My Comments on “Planning can help you make sure your retirement savings will last” Article

Here are my comments to a June 11, 2018  article in the Toronto Star “Planning can help you make sure your retirement savings will last” by Ellen Roseman.

Good article but there are some additional concerns that need to be included in this conversation.

The 1st is health. I have clients who saved like mad but now, in their early seventies one partner is too sick to do anything except go to doctors or the hospital. Why, despite advice to the contrary, did they insist on continuing to save for a future they won’t have?

How do you know your future health condition? Or that of your partner? So why are you waiting to take the CPP?

And will you have the mental capacity or interest to direct an investment program? You are far better off to upload this problem onto independent shoulders. That is what an annuity is!

I read a lot of advice from columnists, no offence, who have absolutely no real life experience dealing with clients face to face. So they cannot possibly KNOW what are the clients real concerns. And I presume Mr. Vettese falls into this category, even though I agree with some of his comments.


My Comments on “Annuities may offer security in uncertain times” Article

Here are my comments to a March 19, 2018  article in the Toronto Star “ Annuities may offer security in uncertain times” by Lee Schafer.

Nice article Lee and I would like to make some comments.

Non-registered life annuity contracts can be guaranteed for a lot longer than 20 years. I have a client with a major life annuity company, where payments are guaranteed up to her age 115 and her lifetime!

And registered plans can have payments guaranteed for life and up to age 90 of the younger partner, which is the most common practice.

But that comment from Mortenson ignores the real reason which is drummed into all financial salesmen and women.” Don’t sell annuities as you will then lose the cash to move around to make more commissions and trailer fees”.

And that is the reason people are not inclined to buy annuities; they are actively directed into products that pay better commissions and, most importantly, trailer fees each year.

Government pensions are annuities, the same as company pensions. Personal annuities are a pension.


Buy Now or Buy Later?

Good afternoon everyone,

We are often asked about the best age to buy an annuity and today we are going to give you some information which should help you to decide.

People want to receive the highest income and to meet that request we give you quotes from all the companies, along with various guarantee periods.

But timing is also important; do we buy now or later? If we buy now, our monthly income will be less but will waiting improve our position? This is answered by comparing a “DO-IT-NOW” quote with a “DO-IT-LATER” quote. If it takes too many years to make up the forsaken income, you have your answer.


Well consider this. If interest rates across the yield curve increased (say by 2%) the impact on annuity incomes would be more significant for younger ages than for older ages. Considering the time value of money, a company will have the ability to earn higher yields for the younger clients for longer periods of time. For older clients the amount of time is shorter to take advantage of the higher yields.

If a company sells an annuity to a 80 year old, on average it doesn’t expect to pay income for that long a period. There is less time to take advantage of a possible increase in interest rates, especially when you consider most of the client’s deposit is being paid back faster than to a younger person.

For these older clients, mortality credits play a big role in the value they receive from an annuity, For younger clients it is more a combination of interest rates and mortality credits that provide the annuity value.


Here is a link to the Financial Post with information from Statistics Canada on that exact question

Our position remains the same. Only the RRSP holder and spouse can take advantage of the continuing income tax protection. When the RRSP holder or spouse passes away, there is no more tax protection.

And in most cases these days, a non registered annuity, is a replacement for a defined benefit pension.

But a DO-IT-NOW and a DO-IT-LATER quote will answer that question for you. In this context; Waiting is hoping!


Insurance Becomes an Annuity

Life Insurance Becomes An Annuity


You both buy $250k and one partner subsequently dies.

The surviving partner uses $30,000 ($25,000 after tax) to replace your income for the family

The fund lasts 10-12 years and your partner receives zero help for retirement.


You buy a joint $1M on your lives and one subsequently dies

The surviving partner invests the money conservatively and takes $30,000 ( $25,000 after tax ) to replace your income for the family.

The fund lasts and, at retirement,your partner has $1M to buy a guaranteed- for-life annuity.


If there are young children and the surviving partner cannot work to save money for retirement,where does the money for retirement come from?

Look At What You have Done

  1.  You have turned life insurance into an annuity.
  2. You have turned the insurance premiums you paid into $ 1 million cash.
  3. You cannot accumulate tax-free $1 million, by saving.
  4.  Annuity retirement income is now guaranteed.
What are annuities paying today?

What are annuities paying today?

Are annuities paying today less or more income than the payments yesterday? Possibly, because the companies change the rates in line with their current investments.

Annuity payments today may be different from yesterday or tomorrow. And those payments are usually a little more or a little less. And the reason payments may change is due to fluctuations in the various financial instruments used in pricing your payments.

How do I calculate the  price of today’s annuity?

You can easily figure out  today’s payment by using an annuity calculator. To calculate your annuity payment, companies look at the return they can achieve to safely guarantee that you will receive payments for your lifetime. The financial instruments include short and long term bonds, interest rates and longevity along with your sex and age. What is important for you to know is that can ” lock in ” the rate for up to 45 days for registered funds on the day you decide to take the annuity.

And while your rate with a particular annuity company may change today, some or all of the competing companies may keep the same rate. And that is why company X is on top of the rates table one day and tomorrow, company Y is paying today’s  best annuity rates for you. To cope with these constant changes you need an annuity broker to look after your interests.

So that is why you should use an annuity calculator to find out today’s rate. An annuity quote is personal as the rate is calculated on your date of birth and your capital not someone’s else. Our Annuity Rate Tables can give you an idea of what you will receive.

Example of an Annuity Paying Today

*Source: Sun Life Financial


what is a life annuity for retirement

What Is An Annuity For Retirement?

You’ve dreamed of this moment for years. After decades of hard work, you’re finally ready to settle down and retire.

Understandably, you’ll want your retirement to be comfortable and stress-free. One of the easiest ways you can ensure a great retirement is by securing an annuity.

But just what is an annuity and how do you go about setting one up?

Read on to learn the ins-and-outs of annuities and see how you can secure your retirement.

What is an Annuity?

At its core, an annuity is reliant on an agreement between you and an insurance company. This agreement states that in exchange for your capital, you’ll receive a set income for life and a certain number of years if you wish.

This means that you will receive guaranteed income after buying an annuity policy. There are two factors to consider.

First and foremost is the age of the person purchasing the annuity. Generally speaking, the older you are, the higher your income will be.

It’s also worth noting that registered annuities are taxable and non registered annuities carry a low tax rate which is sometimes zero.

Types of Annuities

Now that we’ve established an understanding of what an annuity is, let’s talk about options.

Your annuity is all about investing your registered or non registered funds.

They are the only two types of annuities.

A registered annuity is the end plan for your RRSP savings and other registered money from a LIF or a LIRA for example. Payments are taxable.

In contrast, a non registered annuity carries far less tax.

Who Should Consider an Annuity?

We’ve answered what is an annuity, but now let’s focus on who an annuity is for.

In short, anyone concerned about their financial future should look into purchasing an annuity. If you’re looking to secure a safe and stable retirement, an annuity is a smart choice.

When considering whether or not an annuity is right for you, ask yourself a few questions:

  • Why do you want guaranteed income in your retirement?
  • Do you have any  family you’d like to help after you pass away?
  • How much money can you invest?
  • Are you fed up with stock market volatility?

If you think an annuity is right for you, email me today for your free quote! All it takes to begin your smarter, more stable future is a few minutes of your time.

shop for an annuity

My comments on a recent article: 30,000 ‘missed out on extra cash’ by taking annuity with existing provider

This is what happens when people do not bother to shop for an annuity policy.

30,000 ‘missed out on extra cash’ by taking annuity with existing provider

Research by the Pensions Policy Institute for insurer LV= found that around 30,000 people across the UK potentially missed out on additional income by not shopping around.  – Belfast Telegraph Article

You normally don’t buy the first house or car that you see. And your retirement income for life is a lot more important than  a house or a car. Do you know anyone who is poor at an old age? Not a pretty sight.

Annuities give a set income in retirement. While they give people a guarantee they will not run out of money in their old age, they have been controversial in recent years due to people failing to shop around for a better deal. – Belfast Telegraph Article

You need to get the best permanent income that is on the market. Period. We’ll find and rank the highest and lowest annuity rates available to you.

Compare annuity quotes now!


5 Key Advantages of a Life Annuity

Are you looking to retire but don’t know what type of financial plans you should pursue? A life annuity may be best for you for a number of reasons.

For instance, if you have a life annuity, you are guaranteed not to outlive the income afforded through this financial plan.

Below we outline the five main advantages you will get from a life annuity.

Let’s get started!

Your income will be guaranteed and predictable

When you buy a life annuity, you provide a lump sum of money to an insurance company. In return you receive a predictable and specific amount of income during regular intervals for the rest of your life.

You now have peace of mind knowing that your income will never decrease or  end during your lifetime. You have a lifetime guarantee of income if you buy an annuity like this.

A life annuity requires little management

Once you set up an annuity plan, it will require very little or no management, ever.  You won’t need to spend any time or worry  once you have completed the initial paperwork.

If you want to invest money but do not want to spend any time managing your portfolio, consider getting these life annuities. It is a very low maintenance income management strategy. And the safest.

Tax deferral status

Non registered life annuities are the only investment option that is given a tax deferral status by the federal government. All money put into a non registered annuity is tax-deferred until it’s withdrawn from the account.

Also, annuities have no cap on the amount of money you can.

And it will not be taxed until you withdraw the funds.

Retirement income safe from market and interest-rate risks

If you choose a life annuity, your retirement income won’t be at risk of interest rates or market fluctuations. This is a much better option than putting a lot of money into investment funds if you want guaranteed income.

You never know when a recession may arrive or the stock market may crash. It is against these possibilities, that you build your annuity wall.

Your loved ones can have guaranteed income upon your death

One of the key benefits of getting a lifetime annuity plan is that you can choose to leave an income to a beneficiary once you pass away.

The first step is to take a non registered annuity with payments guaranteed for a certain number of years. If you don’t outlive the guaranteed payments, they can pass on to that beneficiary.

Do you have any questions or concerns about lifetime annuities and their benefits? If so, please leave a comment below or contact us here.

Guaranteed Annuity

5 Big Factors That Affect Life Annuity Rates

You’re in the market for a life annuity policy, but you want to ensure you get the best rates possible.

Although your rates are determined at the time of application, you can use an annuity income calculator to find out what your approximate income might be.

Annuity rates can fluctuate depending on various factors.

So what are the biggest factors? Let’s discuss the 5 biggest factors that affect life annuity rates.

  1. Life Expectancy

There are many components that help determine your life expectancy when applying for a life annuity policy.

Serious Health Issues

Like most insurance companies, they want to know if you have serious (especially life-threatening) health issues.


Women live longer than men, so it makes sense that women receive less income from annuity policies, due to a longer life expectancy.


Age will always be a deciding factor. The older you are, the higher the amount of income you’ll receive monthly.

  1. Length of The Policy Affects Annuity Rates

It’s your choice how long you receive payments from an annuity policy.

Basically, the greater amount of years you’re covered, the less money you’ll receive monthly. And the shorter amount of years, the larger amount you’ll receive.

Plus, you have the option to keep the payments coming after your death. These will be passed onto your children.

  1. The Amount Of Payment You Deposit or Transfer

Like many things in life, you get what you pay for.

The larger the lump sum you provide initially, the greater the income you’ll get back monthly as a result.

  1. Single Or Joint Policy

This factor makes a monumental difference in your annuity rates.

There are pros and cons to each option, and it all depends on your unique situation.

If you have a spouse, you may want to consider a joint policy because joint policies will pay out to the last survivor.

But if you don’t have children and live alone, the obvious choice would be to buy a single policy. Plus, the monthly payout is larger for single policies.

  1. Additional Options Added To Policy

Normally, annuity payments are fixed, but if you are concerned about inflation, you may choose to have annuity payments indexed. You can choose to have income increase each year by a fixed percentage to help offset the impact of inflation.


Annuity policy plans are an excellent retirement option that is often overlooked.

Annuity policies provide flexibility and peace of mind knowing that you are covered financially for the rest of your life.

What more could you ask for?

If you have any questions regarding an annuity plan, feel free to reach out and contact us.

Retirement Plan

5 Retirement Planning Secrets for a Comfortable Life

The majority of Canadians are simply not prepared for retirement. And for those without employer pensions, the problem is even worse, since the Canadian Pension Plan does not provide enough to avoid poverty without other savings.

If you’re among the many Canadians who haven’t planned enough for retirement, don’t despair.

In this article, we’ll share some of the best retirement planning secrets. With the right plan, you’ll be right on track for a happy, comfortable retirement.

  1. An RRSP Makes Retirement Planning Easy

If you have any spare cash for an RRSP, enroll as soon as you can. A Registered Retirement Savings Plan (RRSP) lets you grow your money tax-free, which makes it much easier to save.

You’ll only pay tax when you remove the money in your retirement. Your tax rate at this time should be lower.

You can set up an RRSP at any bank, insurance company or trust company.  It’s better to start saving sooner than later. RRSPs have an annual contribution limit, so it’s better to add to it regularly.

  1. Check Your Employer Offerings

Many employers offer help for employees planning for their retirement.

They may provide a bonus to employees buying stock, adding to its value. Or, they may have an optional retirement plan where they add to your contributions.

This is basically free money for your retirement. Employers are happy to offer these programs to encourage employees to stay with the company. You owe it to yourself to use these programs!

Talk to your HR department to see what your options are.

  1. Save As Much As Possible

Retirement planning can be easy to put off because it seems so far away. The truth is, it is never too early to start preparing.

It may seem obvious, but the best way to prepare for retirement is to save!

Keep a monthly and annual budget plan that includes contributions to your retirement savings. While this may mean cutting down on some luxuries now, it will be worth it in the long run.

  1. Take On a Part Time Job

More and more retirees are taking on part-time work. The money is a major reason, but it isn’t the only one.

A part-time job can reduce a lot of retirees’ stress about money. Knowing you have an income besides your pension and savings makes it a lot easier to feel good about your finances. You can also keep certain employee benefits too, like dental coverage.

Plus, many retirees choose to work simply because they enjoy it. Having a part-time job in retirement can allow you to still live a retired lifestyle while having the mental, physical, and social benefits of working.

  1. Add To Your Retirement Income With An Annuity

An annuity can make it much easier to live comfortably in retirement.

It is another form of investment where you invest now in order to get paid back monthly later in life.

You could set up an annuity for your retirement. It is like receiving a monthly paycheque to supplement your pension plan.


Retirement planning doesn’t have to be daunting!

With these five tips, you can get ready for a comfortable retirement, without having to stress too much about your savings.

Do you have more questions about getting retirement-ready today? Contact us for more information!