RSP Maturity Options
If you are approaching the time when you have to convert your RSP, you have an important decision to make.
You have three basic options:
1. Deregister your RSP, pay the tax and receive the net value of the RSP in cash or in securities. This option is often the least attractive, as it has the potential for a big tax hit.

2. Purchase an annuity, which provides ongoing, guaranteed income for as long as you live. However, if you purchase an annuity when rates are low, you are generally locked-in at that low rate for life.

3. Convert your RSP to a RIF. A RIF offers you the ability to invest in the same wide range of investments as your RSP. Plus, your assets are transferred tax-free from your RSP, and continue to grow on a tax-deferred basis.

There's a minimum amount you must withdraw every year, but you can withdraw larger amounts to reflect your current situation. For example, if you have alternative sources of income, you can draw upon them first, and just take out the minimum from your RIF. This optimizes your RIF's tax-deferred growth. And if your other sources of income dry up, you can start drawing more income from your RIF.

Remember, you must convert your RSP by the end of the calendar year in which you turn 69.

Maturity options for Locked-in RSPs

If you have a Locked-in RSP, you can choose a life annuity or a Life Income Fund (LIF). A LIF provides the same benefits as a RIF, except there is an annual maximum withdrawal limit and in some provinces it must be converted to an annuity in the year you turn 80.

However, if you choose a life annuity, you can't switch to a LIF. Some provinces also have an option called a Locked-in Retirement Income Fund (LRIF). The LRIF is similar to the LIF except that it doesn't have to be converted to an annuity at age 80 and the annual maximum withdrawal limits are different.

The province of Saskatchewan has a Prescribed Retirement Income Fund (PRIF) that is even more flexible than the LIF or LRIF. The PRIF is similar to the RIF in that there is a required minimum annual withdrawal but there is no maximum annual withdrawal limit.

This article is supplied by Sangita Sindhwani, an Investment Advisor with RBC Dominion Securities Inc., which is a member company under RBC Investments. Member, CIPF.

Doctor Issues Heart Disease Advisory For South Asians
Original Publication Date: Saturday, January 29, 2005
Now it's more or less certain that if you're of South Asian origin then it is never too early for a heart check up. The coronary diseases are abnormally high among the immigrants of South Asian origin. This may have something to do with the 'good living' as we consume more without expending any energy. Because, even in India studies have shown that the heart disease is a serious concern among urbanized Indians. The findings will most probably be true of people from the neighbouring countries like Pakistan and Bangladesh.

Of late, public and professional agencies have gone on the offensive trying to convert people to switch to more heart friendly lifestyle, by eating right to start with. However, experts say an increased intake of fruits and vegetables alone may not be sufficient for avoiding heart diseases. Neither is it enough to just eat fish, it's important how you eat that fish. Fish-eaters need to increase intake of grilled or baked fish to 2-3 times a week and vegetarians need to consume food with omega-3 fatty acids such as rajma, lobhia and black gram that many times every week.

Diet and exercise advisories are taking on a new significance due to the increased risk of heart disease, diabetes and hypertension. Indians are now confirmed to be at a greater risk of these diseases.

Anoop Misra, Professor of Medicine at the All-India Institute of Medical Sciences (AIIMS), says Indians have a higher tendency to develop syndrome X and diabetes at a lower weight.

Due to a genetic predisposition, urban Indians already suffer from an extremely high load of obesity, syndrome X, diabetes and coronary heart disease.

However, faulty diets and an increasingly sedentary lifestyle are contributing to an increase in all these diseases.

Deaths due to heart disease alone in India are projected to increase by 61% - from 1.59 million in 2000 to 2.58 million by 2020. Misra recommends six dietary modifications and 60 minutes of exercise six days of the week for preventing these diseases among South Asians.

* Increase food with fibre such as wheat atta, porridge, oats, jowar and whole pulses.
* Increase other items with omega-3 fatty acids: Grilled or baked fish; 2-3 times/week, rajma, black gram, lobhia, and baked beans;
* Increase other items with MUFA: Soy products, nuts (restricted quantity): Almonds, walnuts, peanuts;
* Use low cholestrol cooking oils.
* Avoid saturated fats, sugars and vanaspati;
* Walk for 40 minutes, including 30 minutes of brisk walk. Include 10 minutes of resistance exercises with light weights.

Cold medicines may be too strong for seniors: geriatrician
Original Publication Date: Saturday, January 29, 2005
Last Updated Fri, 28 Jan 2005 21:30:22 EST. CBC News
VANCOUVER - As cold sufferers turn to over-the-counter medications to relieve their symptoms this winter, some older Canadians are finding the treatments do more harm than good. The pills can dry a runny nose, soothe itchy eyes and calm a hacking cough, but many of these products contain powerful ingredients.

The drugs pack an extra punch for seniors who metabolize drugs more slowly than when they were younger. A few weeks ago, Nick Ciolfitto, 66, popped a pill to fight his cold. Within hours, his bladder shut down, he couldn't urinate and he ended up in emergency.
"I wasn't even thinking that this medication was causing this problem," Ciolfitto recalled.
Doctors said they're seeing a lot of patients like Ciolfitto at emergency. "It can lead to confusion," said Dr. Graydon Meneilly, a geriatrician at Vancouver General Hospital. "It can lead to constipation. It can impair bladder contractability. It can do all sorts of things." Meneilly said drug companies should spell out the risk to seniors in warnings on the box.

In Canada, there are no uniform standards for warnings on cough and flu medications. It may seem like the Wild West, where some manufacturers decide to include a warning, while others don't. "It doesn't reflect a Wild West environment," said Gerry Harrington of the Non-Prescription Drug Manufacturers' Association of Canada. "It means there are manufacturers out there who go beyond the regulated requirements."
Health Canada doesn't track how many adverse reactions are caused by the pills, because people often don't report them. Geriatricians recommend those over 60 steer clear of the medications.