With Canadians expected to live longer and potentially enjoy 20 to 30 years in retirement, finding a way to generate income over the long term is critical. RBC Managed Payout Solutions can provide the cash flow you need today, while helping to manage the impact to your capital.
Investing to create income is different from investing to build up your savings. RBC Managed Payout Solutions provide tax-efficient monthly cash flow from your investments. They also help manage the impact of market movements on your capital to help make your money last.
If you want to learn more on how RBC Managed Payout Solutions can help you create a tax-wise cash flow, watch this video.
Tax-efficient cash flow
Diversification of cash flow sources helps generate greater tax efficiency.
Steady monthly income
Get predictable monthly payouts for your regular spending needs.
Prudent annual adjustments
Payout levels are reviewed every year and adjusted, if necessary, to help make your money last.
What you keep matters:
How taxes affect $1,000 of investment income from different sources
*Represents eligible Canadian dividends with a federal tax credit of 15%. Illustration uses 2023 tax rates for an individual earning ordinary income of $100,000 and resident in Ontario. Assumes a marginal tax rate of 33.9%. ROC distributions are not taxable in the year they are received, but do lower your adjusted cost base, which could lead to a higher capital gain or a smaller capital loss when the investment is eventually sold. Income shown for RBC Managed Payout Solution (Series A) has a distribution breakdown of 24% interest, 20% capital gains, 13% Canadian dividends, and 43% ROC. Please note that tax rates are unique to the circumstances of each individual and province they live in.
Return of capital (ROC) is a payout from an investment that represents a portion of your money coming back to you. ROC can be used to help create predictable, tax-efficient monthly cash flow. Watch this video to learn more.
Illustration shows cashflow of RBC Managed Payout Solution - Series A from December 31, 2013 to December 31, 2023. Cash distributions in excess of earnings reduce the asset base of the Fund and can hinder the Fund's ability to meet its investment objectives.
This is the strategic asset mix for each fund. Allocations may be tactically adjusted based on the views of the RBC GAM Investment Strategy Committee and the RBC GAM Investment Policy Committee. Payouts, cash flow, and distributions should not be confused with mutual fund rates of return.
To learn more about RBC Managed Payout Solutions, speak to an advisor.