# Utilizing RRSP Savings



## gemma119 (Apr 6, 2009)

Need some advise on when to start drawing down our RRSP accounts please. When a couple starting retirement 63 and 61 have assets of about 1.4 million of which 1/3 is RRSP, 1/3 non reg monies, 1/3 real estate (2 homes) and getting CPP, and a small pension. What is your opinion on how much should we be drawing out of our RRSP through a RRIF if any at this time. 
Thanks in advance.


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## steve41 (Apr 18, 2009)

I gave each of you $240K in reg, nonreg and real estate. RE sold in 2020, and I didn't give you a pension, just cpp&oas. I played around with taking out RRSP early, but it didn't seem to make a difference. Keep RRSP intact.

Plans (4% growth, 2% inflation, living in BC......

Mrs Thanx
Mr Thanx


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## kcowan (Jul 1, 2010)

RU both already drawing CPP? It will make a difference. Some would say that drawing down on your RRSP until age 65 will minimize your OAS clawbacks. Then deferring the RRIF until required by the CRA will minimze the Age Credit clawback while drawing CPP. But you have not provided enough details.


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## Cal (Jun 17, 2009)

Steve41, I am impressed by the FP as well as your generosity for doing that for the couple on your own time.


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## steve41 (Apr 18, 2009)

Trust me, it was a pretty simple exercise... maybe 15 minutes tops. I understand that in order to have a plan done to this level of detail (especially the tax aspects) a fee-only planner would charge biggish bux. In this case, the data entry (ages of spouses, rsp, non reg, real estate, rate, inflation and a couple of other simple parameters) took a few minutes, another couple of minutes to what-if the "attack RRSP or not" premise, post the 2 pdfs, and that was it.

Other changes might be to add the pension, refine the estate measure (do you want to die broke or leave a specific estate?), what is the ACB of the $480K real estate investment, what is the actual CPP for each spouse....

Otherwise it was a pretty straightforward plan.


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## gemma119 (Apr 6, 2009)

Thanks 
Steve41, We tried downloading your free trial offer to see if maybe your software would work for us. I couldn't get it to download. I am using Vista on my PC. We appreciate you running our model for us. If we were to purchase your software do you think it is something that would be a benefit to us going forward from here.
KCOWAN thanks also and yes we are getting CPP (about 1100 / month between the 2 of us). I'm hoping that using income splitting between the 2 of us we will get full amount OAS.


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## steve41 (Apr 18, 2009)

I am running on Vista 32, however Vista 64 requires you have VirtualPC installed. It is a free download from Microsoft. System7 runs RRIFmetic on the Professional and Ultimate versions (the XP mode), but not on Home Premium. Hats off to Microsoft who have realised there are a lot of S/W developers who can't migrate their programs up to these newer exotic platforms, and have still made it possible for users to continue running. (short of digging that old XP out of the attic, of course)


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## kcowan (Jul 1, 2010)

gemma119 said:


> ...
> KCOWAN thanks also and yes we are getting CPP (about 1100 / month between the 2 of us). I'm hoping that using income splitting between the 2 of us we will get full amount OAS.


Also be aware that the Age Credit gets clawed back too. It starts to claw back at an income of $33k.


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