Paul played 13 NHL seasons between 1985 and 1998. He spent most of his time playing in the States, but also played a few seasons in Canada. Paul had questions about his NHL retirement plan and the options for accessing his benefits. He and his wife Jennie reached out to numerous advisory firms, but they were unable to find anyone with the hockey specific knowledge and willingness to help.
They were unsure of the following rules and concerns:
- How will cross-border tax laws apply given the teams Paul played for, where our tax residency was at the time of playing, as well as where we currently reside?
- Given we currently live in the U.S., will an extra 10% penalty be assessed if taking payments before the age of 59.5?
- Will our benefits cover us for the rest of our lives?
The NHL retirement plan prior to 2012 is complicated, and the benefits are unique to each player. Fortunately, NHL Alums like Paul have options when it comes to their retirement.
Eventually, Paul and Jennie came across a firm that understood both the old and new NHL retirement plans. The group was able to explain Paul’s unique benefit options, and help their family make an informed and educated decision about accessing those benefits in a tax-conscious manner.
- Paul & Jennie understood their options and their advisors helped them communicate their plans with the Pension Society.
- A financial plan was created to solve both their short and long-term needs.
- Minimized tax liabilities.
- Implemented a dynamic withdrawal strategy that safely increased their income in retirement.
- Newfound convenience and confidence of having their new advisory group one phone call away for any financial needs that arise in the future.
Paul and Jennie felt like a huge weight had been lifted off their shoulders. They were able to cover some short-term obligations, fund new business plans, and now have confidence in their long-term financial future.