Are you one of those investors who doesn’t mind risk inside your registered plan, RRSP, or RRIF but want the money that you have outside of your RRSP to be safe and liquid? Several retirees I have seen have made this common mistake. They are generating capital gains income inside their tax-sheltered plan and interest income, fully taxable, each year outside their tax-sheltered plan. If the investments

were switched–meaning no additional risk, just different positioning–it would save taxes today and every year in your retirement. Look at making a simple switch and consider swapping assets if you’re in

this situation. Talk to your advisor and or tax professional before proceeding.

Here is another tax-saving income idea to consider. Set up a withdrawal program. You can use those funds for income, or you can reinvest that income into more conservative investments, such as fixed income or bond funds, to protect your capital.

How about a tax-efficient A-SWP? A-SWP investors enjoy a high level of monthly cash flow and, perhaps, a reduced tax bill in the short term. We did this with Keith, a retiree in Leamington. He had a balanced fund that was not performing well. While he wanted less risk, he didn’t want to change all of his investments at this time. We set up a tax-advantaged A-SWP that pays Keith monthly, and we invest monthly into a bond fund to increase the bond holdings in his portfolio. Over time his bond holdings

will increase and make his portfolio more conservative. Keith will want to take the income in the future, but for now he wants to try to preserve his capital in his retirement.

If you’re looking for ways to make your portfolio more conservative, or for retirement income, here is one idea: Do it over a period of timeinstead of all at once.