Withdrawing from RRSPs before age 71?
Results 1 to 10 of 90

Thread: Withdrawing from RRSPs before age 71?

\r\n
\r\n
\r\n
\r\n \r\n
\r\n OnlyMyOpinion\r\n \r\n
\r\n OnlyMyOpinion is offline\r\n\r\n \r\n
\r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
\r\n
\r\n
Join Date
Aug 2013
\r\n \r\n \r\n
Posts
1,920
\r\n \r\n
\r\n \r\n \r\n \r\n \r\n
\r\n \r\n
\r\n
\r\n \r\n \r\n\r\n\r\n \r\n \r\n
\r\n
\r\n
\r\n
\r\n
\r\n
\r\n
\r\n \r\n
\r\n Quote Originally Posted by GreatLaker\r\n View Post\r\n
\r\n
If a retiree has non-registered assets, withdrawing from those accounts will most likely be more tax effective. RRSP/RRIF withdrawals are taxed at full marginal rate. In non-registered accounts, dividends are taxed significantly less. And capital gains are taxed at half the rate on the gain only. So spending from non-registered assets means lower taxes therefore more left in the accounts to compound.
\n
\nThe complication comes in the year you turn 72 when mandatory RRIF withdrawals start, which can bump up the tax rate significantly (in my case I expect to jump up 3 tax brackets and my marginal tax rate will increase 50%). Plus if your net income is over the OAS clawback threshold, you get taxed at 15% on income over the threshold.
\n
\nSo the trick is to choose which accounts to spend from when, to optimize taxes and maximize your estate value. Withdrawing some funds from RRSP or RRIF before age 72 may do that by paying more tax earlier but less later.
\n
\nIf all your savings are in tax-deferred accounts it\'s not an issue. It really depends on individual circumstances as you can see from the varied analysis by different posters.
\r\n \r\n
\r\n
\r\n
To avoid the age 72 complication that you note (a jump in income as non-reg is joined by RRIF income), our current plan is to live off of our CPP (taken at 60) plus non-reg assets until age 72, then dispose of them (gift them), and be left with our RRIFs, CPP (OAS?), TSFA and home as assets for the balance of our life. We\'re at early 60\'s. Part of the plan includes crystalizing non-reg gains/losses over the next few years. Current spending and income projections support the plan. We can \'tweak\' it if necessary.
\n
\nRe/ capital gains, I guess we\'ll know next week whether the Liberal Feds plan to take more of our money.\r\n
\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
\r\n
\r\n \r\n
\r\n \r\n \r\n
\r\n \r\n Last edited by OnlyMyOpinion; 2017-03-17 at 07:37 PM.\r\n \r\n \r\n
\r\n \r\n \r\n \r\n \r\n \r\n \r\n
\r\n \r\n
\r\n
\r\n
\r\n
\r\n -' + '->\r\n
\r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
\r\n
\r\n
\r\n\r\n'; pd[1510946] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #2\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n If all your savings are in tax-deferred accounts it\'s not an issue. It really depends on individual circumstances as you can see from the varied analysis by different posters.\r\n \r\n
    \r\n
    \r\n
    Yes, majority of my saving in tax-deferred accounts, in non-reg I have only GIC/HISAs, as per today value interest I get is about $7,000
    \nIf I switch SRRSP to SRRIF is 2 years, my RRIF minimum (at current market value) will be $7,000 and if I switch also RRSP to RRIF , RRIF minimum will be $4,800 ....
    \nThus, as per calculator,
    \r\n
    \r\n
    \r\n
    \r\n \r\n You\'ll owe about $1,543 in tax: $1,099 in federal tax and $444 in provincial tax. Your after-tax income is $17,257. Your average tax rates are 8.21%\r\n \r\n
    \r\n
    \r\n
    If I switch both to RRIFs at age 60, my minimums will be $8,957 + $6,109, + $7,000 interest from GIC/HISA
    \n
    \r\n
    \r\n
    \r\n
    \r\n \r\n You\'ll owe about $2,198 in tax: $1,589 in federal tax and $609 in provincial tax.
    \nYour after-tax income is $19,868. Your average tax rate are 9.96%\r\n \r\n
    \r\n
    \r\n
    + more taxes if I start getting CPP.
    \n
    \nIf I switch both to RRIFs at age 65, my minimums will be $10,749 + $7,331, + $7,000 interest from GIC/HISA
    \n
    \r\n
    \r\n
    \r\n
    \r\n \r\n You\'ll owe about $2,802 in tax: $2,041 in federal tax and $761 in provincial tax.
    \nYour after-tax income is $22,278. Your average tax rate are 11.17%\r\n \r\n
    \r\n
    \r\n
    + more taxes if I start getting CPP/OAS.
    \n Thus, from what I understand, the best case scenario is to start RRIFs at 52.... or am I missing something?\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511306] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #3\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Oldroe\r\n \r\n
    \r\n Oldroe is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Sep 2009
    \r\n
    Location
    Ont.
    \r\n \r\n
    Posts
    1,037
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n Can you move in kind from srrsp to sriff.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511314] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #4\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n pwm\r\n \r\n
    \r\n pwm is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n pwm\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jan 2012
    \r\n
    Location
    Headingley MB
    \r\n \r\n
    Posts
    646
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by Oldroe\r\n View Post\r\n
    \r\n
    Can you move in kind from srrsp to sriff.
    \r\n \r\n
    \r\n
    \r\n
    Yes. No need to sell anything, just transfer the contents of the RRSP to the new RRIF.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511418] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #5\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n OnlyMyOpinion\r\n \r\n
    \r\n OnlyMyOpinion is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Aug 2013
    \r\n \r\n \r\n
    Posts
    1,920
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    Yes, majority of my saving in tax-deferred accounts, in non-reg I have only GIC/HISAs, as per today value interest I get is about $7,000... Thus, from what I understand, the best case scenario is to start RRIFs at 52.... or am I missing something?
    \r\n \r\n
    \r\n
    \r\n
    Gibor, You may already have all this sorted out, and I\'m not suggesting you post it all.
    \n
    \nWhat may be missing are:
    \ni) the balances remaining in your non-reg and rrsp/rrif accounts over time, depending which scenario you choose,
    \nii) what total income you require and what % each of these income streams represent,
    \niii) how long you need this income
    \niv) other inc streams, tsfa assets, house, etc.
    \n
    \nI\'m just saying that we can\'t really comment in a meaningful way with only the income streams you list. As GL noted, it really depends on each individual\'s circumstances.
    \n
    \nFrankly, the difference between paying $1.5k of tax at age 52 versus $2.8k at age 65 doesn\'t seem a compelling reason to make an irreversabe switch to rrifs at age 52 unless it is all part of a well considered plan.
    \n
    \nFor example, if you start rrifs at age 52 you will compromise their tax-sheltered growth and have reduced amounts remaining at age 60, 65, or 72 - is this baked into your numbers? And if you draw $7k a year from your non-reg beginning at age 52, how much will be left at age 60 or age 65 and how long will it last? - you show $7k/yr still from non-reg). If you draw $14k instead and leave rrsp\'s untouched what is the result? Alternatively, if you take more from rrifs and leave non-reg untouched, etc .....\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511538] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #6\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n My Own Advisor\r\n \r\n
    \r\n My Own Advisor is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n My Own Advisor\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Sep 2012
    \r\n
    Location
    Ottawa
    \r\n \r\n
    Posts
    4,920
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n Have folks played with this or used something similar?
    \nhttp://www.taxtips.ca/calculators/rr...calculator.htm
    \n
    \nI played with the numbers assuming $500k to start, at age 60 with 6% ROR to withdraw $30k annually. Money seems to last until 93/94.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.
    \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511562] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #7\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n pwm\r\n \r\n
    \r\n pwm is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n pwm\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jan 2012
    \r\n
    Location
    Headingley MB
    \r\n \r\n
    Posts
    646
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n That\'s a good one. I created a similar Excel spreadsheet for myself that resembles it, but includes my wife\'s RIF in the calculations. Mine is not as pretty as the taxtips one but the numbers compare. Not very hard to build really, and I have lots of time on my hands.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1512538] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #8\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n Gibor, You may already have all this sorted out, and I\'m not suggesting you post it all.\r\n \r\n
    \r\n
    \r\n
    OnlyMyOpinoin, I have just plan and I\'d like to know if I miss something in my estimations
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n Frankly, the difference between paying $1.5k of tax at age 52 versus $2.8k at age 65 doesn\'t seem a compelling reason to make an irreversabe switch to rrifs at age 52 unless it is all part of a well considered plan.
    \r\n
    \r\nFor example, if you start rrifs at age 52 you will compromise their tax-sheltered growth and have reduced amounts remaining at age 60, 65, or 72 - is this baked into your numbers? And if you draw $7k a year from your non-reg beginning at age 52, how much will be left at age 60 or age 65 and how long will it last? - you show $7k/yr still from non-reg). If you draw $14k instead and leave rrsp\'s untouched what is the result? Alternatively, if you take more from rrifs and leave non-reg untouched, etc ....\r\n \r\n
    \r\n
    \r\n
    $7K from non-reg is only annual interest , I don\'t intent to withdraw this money , maybe some small portions , but definitely not 7K per year.
    \r\n
    \r\nI also will not really miss RIFFs " tax-sheltered growth", as my wife (who has high income) will open new Spousal RRSP and will be contribution annually 6-7K (all room left after her pension adjustments) - thus I will pay on my income very small tax (very low tax bracket) and my wife will pay much less taxes es she is in the highest possible bracket.
    \r\nI also intend first to withdraw from RRIFs cash portion that give me only 0.75% interest, this cash I can deploy in non-reg HISA and get at least 2% interest.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511626] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #9\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n steve41\r\n \r\n
    \r\n steve41 is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Apr 2009
    \r\n
    Location
    Hornby Island in the Straight of Georgia
    \r\n \r\n
    Posts
    1,683
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by My Own Advisor\r\n View Post\r\n
    \r\n
    Have folks played with this or used something similar?
    \n
    \nI played with the numbers assuming $500k to start, at age 60 with 6% ROR to withdraw $30k annually. Money seems to last until 93/94.
    \r\n \r\n
    \r\n
    \r\n
    $500K starting at age 60 (6% ROR and 2% inflation, living in BC) results in a $36.8 K lifestyle, dying broke at age 95.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1512554] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #10\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n My Own Advisor\r\n \r\n
    \r\n My Own Advisor is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n My Own Advisor\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Sep 2012
    \r\n
    Location
    Ottawa
    \r\n \r\n
    Posts
    4,920
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n @Steve, thanks as always. Your software is probably more accurate.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.
    \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1512890] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #11\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n redsgomarching\r\n \r\n
    \r\n redsgomarching is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2016
    \r\n \r\n \r\n
    Posts
    229
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n Going through this with my mom who plans to retire at 55. Has around 600k In her RRSP at this moment. Will get a pension from work, oas, cpp, etc. Basically, to minimize her tax burden she may as well deplete her RRSP starting as soon as she retires without converting to a RRIF.
    \n
    \nFigure she would take out 30k per year, 9k in withholding tax, her marginal rate would be minisicule on 30k and she would most likely get around a 6k refund. therefore nearly 3k in taxes. She can do this until she has depleted this and take her work pension when she gets old enough (70) and this way she can minimize taxes during those years nearly would be less than 10% overall tax she would be paying + income from her TFSA which she can generate and this would allow her to minimize her tax burden later on when she receives her pension from work + cpp and oas and minimze the OAS clawback.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1513266] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #12\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n My Own Advisor\r\n \r\n
    \r\n My Own Advisor is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n My Own Advisor\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Sep 2012
    \r\n
    Location
    Ottawa
    \r\n \r\n
    Posts
    4,920
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n @reds,
    \n
    \nWow, seems like your mom is in great shape depending upon expenses = 1) $600k RRSP + 2) workplace pension + 3) CPP + 4) OAS.
    \n
    \nBefore tax I would assume conservatively 1) $30k + 2) $20k (?) + 3) $5k + 4) $5k.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.
    \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1513354] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #13\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n redsgomarching\r\n \r\n
    \r\n redsgomarching is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2016
    \r\n \r\n \r\n
    Posts
    229
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by My Own Advisor\r\n View Post\r\n
    \r\n
    @reds,
    \n
    \nWow, seems like your mom is in great shape depending upon expenses = 1) $600k RRSP + 2) workplace pension + 3) CPP + 4) OAS.
    \n
    \nBefore tax I would assume conservatively 1) $30k + 2) $20k (?) + 3) $5k + 4) $5k.
    \r\n \r\n
    \r\n
    \r\n
    she is pretty set yeah, and not to mention the house, etc. my parents did really well in terms of planning for the future and utilized what they worked so hard for.
    \n
    \ni am glad that she will be able to enjoy herself. she has worked full time 25 years + and raised 4 kids while my dad worked his ass off to build his business.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1513953] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #14\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n Going through this with my mom who plans to retire at 55. Has around 600k In her RRSP at this moment. Will get a pension from work, oas, cpp, etc. Basically, to minimize her tax burden she may as well deplete her RRSP starting as soon as she retires without converting to a RRIF.\r\n \r\n
    \r\n
    \r\n
    She can also deplete her RRIF with converting RRSP to RRIF abd saving on redemption fees\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1513993] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #15\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n redsgomarching\r\n \r\n
    \r\n redsgomarching is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2016
    \r\n \r\n \r\n
    Posts
    229
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    She can also deplete her RRIF with converting RRSP to RRIF abd saving on redemption fees
    \r\n \r\n
    \r\n
    \r\n
    she works at the bank i she wont get redemption fees. the withholding taxes will still be there. the thing about the RRIF is it will be mandatory withdrawals which will give her more than what she needs and increase her tax liability.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n
    \r\n \r\n Last edited by redsgomarching; 2017-03-20 at 05:10 PM.\r\n \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1514025] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #16\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by redsgomarching\r\n View Post\r\n
    \r\n
    she works at the bank i she wont get redemption fees. the withholding taxes will still be there. the thing about the RRIF is it will be mandatory withdrawals which will give her more than what she needs and increase her tax liability.
    \r\n \r\n
    \r\n
    \r\n
    My wufe also works ib the bank and she\'s not exemp from redemption fees.... also, I dpn\'t get... in one post you say that she wants to deplete caputa; and ib otjer post that RRIFs minimum witdrawal (that is just couple of %_ is too big for her\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1514049] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #17\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n heyjude\r\n \r\n
    \r\n heyjude is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n heyjude\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    May 2009
    \r\n
    Location
    BC
    \r\n \r\n
    Posts
    902
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    My wufe also works ib the bank and she\'s not exemp from redemption fees.... also, I dpn\'t get... in one post you say that she wants to deplete caputa; and ib otjer post that RRIFs minimum witdrawal (that is just couple of %_ is too big for her
    \r\n \r\n
    \r\n
    \r\n
    My thoughts too. She can\'t have her cake and eat it!\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1514081] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #18\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by heyjude\r\n View Post\r\n
    \r\n
    My thoughts too. She can\'t have her cake and eat it!
    \r\n \r\n
    \r\n
    \r\n
    True! The only advantage I can see in "RRSP flexibility" withdravals that one year she can withdraw 0 (for example if some huge GIC is matured) and in other year to withdraw more, but it\'s hardly can be considering as "depletion"\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1514209] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #19\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n redsgomarching\r\n \r\n
    \r\n redsgomarching is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2016
    \r\n \r\n \r\n
    Posts
    229
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    My wufe also works ib the bank and she\'s not exemp from redemption fees.... also, I dpn\'t get... in one post you say that she wants to deplete caputa; and ib otjer post that RRIFs minimum witdrawal (that is just couple of %_ is too big for her
    \r\n \r\n
    \r\n
    \r\n
    she wont get redemption fees lol. the RRIFS are mandatory, the other way is not. not sure what is so hard to understand lol.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1514225] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #20\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by redsgomarching\r\n View Post\r\n
    \r\n
    she wont get redemption fees lol. the RRIFS are mandatory, the other way is not. not sure what is so hard to understand lol.
    \r\n \r\n
    \r\n
    \r\n
    Probably you don\'t understand . Mandatory is only RRIF minimums that is couple of %, if she gonna withdraw even less that RRIF minimums, she won\'t deplete her funds for next 120 years \r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1514241] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #21\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n redsgomarching\r\n \r\n
    \r\n redsgomarching is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2016
    \r\n \r\n \r\n
    Posts
    229
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    Probably you don\'t understand . Mandatory is only RRIF minimums that is couple of %, if she gonna withdraw even less that RRIF minimums, she won\'t deplete her funds for next 120 years
    \r\n \r\n
    \r\n
    \r\n
    I do understand, we know the plan and we\'ve run the numbers. She doesn\'t want to have to make mandatory withdrawals she will take out what she needs at the beginning of each year in hopes to deplete as much as she can by the time she hits 65 where she can take her pension, cpp, oas. this will minimize her tax over the years.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1517378] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #22\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n agent99\r\n \r\n
    \r\n agent99 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Sep 2013
    \r\n
    Location
    Ontario
    \r\n \r\n
    Posts
    962
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    Probably you don\'t understand . Mandatory is only RRIF minimums that is couple of %, if she gonna withdraw even less that RRIF minimums, she won\'t deplete her funds for next 120 years
    \r\n \r\n
    \r\n
    \r\n
    Minimum RRIF withdrawal is more than a "couple of %" Until a couple of years ago it was even higher.
    \n
    \nhttps://www.woodgundy.cibc.com/wg/re...ithdrawal.html\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1517450] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #23\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by agent99\r\n View Post\r\n
    \r\n
    Minimum RRIF withdrawal is more than a "couple of %" Until a couple of years ago it was even higher.
    \n
    \nhttps://www.woodgundy.cibc.com/wg/re...ithdrawal.html
    \r\n \r\n
    \r\n
    \r\n
    Yes, it depends on age,but minimum payments are scheduled this way that it will last until owner turn 90+, so if somebody wants to deplete registed funds and want to withdraw less than RRIF minimum, it\'s unrealictic\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1518594] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #24\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Eclectic12\r\n \r\n
    \r\n Eclectic12 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Oct 2010
    \r\n \r\n \r\n
    Posts
    7,913
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by redsgomarching\r\n View Post\r\n
    \r\n
    she wont get redemption fees lol. the RRIFS are mandatory, the other way is not. not sure what is so hard to understand lol.
    \r\n \r\n
    \r\n
    \r\n
    Hmmm ... if the redemption fees are waived - does this mean withdrawal fees as well?
    \n
    \nThe RRSP does have the ability to schedule withdrawals but for non-bank employees - there\'s usually a withdrawal fee, in addition to the withholding tax.
    \n
    \nThe RRIF avoids this but does have minimum withdrawal amounts.
    \n
    \n
    \n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by agent99\r\n View Post\r\n
    \r\n
    Minimum RRIF withdrawal is more than a "couple of %" Until a couple of years ago it was even higher.
    \nhttps://www.woodgundy.cibc.com/wg/re...ithdrawal.html
    \r\n \r\n
    \r\n
    \r\n
    Unless one has hit 71 - can\'t one transfer a small amount to the RRIF, providing some control over what the minimum amounts will be?
    \n
    \n
    \nCheers\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1518698] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #25\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n heyjude\r\n \r\n
    \r\n heyjude is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n heyjude\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    May 2009
    \r\n
    Location
    BC
    \r\n \r\n
    Posts
    902
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by Eclectic12\r\n View Post\r\n
    \r\n
    Hmmm ... if the redemption fees are waived - does this mean withdrawal fees as well?
    \n
    \nThe RRSP does have the ability to schedule withdrawals but for non-bank employees - there\'s usually a withdrawal fee, in addition to the withholding tax.
    \n
    \nThe RRIF avoids this but does have minimum withdrawal amounts.
    \n
    \n
    \n
    \n
    \nUnless one has hit 71 - can\'t one transfer a small amount to the RRIF, providing some control over what the minimum amounts will be?
    \n
    \n
    \nCheers
    \r\n \r\n
    \r\n
    \r\n
    Yes. Assuming the objective is to take a withdraw a small, specified amount annually, while leaving the remainder intact, the most efficient strategy would be to use the desired annual payment as the minimum withdrawal amount, to calculate the principal required in an RRIF to pay out that amount every year, and to transfer that principal from the RRSP to an RRIF, leaving the remainder of the RRSP to grow until age 71. As long as RRIF payments are minimums, no tax will be withdrawn at source, though of course it will all be reconciled at tax time. And there should be no annual fees attached to these RRIF withdrawals.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n
    \r\n \r\n Last edited by heyjude; 2017-03-23 at 03:53 PM.\r\n \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1513250] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #26\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n carverman\r\n \r\n
    \r\n carverman is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Nov 2010
    \r\n
    Location
    Ottawa
    \r\n \r\n
    Posts
    7,423
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by steve41\r\n View Post\r\n
    \r\n
    $500K starting at age 60 (6% ROR and 2% inflation, living in BC) results in a $36.8 K lifestyle, dying broke at age 95.
    \r\n \r\n
    \r\n
    \r\n
    If you manage to make it to 95 with dementia setting in, you won\'t be worrying whether you are broke or not.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1511970] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #27\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n 1980z28\r\n \r\n
    \r\n 1980z28 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2010
    \r\n \r\n \r\n
    Posts
    1,295
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by My Own Advisor\r\n View Post\r\n
    \r\n
    Have folks played with this or used something similar?
    \r\nhttp://www.taxtips.ca/calculators/rr...calculator.htm
    \r\n
    \r\nI played with the numbers assuming $500k to start, at age 60 with 6% ROR to withdraw $30k annually. Money seems to last until 93/94.
    \r\n \r\n
    \r\n
    \r\n

    \r\nnice\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1510434] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #28\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n carverman\r\n \r\n
    \r\n carverman is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Nov 2010
    \r\n
    Location
    Ottawa
    \r\n \r\n
    Posts
    7,423
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by agent99\r\n View Post\r\n
    \r\n
    If your RRSP is at an on-line brokerage, all you have to do, is open a new RRIF account with them, then transfer whatever amount you wish into that account from your RRSP (they should have forms for you to do this - talk to them). This can be stocks, cash, GICs etc. There is not much difference between an RRSP and a RRIF and once 71 the RRSP turns into a RRIF anyway. (You can do same if you have your RRSP elsewhere) Then you draw at least the minimum amount each year. No withholding on minimum, but there will be on any excess over minimum. Not a problem, because withdrawals are income and taxable anyway. If you are over 65, that withdrawal counts as pension income and you get the $2000 pension deduction when you file your taxes. With interest rates low, annuities are not attractive.
    \n
    \nBy the way, in your example you chose 8% return and 2% inflation. (6% Real Return) That would be nice, but not realistic. 2-3% real return might be more realistic (4-5% today)
    \r\n \r\n
    \r\n
    \r\n
    Thanks. i\'m planning to just use some kind of safe invest,ent even if the ROI is only 3%, as I won\'t have that much in my RRIF..maybe $50k,with the Nortel settlement if it happens this year.
    \nI just want somewhere safe to stash those funds as I need them every year from now on.
    \nIf invested as cash, I could draw out $2700 at AGE 72, declining every year to last withdrawal at age 91.($2122)\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509554] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #29\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n steve41\r\n \r\n
    \r\n steve41 is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Apr 2009
    \r\n
    Location
    Hornby Island in the Straight of Georgia
    \r\n \r\n
    Posts
    1,683
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by GreatLaker\r\n View Post\r\n
    \r\n
    So steve41 in the scenarios where my estate loses does that mean I win? Or does the tax man win?
    \r\n \r\n
    \r\n
    \r\n
    No..... this assumes you live exactly the same after-tax lifestyle in each case.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509586] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #30\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n Wishful thinking, you do realize that there is a threshold for your income to qualify for the GIS?\r\n \r\n
    \r\n
    \r\n
    If income considered for couples, we never gonna get GIS (unless we getting divorced)
    \nTypical government bullshit, the taxes is calculated as per individual income (even puny $2,000 split was cancelled), but GIS qualification is calculated as per family income... Ridiculous!\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509322] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #31\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Eclectic12\r\n \r\n
    \r\n Eclectic12 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Oct 2010
    \r\n \r\n \r\n
    Posts
    7,913
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    .. Also,if you withdraw from RRSP , you pay withholding tax right away, from RRIF - you don\'t...
    \r\nbtw,if you withdraw more than RRIF minimum, should you pay withholding tax right away?
    \r\n \r\n
    \r\n
    \r\n
    Where the RRIF withdrawal exceeds the minimum, the financial institution is required to withhold tax at the same rate as a similar sized RRSP withdrawal. For example if the minimum RRIF withdrawal is $3K where one withdraws from the RRIF $7K, the minimum withdrawal is fine but the additional $4K will have the 10% withholding tax applied to it.
    \r\n
    \r\nSo for that part that is subject to the withholding tax, one is paying the withholding tax as the withdrawal happens ... only difference for the RRIF is that part of the withdrawal is not subject to the withholding tax.
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n No tax is withheld when the minimum amount is withdrawn from a RRIF.* When withdrawals in excess of the minimum amount are made, the above RRSP lump sum withholding tax rates apply.\r\n \r\n
    \r\n
    \r\n
    http://www.taxtips.ca/rrsp/withholdingtax.htm
    \r\n
    \r\n
    \r\nCheers
    \r\n
    \r\n
    \r\nPS
    \r\n
    \r\nOr to put it another way, YMMV where being over the RRIF minimum withdrawal = withholding taxes being deducted.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n
    \r\n \r\n Last edited by Eclectic12; 2017-03-16 at 03:57 PM.\r\n \r\n \r\n Reason: added PS\r\n \r\n
    \r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509298] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #32\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n OnlyMyOpinion\r\n \r\n
    \r\n OnlyMyOpinion is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Aug 2013
    \r\n \r\n \r\n
    Posts
    1,920
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by gibor365\r\n View Post\r\n
    \r\n
    That what I was talking about .
    \nI just don\'t see what is advantage to keep RRSP (and not convert to RRIF) after I fully retire (way before 65 )
    \r\n \r\n
    \r\n
    \r\n
    If you are planning to \'melt down\' your RRSP/convert to RRIF early, just make sure you have modeled your various retirement income streams and don\'t find yourself short in your later years. The tax-sheltered growth within your RRSP until age 72 can be very helpful.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509338] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #33\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n GreatLaker\r\n \r\n
    \r\n GreatLaker is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n GreatLaker\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Mar 2014
    \r\n
    Location
    Toronto, Ontario
    \r\n \r\n
    Posts
    603
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n I think this is difficult to model and evaluate without considering investment returns and tax rates and how they change over time. Tax rates don\'t change that much, but investment returns can vary widely. And lifespan is a wild card for most people.
    \r\n
    \r\nIMO if you withdraw from RRSP/RRIF earlier than required:
    \r\n
    • Costs: additional taxes from retirement to year you turn 71, plus lost investment returns on those funds.
    • Benefits: 1) avoid 15% OAS recovery tax (aka clawback) if your income is in the clawback range (~$75-121k for 2017); 2) possible lower tax rates - I expect my marginal tax rate will jump up significantly the year I hit 72 and mandatory RRIF withdrawals start so money withdrawn earlier is taxed less.

    \r\n
    \r\nCalculate the net present value of costs and benefits for various withdrawal amounts to estimate breakeven age.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    Eschew obfuscation. Espouse elucidation
    \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509042] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #34\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n Ideal case , to withdraw minimum from RRIF that you will stay in the lowest tax bracket, and supplement this income with TFSA (but Trudeau reversed nice TFSA room increase) \r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1508802] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #35\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n pwm\r\n \r\n
    \r\n pwm is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n pwm\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jan 2012
    \r\n
    Location
    Headingley MB
    \r\n \r\n
    Posts
    646
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by heyjude\r\n View Post\r\n
    \r\n
    Another reason to create a RRIF at age 65 is to take advantage of the $2000 pension tax credit.
    \r\n \r\n
    \r\n
    \r\n
    Good point. I have a company pension, so I already qualify for that, but the RRIF payment is also considered by CRA to be "Pension Income". Also, bear in mind that the $2,000 is really $4,000 for a couple, because each person claims it.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1508986] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #36\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n heyjude\r\n \r\n
    \r\n heyjude is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n heyjude\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    May 2009
    \r\n
    Location
    BC
    \r\n \r\n
    Posts
    902
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by pwm\r\n View Post\r\n
    \r\n
    Good point. I have a company pension, so I already qualify for that, but the RRIF payment is also considered by CRA to be "Pension Income". Also, bear in mind that the $2,000 is really $4,000 for a couple, because each person claims it.
    \r\n \r\n
    \r\n
    \r\n
    Well, I am single and do not have a pension, so I make it my business to take advantage of any little break available to me, even if it is only $2000.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n \r\n \r\n
    \r\n \r\n Last edited by heyjude; 2017-03-16 at 01:30 PM.\r\n \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509122] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #37\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n jargey3000\r\n \r\n
    \r\n jargey3000 is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jan 2011
    \r\n \r\n \r\n
    Posts
    1,610
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by pwm\r\n View Post\r\n
    \r\n
    When I hit 65 I converted my RRSP to a RRIF and started aggressive withdrawals. Two reasons:
    \r\n
    \r\n1). You can transfer 50% of the payment to your wife. You need to be 65 and it must be a RRIF to do so. She did not work and I\'m trying to get as much income in her name as possible.
    \r\n2). I\'m delaying OAS until 70. I\'m well into claw-back territory and I want my RRIF to be very small at that time so as to minimize the penalty.
    \r\n \r\n
    \r\n
    \r\n
    sooo....with RRIF you transfer 50% income to spouse, but if you take income out of RRSP it\'s all yours - is that correct???
    \r\nwhat about general \'income-splitting\' rules?\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509130] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #38\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n jargey3000\r\n \r\n
    \r\n jargey3000 is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jan 2011
    \r\n \r\n \r\n
    Posts
    1,610
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n FWIW...wifey & I have been drawing income out of our RRSPs for couple years now. With RBC-DI. They deduct 20% withholding tax, but there\'s no \'withdrawal\' fees. What a great bank! \r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509186] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #39\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n gibor365\r\n \r\n
    \r\n gibor365 is offline\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jun 2016
    \r\n \r\n \r\n
    Posts
    1,872
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by jargey3000\r\n View Post\r\n
    \r\n
    FWIW...wifey & I have been drawing income out of our RRSPs for couple years now. With RBC-DI. They deduct 20% withholding tax, but there\'s no \'withdrawal\' fees. What a great bank!
    \r\n \r\n
    \r\n
    \r\n
    Are you sure?! as per https://www.rbcdirectinvesting.com/pricing/fees.html
    \nevery RRSP withdrawal is $50 \r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; pd[1509250] = '\r\n
  • \r\n\r\n\r\n
    \r\n \r\n \r\n \r\n #40\r\n \r\n \r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n pwm\r\n \r\n
    \r\n pwm is online now\r\n\r\n \r\n
    \r\n \r\n Senior Member\r\n \r\n \r\n \r\n \r\n \r\n \r\n pwm\'s Avatar\r\n \r\n \r\n \r\n
    \r\n
    \r\n
    Join Date
    Jan 2012
    \r\n
    Location
    Headingley MB
    \r\n \r\n
    Posts
    646
    \r\n \r\n
    \r\n \r\n \r\n \r\n \r\n
    \r\n \r\n
    \r\n
    \r\n \r\n \r\n\r\n\r\n \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n
    \r\n \r\n
    \r\n Quote Originally Posted by jargey3000\r\n View Post\r\n
    \r\n
    sooo....with RRIF you transfer 50% income to spouse, but if you take income out of RRSP it\'s all yours - is that correct???
    \r\nwhat about general \'income-splitting\' rules?
    \r\n \r\n
    \r\n
    \r\n
    Yes, RRSP income does NOT qualify for income splitting, only RRIF payments.\r\n
    \r\n
    \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n \r\n
    \r\n
    \r\n \r\n
    \r\n
    \r\n
    \r\n
    \r\n -' + '->\r\n
    \r\n \r\n \r\n \r\n \r\n \r\n Reply With Quote Reply With Quote \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n -' + '->\r\n
    \r\n
    \r\n
    \r\n
  • \r\n'; // next/previous post info pn[1508466] = "1509250,1508474"; pn[0] = ",1508466"; pn[1508474] = "1508466,1508490"; pn[1508490] = "1508474,1508570"; pn[1508570] = "1508490,1508754"; pn[1508754] = "1508570,1508826"; pn[1508826] = "1508754,1508834"; pn[1508834] = "1508826,1508586"; pn[1508586] = "1508834,1508666"; pn[1508666] = "1508586,1508762"; pn[1508762] = "1508666,1508794"; pn[1508794] = "1508762,1508810"; pn[1508810] = "1508794,1508818"; pn[1508818] = "1508810,1508642"; pn[1508642] = "1508818,1508682"; pn[1508682] = "1508642,1508690"; pn[1508690] = "1508682,1508738"; pn[1508738] = "1508690,1508970"; pn[1508970] = "1508738,1509018"; pn[1509018] = "1508970,1509034"; pn[1509034] = "1509018,1509146"; pn[1509146] = "1509034,1509194"; pn[1509194] = "1509146,1509226"; pn[1509226] = "1509194,1509234"; pn[1509234] = "1509226,1509258"; pn[1509258] = "1509234,1509274"; pn[1509274] = "1509258,1509282"; pn[1509282] = "1509274,1509362"; pn[1509362] = "1509282,1509418"; pn[1509418] = "1509362,1509442"; pn[1509442] = "1509418,1509426"; pn[1509426] = "1509442,1509738"; pn[1509738] = "1509426,1509970"; pn[1509970] = "1509738,1510082"; pn[1510082] = "1509970,1510122"; pn[1510122] = "1510082,1510170"; pn[1510170] = "1510122,1510194"; pn[1510194] = "1510170,1510226"; pn[1510226] = "1510194,1510234"; pn[1510234] = "1510226,1510354"; pn[1510354] = "1510234,1510386"; pn[1510386] = "1510354,1510850"; pn[1510850] = "1510386,1510522"; pn[1510522] = "1510850,1510570"; pn[1510570] = "1510522,1510810"; pn[1510810] = "1510570,1510898"; pn[1510898] = "1510810,1510946"; pn[1510946] = "1510898,1511306"; pn[1511306] = "1510946,1511314"; pn[1511314] = "1511306,1511418"; pn[1511418] = "1511314,1511538"; pn[1511538] = "1511418,1511562"; pn[1511562] = "1511538,1512538"; pn[1512538] = "1511562,1511626"; pn[1511626] = "1512538,1512554"; pn[1512554] = "1511626,1512890"; pn[1512890] = "1512554,1513266"; pn[1513266] = "1512890,1513354"; pn[1513354] = "1513266,1513953"; pn[1513953] = "1513354,1513993"; pn[1513993] = "1513953,1514025"; pn[1514025] = "1513993,1514049"; pn[1514049] = "1514025,1514081"; pn[1514081] = "1514049,1514209"; pn[1514209] = "1514081,1514225"; pn[1514225] = "1514209,1514241"; pn[1514241] = "1514225,1517378"; pn[1517378] = "1514241,1517450"; pn[1517450] = "1517378,1518594"; pn[1518594] = "1517450,1518698"; pn[1518698] = "1518594,1513250"; pn[1513250] = "1518698,1511970"; pn[1511970] = "1513250,1510434"; pn[1510434] = "1511970,1509554"; pn[1509554] = "1510434,1509586"; pn[1509586] = "1509554,1509322"; pn[1509322] = "1509586,1509298"; pn[1509298] = "1509322,1509338"; pn[1509338] = "1509298,1509042"; pn[1509042] = "1509338,1508802"; pn[1508802] = "1509042,1508986"; pn[1508986] = "1508802,1509122"; pn[1509122] = "1508986,1509130"; pn[1509130] = "1509122,1509186"; pn[1509186] = "1509130,1509250"; pn[1509250] = "1509186,1508466"; // cached usernames pu[0] = guestphrase; pu[31313] = "jargey3000"; pu[43687] = "pwm"; pu[967] = "heyjude"; pu[15783] = "Eclectic12"; pu[282301] = "GreatLaker"; pu[331418] = "Dilbert"; pu[329922] = "like_to_retire"; pu[149299] = "yyz"; pu[18649] = "carverman"; pu[160083] = "OnlyMyOpinion"; pu[277544] = "gardner"; pu[325033] = "gibor365"; pu[16749] = "zylon"; pu[136] = "AMABILE"; pu[732] = "steve41"; pu[164561] = "agent99"; pu[51968] = "My Own Advisor"; pu[5158] = "1980z28"; pu[2791] = "Oldroe"; pu[319810] = "redsgomarching"; // -->

    Threaded View

    1. #16
      Senior Member
      Join Date
      Jun 2016
      Posts
      1,872
      Quote Originally Posted by redsgomarching View Post
      she works at the bank i she wont get redemption fees. the withholding taxes will still be there. the thing about the RRIF is it will be mandatory withdrawals which will give her more than what she needs and increase her tax liability.
      My wufe also works ib the bank and she's not exemp from redemption fees.... also, I dpn't get... in one post you say that she wants to deplete caputa; and ib otjer post that RRIFs minimum witdrawal (that is just couple of %_ is too big for her

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •