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TB MONEY MATTERS I'M QUITTING. SHOULD | KEEP MY PENSION OR TAKE A LUMP-SUM PAYOUT? CLARRIE FEINSTEIN clarriefeinstein@torstar.ca You've made the diffi- cult decision to leave your Nb. But another decision re- mains. Do you keep your pension intact or take a lump-sum payout? If you decide to keep the pension, you may be able to transfer it over to your new employer's persion plan i in some cases. Or leave your pension. ‘in yout old employer's plan and collect money from more than one pension when you retire. Taking a lump-sum payout allows you to get paid a single amount up- front to invest as you wish, but it will be taxed — heavi- ly — if you don't have it de- posited directly into locked-in retirement ac- count (LIRA) or locked-in Registered Retirement Savings Plans (RRSP). Malcolm Hamilton, a re- tired actuary, says the deci- sion depends on your age and whether you're com- fortable managing your own money. "Young people will take the payout," he says. "When you're younger, a pension is decades away. It's differ- ent for someone whose pension might start next you're in your 50s and your deferred pension can start at 55, Hamilton says your earned pension amount will be more sub- stantial. Having a guaran- teed income in your retire- ment years will be the more attractive option. While lump-sum pay- ments can give you more control over your money, if you're not good at manag- ing your finances, keeping your pension intact is the safer bet. "If ‘you don't know pow to invest your money or you don't have an adviser you trust, you won't makea good return on the payout no matter what you do," Hamilton says. A payout is also valu- able if you leave a job due to health reasons. you're unlikely to live a tone life and you may die before you see the pension payments, then it's best to take the payout," he says. SIGN UP FOR OUR WEEKLY NEWSLETTER AT THEIFP.CA CARPET, HARDWOOD, RUGS & TILE FE carrer panne carrer one Floor and Home The One Store For Your Perfect Floor 26 Gi town Georgetown www.carpetone.< hittp:/carpetonegeorgetown. goldbook.ca Movers and Shakers Marketplace To advertise in this full colour directory please call Kelli 905-873-7162 or email kkosonic@theifp.ca WINDOWS &S IDING ‘Since 1985 905-87 Li 9896 af 8 3 873- 0841 www.winside.ca R ESTATE DIRECTORY {416) 414-6676 npaget@normpagetca Norm Paget sales representative Harp Gill thee Hi Homie 905-877-5211 info@meqwinteam.com | Meawacooxs Jan McKEOWN: lesrepresentative Don't forget when your list your property with the MCQWIN TEAM you also get 3 months free If you would like your ad included in the Real Estate Directory please contact kkosonic@starmetrolandmedia. com or call DEMAND THE DYMOND STANDARD REALTY SERVICES INC., BROKERAGE www.PeterDymond.com CANADA'S ROYAL LEPAGE 324 Guelph Street, Georgetown ON L7G 4B5 Direct: 905.866.8766 Office: 905.877.8262 in-town Storage facility. www.sherylpaglia.ca (iProRealty Teroneaity B Stoyles svuca nePteserve DIRECT: (905) 866-8923 OFFICE: (905) 873-6111 ‘arate PROT Peter Zavitz 905-877-8262 www.PeterZavitz.com ¥ sag 3 ? 3 é Fy = Zz0z ‘8b asnBny ‘Aepsinyy, | eordyouy