Retirement income Essay Example | Topics and Well Written Essays - 500 words

Retirement income - Essay ExampleThe accumulation of personal savings and income during my working period leave alone form the largest bulk of my retirement income. This is beca give it requires a capacious amount of retirement income to sustain a pre-retirement lifestyle. Examples of investment options that I am including in my retirement income plan are money in savings accounts, stocks and bonds investments, taxation free savings accounts, and RRSPs and RRIFs (Brown, Chambers & Currie, 2001). The other investment option is accumulated property including a home and business assets. The overall savings and investments strategy is long-run and this will involve a diversified savings and investment portfolio. The advantage of maintaining a diversified portfolio is that I will be in a ripe(p) position to get returns in the long-run. It too eliminates the dilemma of deciding when to return to the market after making an exit when the market performance is low.I would also like to a djust my asset mix on a regular basis because this provides the opportunity to take advantage of differences in the performance of the different classes of assets. Rebalancing will also ensure that I re-align my portfolio with my goals and level of risk tolerance. I will be making progressive and consistent financial contributions to a RRSP on an yearbook basis. RRSP have the benefit of generating earnings that grow on the basis of tax-deferral and its contributions provide a signifi so-and-sot amount of tax savings (Brown, Chambers & Currie, 2001). I can use the savings to make additional investments or even pay existing debts.Employers offer two types of pension plans for their employees including defined benefits plans and defined contribution plans. A defined benefits plan will involve getting a pre-determined amount of my income upon my retirement. On the other hand, a defined contribution plan will use my accumulated investment income and contributions in providing a pension benefit. I will go for a defined contribution plan