Interview with Ivon Hughes - lifeannuities.com - Part 2
Monty Loree: So what you're saying is that at some given point, the agreement says they're going to be getting a stream of revenue, like $500.00 a month or whatever they agree to.
Ivon Hughes: Exactly. And you can do it with registered money, RRSP money, or you can do it with one registered money. You can't get the interest rate at the bank and if you want any interest you do get as tax. It's fully taxable whereas non-registered annuity, with $500.00 or so that you get every month, part of that is your turn of capital and part of it's interest. It's only the interest portion that's taxable so you end up with more money in your pocket fund for your savings.
Monty Loree: Okay, interesting. So basically it's kind of like a retirement savings type of situation.
Ivon Hughes: Absolutely. You can have a registered annuity and you can have a non-registered annuity and a lot of people do have both.
Monty Loree: So who's calling you on the phone? What is the age that somebody needs to be thinking about annuities? Is it somebody that's 18 or... ? Is there a better deal if you start later on?
Ivon Hughes: I have clients of age 45, but that's rare. Usually it's 55/60/65 and upwards. That's when I'd say they're fed up with trying to get better returns and avoid the tax grant, etc. The family have gone, the children moved out and probably got their own children and their expenses are fixed and all they need to know is they got to get a fixed income for the rest of their lives.
Monty Loree: So yes, I guess that's a good point. I'm just speaking for the younger folks. When you start in your career, you've got house payments, you've got all sorts of expenses to look forward to. But by the time you hit retirement, generally your house is paid off, the car is paid off, all your debts in theory should be paid off. So you can live on a fixed expense.
Ivon Hughes: Exactly. You'd have a lot of experience during your lifetime of finding out what is important, what is not important. And if you know that $1,200.00 or $1,400.00 a month fixed is better than trying to get $1,600.00 or $1,700.00 a month, then you're content with what the annuity will pay you.
Listen to podcast with Ivon Hughes
Visit Ivon Hughes at LifeAnnuities.com
Monty Loree: So what you're saying is that at some given point, the agreement says they're going to be getting a stream of revenue, like $500.00 a month or whatever they agree to.
Ivon Hughes: Exactly. And you can do it with registered money, RRSP money, or you can do it with one registered money. You can't get the interest rate at the bank and if you want any interest you do get as tax. It's fully taxable whereas non-registered annuity, with $500.00 or so that you get every month, part of that is your turn of capital and part of it's interest. It's only the interest portion that's taxable so you end up with more money in your pocket fund for your savings.
Monty Loree: Okay, interesting. So basically it's kind of like a retirement savings type of situation.
Ivon Hughes: Absolutely. You can have a registered annuity and you can have a non-registered annuity and a lot of people do have both.
Monty Loree: So who's calling you on the phone? What is the age that somebody needs to be thinking about annuities? Is it somebody that's 18 or... ? Is there a better deal if you start later on?
Ivon Hughes: I have clients of age 45, but that's rare. Usually it's 55/60/65 and upwards. That's when I'd say they're fed up with trying to get better returns and avoid the tax grant, etc. The family have gone, the children moved out and probably got their own children and their expenses are fixed and all they need to know is they got to get a fixed income for the rest of their lives.
Monty Loree: So yes, I guess that's a good point. I'm just speaking for the younger folks. When you start in your career, you've got house payments, you've got all sorts of expenses to look forward to. But by the time you hit retirement, generally your house is paid off, the car is paid off, all your debts in theory should be paid off. So you can live on a fixed expense.
Ivon Hughes: Exactly. You'd have a lot of experience during your lifetime of finding out what is important, what is not important. And if you know that $1,200.00 or $1,400.00 a month fixed is better than trying to get $1,600.00 or $1,700.00 a month, then you're content with what the annuity will pay you.
Listen to podcast with Ivon Hughes
Visit Ivon Hughes at LifeAnnuities.com
