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Benefits are taxable, adjusted for inflation, and "clawed back" in increasing amounts as your individual net income climbs above a threshold amount. 16 + WATERLOO CHRONICLE + Wednesday, March 12, 2008 By knowing what those sources areâ€" and the different options available to you â€" you may be able to pay less tax and help ensure your income will be sufficient to fund your retirement dreams. The government * Old Age Security (OAS) monthly benefits usually begin at age 65. *The Canada Pension Plan/Quebec Pension Plan (CPP/QPP) is intended to provide about 25 Whem will your retirement paycheque come from? Most likely, it will be made up of income from a number of sources. **trss*sce@resersserssecesssesrrcsrscernceecnnsencenneseneccensenesesscscsssce cssc e se nsc se se s enc esc s ces es e es es es es se s e0 6 MEMORY FOAM _# Posture Rest queen set $+599°° It pays to know about retirement income options Perfect Contour 608 Continuous coil _ Perfect contour 720 Continuous coil _ Perfect Contour 864 Chiroâ€"Guard"*" with Power Edge*" with Power Edge*"* Ultra Premium with Power Edge*"*" The OVERSTUFFED/UNDERPRICED Mattress Collection from Comfort Solutions. SAVE $100.00 eocssscccssc@scescceesns 6606080066 a 606 s 0e 0e e 6e se en 6e 8e 0s es 4 se s e e 80 8 s 8 e 8 e 0 0 00 60 60 60 0 MEMORY FOAM _ Posture Crown queen set ‘699"°...... s7999 RUSS McEACHNIE Your company * Defined Benefit (DB) pension plans "define" or guarantee a specific pension paid to you for your lifetime from the time you retire. The amount of your DB pension benefit is set accordâ€" ing to your age, length of service and your salary and may or may not be indexed to inflation. * Defined Contribution (DC) pension plans, also known as money purchase plans, do not guarantee the amount of your future benefits. DC retirement income depends on accumulated contributions and the investment returns per cent of your average annual earnings during _ earned by these contributions. your working life up to certain limits. Benefits are indexed annually for inflation and are taxable. You Benefits can start as early as age 60. When you retire, your Regis Pillow Luxury LATEX FOAM MEMORY FOAM SAVE $200.00 Each article will cover relevant and pfgcdml issues that concern you, the smallâ€"business owner.‘If you have any questions that you would like discussed in future articles, please email meber@city.waterlofion.# *~" Then get some experience by working for a period of time, even voluntarily, in a similar genre of restaurant to the one you envision opening. R _ Remember, there is no substitute foréxperience. This is the first in a continuing series of articles written with the new smallâ€"business owner in miind. > + If it is an area that you know something about, and have enjoyed doing, you stand a much better chance of both sucâ€" ceeding at it, and being happy. If you want your meal to turn out successfully (not overcooked, or underseasoned, etc.), you are best to stick with something you are familiar with. _ Something you have cooked before and had your guests affirm your abilities to cook this meal by finishing everything on their plate, and perhaps even finding them asking for seconds! So if you want to find success in starting your small busiâ€" ness then choose something that you are familiar with. It could be something from a past work experience, a special interest pastime, or even something you have done on a volâ€" unteer basis. It doesn‘t get much better than that. For example, your passion may be to open an upscale restaurant, but you have never worked in the business before. thought I would begin this new series that focuses on the Isuccess factors and best practices of launching and developing a small business on an often overlooked, yet essential point. The question I get asked quite frequently by clients is, What business should I go into? MEecinectentedinteririe th en preame There is no standard answer to o this question. hat Jn The answer depends completely on the person asking. You see, starting a business is like preparing a meal. * Cash â€" by converting your RRSP to cash you will be subâ€" ject to tax on the entire amount. This is not an attractive option in most cases. The choices you make about the size and shape of your retirement paycheque are yours, and they will play a vital role in generating the retirement income you can expect to receive. A professional advisor can help you understand all your sources of retirement income and build a plan to help your retirement dreams come true. * A Registered Retirement Income Fund (RRIF) is similar to an RRSP except you withdraw from it instead of contributâ€" ing to it. RRIFs offer the flexibility of selecting from a wide range of investment choices and choosing the amount of taxâ€" able income you wish to withdraw each month (subject to an annual minimum withdrawal based on the value of your RRIF and your age). * An annuity offers the simplicity of guaranteed lifetime taxable income in set amounts that can‘t be increased to compensate for inflation or escalating living costs. When you retire, your Registered Retirement Savings Plan (RRSP) can be converted to income in three ways. This column, written and published by Investors Group Financial Services Inc., presents general information only and is not a solicitation to buy or sell any investments. Contact > Russ McEachnie CFP. CSA, CDFA at 519â€"886â€"2360, ext. 241 or email him at russell.mceachnie@investorsgroup.com. Roy Weber i&the business advisor for the Waterloo Region Small Busiribss Centre, located at Wateiloo City Hall, 100 Questions of local smallâ€"business owners answered in new series