When it’s time to create regular cash flow from your investments, where do you start? If you’re retiring, how will you make your money last? How will taxes affect your income? What will you invest in?
With more Canadians living longer, having a sustainable source of income is essential when you retire. A successful plan for retirement income focuses on three things:
- Creating tax-efficient cash flow, so you keep more of what you earn.
- Actively managing your portfolio to ensure it includes some growth potential
- Reviewing your cash flow regularly, to make it last.
This is where RBC Managed Payout Solutions can help.
These solutions deliver steady monthly cash flow over the long term, while keeping an eye on how market movements affect your investment.
First, RBC Managed Payout Solutions invest in a diversified mix of investments. The different types of income paid by these investments create tax-efficient cash flow. While some are taxed the same way as employment income, others are taxed less heavily and allow you to keep more of what you earn.
Second, to help protect your wealth, RBC Global Asset Management actively manages your portfolio.
As markets shift, our experienced investment teams regularly monitor and rebalance your portfolio. This means it stays aligned with your goals as markets rise and fall. Adjusting the amount invested in equities, fixed income, and cash – when necessary – helps provide some growth potential alongside the tax-efficient cash flow.
Lastly, we also review the distribution levels each year. If the value of your portfolio hasn’t changed much during the year, your distributions don’t change. But if markets have been stronger or weaker than expected, we may adjust your distributions up or down as needed. This helps manage the impact of distributions on your invested capital.
You've worked hard to save and invest for the future. When it comes time to start spending those savings, RBC Managed Payout Solutions help you create steady, reliable cash flow for many years to come.
And because everyone’s cash flow needs are different, RBC Managed Payout Solutions are available with target payout rates of 5%, 6%, or 7%. You choose the payout level that’s right for you.
To learn more about RBC Managed Payout Solutions, talk to your advisor.