There is one additional advantage to systematically monthly over annually. It is called Dollar Cost Averaging. Market values are constantly changing, one they are up another day they are down. The term applied to programs usually associated with Mutual, Segregated Funds, or RRIFs that the investor initiates, to create regular flow of income , monthly, quarterly, semi-annually or yearly. We can help our clients structure a SWP to suit their income needs.
Traditional annuity is like a mortgage in reverse.
In the early years the bulk of any payment is interest and thus that larger portion attracts tax. With the consent of Revenue Canada, a prescribed annuity is structured so that the level of the tax liability is fixed from the first to last at the same level. A terrific tax planning tool. We can not only arrange for a prescribed annuity but we can shop the market for the best rate. Maintaining that balance in shifting market conditions and shifts in client's circumstances is the essence of Portfolio management.