers a wide range of crucial areas, from debt and investing to taxes, pensions, lifestyle adjustments, and the importance of seeking professional help.
While some specific figures tied to its 2011 publication date may need updating, the fundamental principles and strategies remain highly relevant. The book serves as an excellent starting point and ongoing reference, arming readers with essential knowledge. Ultimately, Di Vito successfully delivers on her promise to provide simple strategies to help Canadians transition into retirement with confidence and clarity, emphasizing that taking action and having a plan are key. It makes a strong case for proactive planning and highlights that even small, consistent steps can lead to a more secure and fulfilling retirement. However, as the author herself notes, for comprehensive, personalized planning, consulting a qualified financial advisor is advisable.
“ignoring risks can be detrimental to your retirement”
“work with a financial advisor”
FREQUENTLY ASKED QUESTIONS ABOUT 52 WAYS TO WRECK YOUR RETIREMENT AND HOW TO RESCUE IT
What exactly is retirement planning, beyond just saving money?
The book emphasizes that retirement planning is much more than just accumulating savings or contributing to a company pension or RRSP. Thinking you have a retirement plan when you don't is identified as a potential mistake. According to the author, there is a widespread lack of understanding about what retirement planning involves.
A complete retirement plan consists of two distinct phases. The saving phase focuses on growing your money, managing spending, paying off debt, and accumulating enough funds to live your desired retirement lifestyle. The spending phase is about ensuring your money lasts throughout your retirement years.
Retirement planning also involves thinking about what retirement means to you personally. It's an individual journey, and no two retirements will be the same. Key considerations include:
When you might want to retire, as this impacts how you'll spend your time and how much you need to save. Thinking about a potential retirement age is important for starting the planning process, even if the date changes.
How you might spend your time in retirement. It's important to paint a mental picture of your future, considering hobbies, aspirations, time with family and friends, and where you might live. You need an idea of what you are saving for.
Only after these non-financial aspects are considered can you move on to planning your finances, which involves estimating the cost of your desired retirement, identifying potential retirement income sources, and calculating how much you need to save to fill any income gap. A comprehensive retirement plan needs to address many different aspects, not just savings targets.
How do I figure out how much money I actually need to retire?
The question of "how much is enough" is a common concern for Canadians across all income brackets, and the book states there is no one-size-fits-all answer. The amount needed depends on your lifestyle and a bit of luck. To determine how much you need to have saved, you need to estimate your retirement costs and income sources.
Estimating retirement costs can be harder the farther you are from retirement. A common rule of thumb is to aim to replace approximately 70 to 80% of pre-retirement income, though this varies based on income level. Knowing what you want to do in retirement helps make a better cost estimate. You need to consider expenses that disappear (like work costs, mortgage) and new costs that may arise (like health care, travel). Doing a detailed estimate of your expenses during retirement is recommended.
To estimate retirement income, identify sources such as government pensions (CPP/QPP, OAS), employer pensions (DB, DC, group RRSP), and personal savings. A part-time job or hobby can also be an income source. It's important to understand what kind of employer pension you have and the amount you'll be eligible for. Don't forget your "hidden pension" like Old Age Security. However, be aware that expected CPP/QPP and OAS amounts may differ from what you actually receive.
Calculate how much you need to save by identifying the shortfall between your expected income and expenses. This gap determines how aggressive your saving strategy needs to be. The amount you need to save also depends on how long your savings need to last. It is customary to plan to age 90.
The book suggests a quick way to come up with a saving goal by estimating the annual income needed from personal savings (above pensions), the number of retirement years the income is needed for, how much money is needed at the start of retirement to provide that income (which may require a financial calculator or advisor), how much has been saved so far, and how many years until retirement. Working toward your savings requirement involves calculating how much you need to save between now and retirement and the required rate of return. Reviewing your personal net worth statement helps get an idea of available personal savings.
The book also highlights several "retirement risks" that can impact how much money you need and how long it lasts, including longevity risk (living a long time), inflation (eroding purchasing power), health risks (costly care), investment risk (market declines), spending risk (spending too quickly), saving risk (under-saving), and tax inefficiency risk (taxes eroding earnings). These unknowns can make planning difficult.
“live within your means”
“manage your debts”
What are the biggest dangers that could "wreck" my retirement, even if I plan?
Living a long retirement (Longevity Risk): While positive, living for 30 years means savings need to last a very long time. Running out of money is a significant fear.
Inflation: The price of goods increases over time, eroding purchasing power and meaning your savings need to be larger to compensate. Being too conservative in investments can mean returns don't keep up with inflation.
Health risks: The longer you live, the higher the chance of needing specialized or long-term care, which can involve significant costs not covered by provincial programs. Critical illness can also arise in retirement.
Investment risk (Market risk): Market declines, especially early in retirement when making withdrawals, can prevent a portfolio from recovering and cause savings to run out faster. Not understanding how your money is invested or how much risk you can tolerate can lead to inappropriate decisions. Watching investments too closely and overreacting to market fluctuations (herding) can be costly mistakes. Being too safe (too conservative) can also be a risk, preventing savings from growing enough.
Spending too much money too early: Entering retirement with limited resources means how you spend money impacts how long it lasts; spending too quickly can be devastating. Fear of running out of money can also paralyze retirees into not spending at all. Giving away too much money to children or grandchildren during your lifetime without considering your own longevity needs is another risk.
Tax inefficiency: Income taxes erode earnings both while working and in retirement. Not minimizing income tax can mean your money doesn't go as far. Overpaying tax on investments or due to issues like the OAS clawback (when income exceeds a certain threshold) are concerns.
Not having a clear plan or sticking to it: Thinking you have a plan when you don't, not knowing where you stand financially (net worth), or not knowing where your money is going (spending habits) make effective planning impossible. Relying solely on rough estimates or calculators without comprehensive advice can lead to inadequate preparation.
Over-reliance on expected income sources: Overestimating CPP/QPP or OAS pensions, or relying too heavily on an employer pension without understanding its type (DB vs. DC vs. group RRSP) or security (underfunded plans) can lead to under-saving.
Not being prepared for personal changes: Not being prepared to be single in retirement (due to divorce or death of a partner) can result in unexpectedly lower income. Failing to talk to your partner about retirement plans can lead to conflicting expectations. Fearing retirement itself, and the loss of identity or structure, can impact satisfaction. Making too many big life changes immediately upon retiring can also lead to disappointment.
Protecting your ability to earn and your accumulated assets during retirement is crucial. Risks like financial fraud and scams (identity theft, phishing, fraudulent investments) can significantly impact your nest egg if you share too much information or aren't vigilant. Not having proper protection like disability or long-term care insurance, or not having an up-to-date will and estate plan, can also pose significant risks.
Beyond the big picture, where else do Canadians commonly stumble in retirement planning?
While saving enough and understanding market risks are critical, the book points out that many seemingly smaller decisions or overlooked areas can also significantly impact your retirement security.
Mismanaging Debt (especially mortgages and credit cards). The book stresses that preparing for retirement isn't just about building savings, but also about paying off loans so you can ideally retire debt-free. Not all debt is viewed equally ("good debt" vs. "bad debt"), but having too much debt that is difficult to manage payments for is always considered bad. Using debt for things that decline in value (like cars or electronics) is considered "bad debt". The book specifically calls out mortgages and credit card debt as areas where Canadians make mistakes.
Taking too long to pay off your mortgage is a potential pitfall. The amortization period significantly impacts how quickly you pay off the mortgage. Paying off your mortgage as quickly as you can frees up cash to save and invest for retirement and improves your net worth. The book suggests strategies like making accelerated or extra payments. Choosing a shorter amortization period means much less interest is paid. While variable rate mortgages can save thousands in interest costs over the long run, fixed rates offer payment stability. The book cautions against treating your home like an ATM by constantly borrowing against increasing equity, which can be dangerous if house prices fall.
Misusing credit cards can easily wreck retirement when they are used as long-term loans. Credit cards are popular for convenience and security, but research shows people are willing to pay significantly more for items when using plastic compared to cash. Carrying a balance on a credit card with high interest rates, especially if only making minimum payments, can result in paying almost as much in interest as the original purchase amount over many years. The book strongly advises paying off credit card balances as quickly as possible, starting with the card with the highest interest rate.
Making Investment Mistakes Beyond Just Risk Tolerance. Understanding how your money is invested is crucial, as a lack of knowledge can lead to believing your money is earning more than it is or causing sleepless nights. While knowing your risk tolerance is key, the book highlights other specific investment pitfalls:
Thinking you'd rather be safe than sorry can actually add risk. Being too conservative means your investments may not keep up with inflation and taxes, causing your nest egg to shrink. Inflation is called the "silent investment killer". While it's okay to be safe with money needed in the short term, for longer time horizons, investments need to grow. Earning just 1% or 2% more over time can have a significant positive impact. The book describes the "investment escalator" strategy using GICs with staggered maturity dates as a way for safe investors to potentially earn a higher return with some flexibility.
Putting all your eggs in one basket means not diversifying. Diversification means buying different investments that complement each other to spread out risk. Not knowing what's actually inside your mutual funds can lead to thinking you are diversified when you are not, especially in the relatively small Canadian equity market where there's often duplication across funds. Over-concentrating investments in employer stock purchase plans is highlighted as a significant risk, referencing the Enron collapse as a cautionary tale about waiting until retirement to diversify.
Thinking that retiring means you stop investing is incorrect. Since retirement can last 30 years or more, your savings still have time to grow. The "100 minus age" rule for equity allocation is mentioned, suggesting a decreasing but still present equity component as you age. An alternative is to divide money based on when it's needed, with short-term funds invested conservatively and long-term funds in riskier assets.
Looking for a magic pill to boost savings, particularly by taking on too much risk to make up for lost time or poor performance, is a danger. There is no magic pill; growth depends on time, contributions, and rate of return. Increasing contributions is largely within your control and can boost savings without increasing risk. Continuing to invest regularly, even during market downturns (dollar cost averaging), works in your favour. Relying solely on a high rate of return requires taking on more risk, which may not be appropriate, especially closer to retirement.
Paying Too Much Tax. Income taxes erode earnings both during working years and in retirement. Minimizing income tax is a way to make your money go farther. The book discusses specific tax issues that can "wreck" retirement plans:
Giving back your OAS due to the clawback is a concern for some. The Old Age Security (OAS) pension is paid from general tax revenues starting at age 65 and is inflation-adjusted. While not a large amount monthly, the maximum collected over 25 years can exceed $160,000. OAS is taxable income and is also subject to clawback if net income exceeds a certain threshold (e.g., $67,668 in 2011). Every dollar over the threshold results in a 15-cent repayment of OAS. At higher income levels, the entire OAS pension can be clawed back. Strategies to potentially reduce the clawback include timing withdrawals from personal savings and minimizing income from sources like capital gains realized in a single year or eligible Canadian dividends (due to the gross-up effect on net income).
Not taking advantage of tax gifts such as the Tax Free Savings Account (TFSA) is a missed opportunity. Introduced in 2009, TFSAs allow contributions from after-tax dollars, but all investment income (interest, dividends, capital gains) is tax-free, both while in the account and upon withdrawal. This is unique in Canada compared to registered accounts like RRSPs/RRIFs where withdrawals are fully taxable as income. TFSA withdrawals do not affect your taxable income and thus do not impact benefits like the OAS entitlement or the clawback. TFSAs are flexible, with no mandatory withdrawal age and the ability to recontribute withdrawn amounts in future years. They can hold various investments like GICs, mutual funds, stocks, and bonds. Using TFSAs for cash flow is the first place to look if you need extra money in a year because withdrawals are tax-free and won't affect your taxable income or OAS entitlement.
Choosing the wrong beneficiary for registered plans like RRSPs, RRIFs, or TFSAs can impact the retirement of a surviving spouse or partner. Naming a beneficiary other than the estate avoids probate fees. For spouses, naming them as beneficiaries allows the proceeds to potentially be rolled into their own registered plans tax-deferred. For RRIFs, naming a spouse as a successor annuitant can simplify administration by allowing them to take over the existing RRIF account. Failing to update beneficiary designations is also a common mistake.
“stick to your plan”
“a penny saved is a penny earned”
ABOUT TINA DI VITO, AUTHOR 52 WAYS TO WRECK YOUR RETIREMENT AND HOW TO RESCUE IT
Tina Di Vito is a Partner, Canadian Family Enterprise Leader and Family Office Leader at Ernst & Young. She was previously head of the Retirement Institute at Bank of Montreal, a major Canadian financial institution.
Tina’s extensive consulting experience encompasses strategic tax, estate planning, succession planning, stewardship of wealth and philanthropy strategy. She has helped families articulate vision, values and purpose and develop governance policies that guides families through decision making while enhancing communication and alignment. She has developed and delivered numerous educational programs and has been a speaker at regional and national events. She possesses a keen ability to analyze complex material and communicate it effectively to business owners and families. Throughout her career, Tina has worked with organizations and families to identify challenges, seize opportunities and foster cross-generational collaboration. Although a tax practitioner by trade,
Tina is a Chartered Professional Accountant and certified Family Enterprise Advisor. She holds a Bachelor of Commerce in finance economics from the University of Toronto, Rotman School of Management. A sought-after speaker at regional and national industry events, Tina has developed and delivered numerous educational programs over the course of her career.
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