Question: Sandy collects OAS and CPP. In addition, she is about to transfer her RRSP to a RRIF so she can withdraw what she needs as

  1. Sandy collects OAS and CPP. In addition, she is about to transfer her RRSP to a RRIF so she can withdraw what she needs as she needs it. She thinks she has the discipline to save any amount she is required to withdraw that she does not consume. Her financial advisor suggests that she buy a life annuity instead. How can Sandy set things up so she is dealing with her own money illusion?
    1. Buy an indexed annuity.
    2. Set aside 5% of everything she receives from the annuity to provide a cushion later.
    3. Buy a real annuity if she can find one in Canada.
    4. All of the above can help her face her own money illusion.

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