Converting your other assets into income
You may be fortunate enough to have assets outside of registered accounts like RRSPs and pension plans. Depending on your priorities, you can also use them to help fund your retirement.
- Non-registered investments you hold outside of registered accounts - such as non-registered mutual or segregated funds, stocks, bonds or bank accounts.
- Real estate - some people who own their homes choose to downsize and free up some of the value of their home. Selling your primary residence at a profit isn't taxable, either!
- Inheritance - for some, a future inheritance can make a big difference in their retirement planning. Be careful, though, about how much you're counting on money you currently have no control over!
Because money from these sources isn't registered, you have more flexibility on how to use it for retirement. You can do whatever you want with it, for example, you can:
- buy a lifetime annuity that guarantees you income for life, or
- buy investments that provide automatic withdrawals
You maintain control over your money in whatever way you choose.