3 Personality Traits and DB Pension Plan Commuted Values
When an individual makes the decision to take the Commuted Value of their Defined Benefit Pension Plan, they have decided to have a plan which pays themselves an amount equal to the guaranteed monthly payment they would have received from staying in the plan. This is HUGH undertaking with many possible benefits, but definitely not suitable for the following personality types:
The Big Spender: This individual likes spending money and may not have always been the best saver. A Commuted DBPP value could mean 1 - 3 million dollars instantly in your own investment accounts. EASY ACCESS and easy to make large withdrawals.
The Gambler: Any gambling or risk-taking characteristics are a definite negative.
The Lottery Player: A Commuted DBPP value could be treated like winning the lottery, and EASY COME, EASY GO!
We carefully review all investment scenarios and individual risks when discussing Commuted values. Taking the Commuted DBPP value could be a very good strategy for one individual and not advised for the next individual.
Thank you and Enjoy your day.
National Bank Financial – Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF Inc.), as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF Inc. NBF Inc. is a member of the Canadian Investment Regulatory Organization (CIRO), the Canadian Investor Protection Fund (CIPF), and a subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX:NA).Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction. This information is intended only for residents that reside in the provinces of Alberta, British Columbia, Ontario, Manitoba and Saskatchewan. NBF is not a tax advisor, and clients should seek professional advice on tax-related matters, including their personal situation. Please note that comments included in this letter are for information purposes only and are not intended to provide legal, tax or accounting advice. The comments reflect the opinion of their author and may not reflect the views of NBF. The information contained herein has been prepared by Jim Whitehouse, a Senior Wealth Advisor and Portfolio Manager at NBF. Insurance services and products are provided by National Bank Insurance Firm (NBIF). NBIF is not a member of Canadian Investor Protection Fund, and the products sold or provided by NBIF are not guaranteed by the Canadian Investor Protection Fund.
