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Six questions to ask yourself if you’re considering an annuity Add to ...

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She’s a single woman in her early 70s who is looking just ahead to converting a sizeable six-figure RRSP into a RRIF. Her question: Should she convert half that registered money to an annuity?

This woman manages her investments herself and has the money in blue-chip dividend stocks (these days, who doesn’t?). Dividends paid by her stocks are her only source of income, aside from the Canada Pension Plan and Old Age Security. She has no dependents and is mortgage-free, although she has a car loan. To answer the question of whether an annuity makes sense, I suggest she work through these six questions.

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