Oaken Update – July, 2015

RIF withdrawals—new changes starting in 2016

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As we noted in an earlier Oaken Update, the rules around RIFs have changed. Previously, retirees had to withdraw a minimum of 7.38% of their RIF (if opened after 1993) in the year they turn 71, with the percentage rising regularly in subsequent years. Now, the minimum withdrawal for holders who are 71 is at 5.28%.

This means that seniors can make a RIF last longer than before—which is good news, given how much longer we’re all living these days! It also means that building up your RSP is now even more important than ever. The lower withdrawal rate lets you defer taxes that extra bit, and makes it easier to stay within a lower tax bracket for a greater portion of withdrawals, which can make your savings go that much further.

Re-setting your withdrawal amount

If you already have a RIF, you’re probably wondering what to do about re-setting your minimum withdrawal rate. The answer is simple: leave it to us. We’re on top of this, and have put in place everything that is needed for a smooth transition to the new lifetime withdrawal schedule. We’ll be letting you know more details about this in the fall. But for now, just rest assured that in January 2016 your RIF withdrawals will be adjusted to the new minimum, or to a higher amount as specified by you.


Oaken grows again

Hot on the heels of our new Toronto space, our Calgary store is now open for business!

We held a special sneak preview on June 25, and were delighted to meet so many of our local customers and friends. Click here to watch a short video of the highlights from this event.

Four days later, we opened our new store to the public. Showcasing our fresh, open approach to savings and personal finance, the space highlights our emphasis on service and technology.

If you’re in the Calgary area and haven’t had a chance to visit yet, please drop by. We’d love to meet you—we always welcome everyone with a smile, a hot (or cold) drink, and a readiness to listen and meet your needs. Just what you’ve come to expect from Oaken.


How to keep track of maturing GICs

We recently received a helpful note from a client about the email alerts we send out when a GIC is maturing. As he noted, these alerts don’t give a lot of details about the GIC in question—which is due to our security policy, designed to ensure your information is always protected by never disclosing the full details of an investment via email. He wondered if there was any other way he could keep track of his GICs, and more easily see which ones required action.

There is, in fact, another way: Oaken Online Banking. This service is very easy to use, and provides a secure and convenient method of staying on top of your GICs. It employs multiple layers of security, and we even protect you against loss in the (extremely unlikely) event of an unauthorized transaction.

When you go to our Online Banking, you’ll find all your GICs neatly organized by type: non-registered, RSP, TFSA and RIF. And with a simple click of your mouse you can order them all by maturity date, to see what’s coming up for renewal. It’s a great tool for managing your personal finances that’s convenient, easy-to-use and—above all—safe and secure.


Summer reads

Summer is all about light reading, and who are we to change that? A few easy pieces before you head out to the barbeque…

 

This post is intended for informational purposes only. It is not to be considered financial advice. Always do your research before making any investment decisions.

6 thoughts on “RIF withdrawals—new changes starting in 2016

  1. When will I be able to access my commercial account online?
    It was originally May, then June, then July?

    1. Hello Mel Buksner,

      Commercial online account is now available. Please visit our website for further details.

      Thank you.

  2. I know you have heard this many times before but still would like to see you offer a basic TF savings account. Just seems a huge gap in your product mix.

    1. Hello Paul Griffin,

      In regards to the basic TF Savings account, Oaken Financial is not in the position to offer this product in the near future. We understand other Financial Institutions are offering this product, but at this time we only offer our 1 to 5 year terms.

      Thank you,

  3. After reading a comment from a Paul Griffin and your subsequent reply to him in regards to offering a basic TF Savings account , your reply to him appears to differ from what I was told when I asked the same question several months ago. At that time your response was that Oaken Financial had in their pocket of to do things many new products, one of which was to launch a TF Savings account slated for sometime in 2016. Has this now been put on the back burner?

    Reply

    1. Dear Mr. Boulanger,

      The TFSA savings account is still on our product roadmap. Unfortunately, we cannot confirm a date.

      Thank you.

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