Retirement savings accounts
Retirement Savings Accounts Include:
A word about BeneficiariesWhen dealing with government regulated accounts, it’s important to make sure you have the proper beneficiaries listed on these accounts.Case StudyA client came into to see a colleague of mine at J.C. Mitchell Insurance Group. She was looking for advice about her situation with her husband’s RRSP at the Bank.Her husband had passed away. He had been previously married and widowed and had married this woman as his second wife. After hubby had lost his first spouse, he had changed his RRSP beneficiary to his son. After getting remarried he simply forgot to change the beneficiary to his new spouse. He didn’t plan this and this was not his intention, he simply forgot to make the change. When he passed away his son received the cash from the account and the spouse received the tax bill. The son was not on good terms with his stepmother and refused to help with the tax bill. Because of this the widow was forced to sell her home to pay her husband’s tax bill. Remember the Tax man does not forgive - he collects. Ask your advisor to double check the beneficiaries listed! Let’s be sure.
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Terry Johnston CFPJ C Mitchell Financial Services Inc. Phone: 866-721-7781 ext. 232 Disclaimer The thumbnail sketch of registered accounts presented here is to provide you with general information and guidelines. When dealing with any sort of government regulated account, please speak with a Financial Professional - someone licensed by the province. These plans like all aspects of a financial plan must be tailored for the individual, within the limits of the plan. Making a mistake with a Registered plan can cost you big time!
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