Retirement: Keep Income Coming

Your money doesn’t have to dry up after you stop working. Here are some suggestions on how to ensure that you have enough cash to live the way you want.


As much fun as retirement may sound to some people, there’s one big worry that can prevent Canadians from truly enjoying their post-working years: money, or lack thereof. When you stop working, the paycheques stop coming, which, of course, can make it difficult to maintain your standard of living.

Fortunately, there are ways for people to maintain an income during retirement, says Jack Courtney, Vice-President, Private Client Planning, at Investors Group. He explains in this Q&A.

Jack Courtney
B.A., LL.B., CFP, TEP, is Vice-President, Private Client Planning at Investors Group

  • What strategies should retirees use to sustain their income over the long term?

    Retirement is a transition in lifestyle. You need to do some work and think about what it is that you’d like to do, and cost that out. I recommend doing that with an advisor who can show you, come good markets and bad, how much you can take out [of your portfolio]. You should also be honest with yourself about your ability to handle volatility, and what options will help you sleep better at night.

  • What are the different investment options to consider in retirement?

    You need equity-based investments in a portion of your portfolio as a hedge against inflation, which can pare down your spending power over time. You also need to consider tax efficiency, because the less tax you pay, the longer your money is going to last. That might include corporate-class mutual fund structures, maybe combined with Series T mutual funds, which can be a tax-efficient way of taking an income stream from your non-registered money. You should also look at different guaranteed-income options, such as life annuities. You can combine them with life insurance, too. These are just some of the options.

  • What are some of the common mistakes retirees make with their portfolio?

    People are sometimes quick to help their kids and grandkids before they’ve costed out what it takes to finance themselves through retirement. On the other hand, some people are too conservative. They don’t know how much they can reasonably spend and have their money last. As a result, they don’t enjoy themselves as much as they could. That’s why I’m a big believer in going through a retirement income planning process, to give you the confidence to spend your money and enjoy it.

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