TORONTO, ONTARIO — (Marketwire) — 02/20/12 — As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito-s new book .
Tip Number 39:
Avoid paying too much tax on investments
After selecting the right asset mix based on your risk tolerance and goals, consider the after-tax rate of return on your investments in order to make the most appropriate investment decisions and avoid paying too much tax. Although there are thousands of investment options available today, there are only three types of investment returns and each type is taxed differently:
To ensure you-re not paying too much on investment tax, consider the following:
Tip Number 40:
Be prepared to be single in retirement
If you are part of a couple right now, your retirement plans likely include both you and your partner, even though there may be two distinct retirement dates and two sets of pensions and retirement savings. However, it may come as a surprise to know that 43 per cent of Canadians aged 65 and older are single. Some have never married, but 88 per cent of those singles are widowed, separated or divorced. So it stands to reason that becoming suddenly single in retirement could be a reality for many Canadians. And while planning for this reality can be uncomfortable, here are a few aspects worth considering:
For more information on retirement: .
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