Disposing of Non-registered Assets
These are just some of the options you might consider if you find yourself with an income gap:
- cashing term investments and bonds as they mature
- selling stocks
- making mutual fund withdrawals
- purchasing a prescribed annuity
- selling your home
- negotiating a reverse mortgage on your home
- liquidating real assets
Before making your decision factor the long-term loss of revenue you may incur by selling income-generating investments into your income calculations.
Cashing Term Investments and Bonds
As term investments and bonds mature, take only the income you need. Then reinvest the balance.
Selling Stocks
Try to avoid selling in a hurry.
Stock markets fluctuate, and you don't want to find yourself having to sell your shares when they're low because you need the cash. So start monitoring the market a few years before you think you'll need the money and convert your shares into more stable investments when they're performing well.
Making Mutual Fund Withdrawals
Devise a systematic withdrawal plan that allows you to sell mutual fund units automatically to provide you with regular monthly income. Discuss your withdrawal strategy with your LIF provider.
Liquidating Real Assets
Consider selling personal assets and large household items such as a second car, boat, vacation home, etc. - particularly if they are no longer used regularly.
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