Peak Securities Inc.
Member,
Canadian Investor
Protection Fund


These rates are accurate as of September 03, 2010

The following table of rates may be useful as you consider converting your RRSP's to an income.

Please remember that rates are current at the time of posting to the site, but may change without notice.

Monthly incomes commencing one month from issue based on $100,000:

 

Life Annuity 10 yr. Guarantee

R.R.I.F.

Age Male Female Joint 1st year
Minimum
Accelerated
Payout
Total
Payout
60 582.00 532.00 489.00 139.00 5yrs $1809 $108,540
70 706.00 640.00 588.00 167.00 10yrs $957 $114,840
80 865.00 810.00 761.00 198.00 15yrs $682 $122,760


GICs

1.30 2.00 2.30 2.75 3.00 3.30 2.85
Daily 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr

As an alternative to investing your non-registered capital in GIC's or bonds, you may consider the "Insured Annuity" which may dramatically increase your after-tax cash flow as indicated below:

Insured Annuity
Income based on $100,000, male or female age 70:

  GIC at 3.30 % Life Annuity
    Male Female
Gross Income $ 3,300.00 $ 9,016.96 $ 7,920.58
Taxable Income $ 3,300.00 $ 1,770.58 $ 1,709.40
Tax (payable at 37.7 %) $ 1,244.10 $ 667.51 $ 644.44
Net Income $ 2,055.90 $ 8,349.45 $ 7,276.14
Insurance Cost $ 0.00 $ 4,138.00 $ 3,320.00
After Tax Rate of Return   2.06 % 4.21 % 3.96 %
Spendable Income $ 2,055.90 $ 4,211.45 $ 3,956.14
GIC Equivalent %   6.76 % 6.35 %