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ADVERTORIAL
DOLLARS & SENSE

Structure your investments and your business

for retirement.

For many business owners, their business is their main retirement ment income. And inflation erodes what little purchasing power
asset. However, you may have other plans for your you have left.
business, such as passing it onto family members. Or
perhaps you will need assets above and beyond your Most people approaching retirement share these same
business to fund your desired retirement lifestyle. challenges, regardless of whether or not they own a
business. But if you are a business owner, you also
Whatever your situation, it makes sense to ensure that have the challenge of what to do with your business
you will have enough to fund your retirement – wheth- when you retire. Do you plan to sell it? If so, how
er it’s from selling your business, drawing income from much will it be worth when you retire, and will that be
other sources such as your registered plans, or receiv- sufficient to fund your retirement? And what are the
ing an inheritance. A comprehensive financial plan can best strategies for selling your business?
help you determine if you will have sufficient funding
and, if not, recommend the steps you need to take to Or do you plan to pass on your business to family
ensure that you will. It’s especially important given the members, and draw on other income sources? If so,
new challenges that retirees now face – including low Erica Tennenbaum, CFP, FCSI do you have enough? What strategies can you use to
interest rates, high taxes and inflation. Vice President & Wealth Advisor maximize your retirement income?
New retirement income challenges A plan for you – and your business
In the past, you could simply put your retirement savings in guar- When the time is right for you to transition from your successful
anteed investments like GICs and bonds, confident that the interest business to your retirement lifestyle, there are a number of issues
payments would fund your golden years. But several factors have you need to consider. A comprehensive plan can help you with:
combined to make this strategy unfeasible for most retirees.
Transitioning your business – protecting your income stream
First, people are living longer after they retire. Thirty years ago, Effective cash management – giving you the time you need to
people generally only lived for a few years after retiring at age 65. weigh your long-term investment options
But now, people on average can expect to live nearly 20+ years after Investment options and advice – to help you choose a solution that
retirement at age 65, meaning their retirement nest eggs will need to fits your new lifestyle and protects your wealth
last that much longer. Tax strategies – that maximize the after-tax sale revenue to give
you more options in the future.
Partly as a result, retirees are also living healthier, more active life-
styles, which tend to cost more than simply sitting on the front porch If you would like more information on any of the above questions
in a rocking chair. Today’s retiree also expects a higher standard of please feel free to give us a call and request a copy of the business
living. They want to enjoy the good life – which also comes with a owner planning brochure.
financial cost.
Erica Tennenbaum, CFP, FCSI, Vice President
With these two demographic trends – longer lifespans and higher
lifestyle expectations – it’s becoming increasingly difficult to gener- Associate Portfolio Manager and Wealth Advisor
ate a sufficient income from the traditional interest-bearing invest- RBC Wealth Management
ments, such as GICs and bonds. As of mid-2007, interest rates have www.ericatennenbaum.com
remained at historic lows. Furthermore, interest income is fully tax- 519-621-1307
able at your marginal tax rate, unlike many other types of invest-

Professional Wealth Management Since 1901

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered
properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor
its employees, agents, or information suppliers can guarantee its accuracy or completeness. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities
Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business
segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. © 2018 RBC Dominion Securities Inc. All rights reserved.
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Summer 2018