You’ve worked hard to accumulate your wealth. But just because you are tapping into your assets does not mean you have to tap them out. RBC Managed Payout Solutions can provide the cash flow you need today, while helping to manage the impact to your capital.
Sustainable cash flow
Distributions are reviewed annually and adjusted, if necessary, to provide sustainable and predictable cash flow.
Flexibility and liquidity
Investors have access to their money should unexpected needs arise.
Tax-efficient payouts
Diversification of cash flow sources can result in higher after-tax cash flow relative to investments that pay only interest income.
Growth potential
Equity exposure increases the potential for capital appreciation and helps keep pace with inflation over the long term.
Choice of payout rates
Investors can choose the payout level that fits their lifestyle goals (with 5%, 6% or 7% payout options).
Payout level
How much income do you need to cover day-to-day living and lifestyle expenses?
Payout stability
Can you accept changes, either increases or decreases, in your annual payouts?
Maintenance of principal
Are you willing to erode your initial investment for higher payouts?
| RBC Managed Payout Solution | RBC Managed Payout Solution – Enhanced | RBC Managed Payout Solution – Enhanced Plus | |
|---|---|---|---|
| Payout Level | 5% | 6% | 7% |
| Maintenance of Principal | Best | Better | Good |
| Payout Stability | Best | Better | Good |
| Tax Efficiency | Good | Better | Best |
The monthly payout (in cents per unit) is a product of multiplying the payout rate by the year-end net asset value (NAV) per unit and dividing by 12. The monthly payout in cents/unit is reset at the beginning of each calendar year. Payout rate may change to reflect market conditions and should not be confused with mutual fund performance or rate of return.
Return of capital and your adjusted cost base
Return of capital (ROC) is a payout from an investment that represents the return of the investor's capital to them by way of a distribution. ROC is used to help generate predictable, monthly cash flows in a tax-efficient manner. A portion of distributions from RBC Managed Payout Solutions may be ROC. Watch the following video to learn more.
This has been provided by RBC Global Asset Management Inc. (RBC GAM) for informational purposes only and may not be reproduced, distributed or published without written consent of RBC GAM. It is not intended to provide legal, tax, investment, or financial or other advice and such information should not be relied upon for providing such advice. RBC GAM takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when provided, but no representation or warranty, express or implied, is made by RBC GAM, its affiliates or any other person as to its accuracy, completeness or correctness. Information obtained from third parties is believed to be reliable but RBC GAM and its affiliates assume no responsibility for any errors or omissions.
To learn more about RBC Managed Payout Solutions, speak to an advisor.