# want a $2000 cash withdrawal



## AMABILE (Apr 3, 2009)

In my registered account, I"m holding
BCE shares with a huge profit, alongside
BB shares with a huge loss.
I only need $2000 cash for withdrawal
for the tax exempt pension income.
where to draw from ?


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## Spudd (Oct 11, 2011)

If the account is non-registered it won't count as tax exempt pension income. 

Here is the list of allowed pension income sources: 
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/314/q6-eng.html


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## AMABILE (Apr 3, 2009)

sorry spudd, corrected to registered.


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## rikk (May 28, 2012)

AMABILE said:


> In my registered account, I"m holding
> BCE shares with a huge profit, alongside
> BB shares with a huge loss.
> I only need $2000 cash for withdrawal
> ...


BB ... if for no other reason than that BCE dividend ... 5%?


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## moisimplementmoi (Oct 20, 2014)

why have you not sold BB yet?


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## OptsyEagle (Nov 29, 2009)

If this is an RRSP, the withdraw will not qualify for the pension income tax credit (if that is what you are trying to achieve).

To qualify for the pension income tax credit, you need to be age 65 or older and all withdraws must be from a RRIF or a registered annuity.


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## AMABILE (Apr 3, 2009)

i'm 66 years old...i'll be transferring $2000 from RRSP to my RRIF
then withdrawing $2000...i have no other pension income


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## AMABILE (Apr 3, 2009)

sell $2000 BCE ....... (up 94% )
sell $2000 BB ........ (down 78% )
sell $1000 of each ?


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## moisimplementmoi (Oct 20, 2014)

AMABILE said:


> sell $2000 BCE ....... (up 94% )
> sell $2000 BB ........ (down 78% )
> sell $1000 of each ?


i am still curious on why you have not sold BB yet... and what makes you think they could turn around and justify still owning... the past movement is irrelevant, we are only looking forward....


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## AMABILE (Apr 3, 2009)

i don't have an answer ^^^^. wishing, hoping ,,praying, just doing nothing


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## Spudd (Oct 11, 2011)

I would sell BB for 2 reasons - I think the future prospects are much more uncertain than BCE's, and BCE pays a nice dividend.


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## My Own Advisor (Sep 24, 2012)

Sell your dud Amabile (BB) and buy dividend stocks only, otherwise, index invest everything!


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## LBCfan (Jan 13, 2011)

I was guessing you wanted to know which is more tax efficient. In a registered account, it doesn't matter. If you have cash from divis's, you could use it. If you have to sell something, what you sell is your choice (ie. which would you buy or sell for other reasons). If you are wanting to ask what to buy/sell, that is another question and my advice would be worth what you paid.


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## OhGreatGuru (May 24, 2009)

AMABILE said:


> i'm 66 years old...i'll be transferring $2000 from RRSP to my RRIF
> then withdrawing $2000...i have no other pension income


I don't know if your financial institution would be happy about someone "flushing" $2k through an otherwise empty RRIF account every year like this. It would be more common to transfer enough capital now so that you can withdraw $2000/yr until you are 71, at which time the balance of your RRSP has to go to a RRIF or annuity.


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## AMABILE (Apr 3, 2009)

guru, could you please expand on your concerns about my strategy.


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## My Own Advisor (Sep 24, 2012)

If age 65+

You could...

Convert $20k of RRSP to RRIF;
Withdraw $2k per year and claim the $2k pension tax credit until age 71.


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## AMABILE (Apr 3, 2009)

what's wrong with transferring and withdrawing only $2000 a year?


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## OhGreatGuru (May 24, 2009)

From your perspective, what are you paying in transaction fees for each of these transactions?
What is the value of your time?

From your financial institution's perspective, what is their administrative cost for opening a RRIF, transferring $2k/yr to it; allowing you to withdraw it all to zero balance; tracking the fact that deposits are from your RRSP, and therefore are non-taxable events; issuing you (and CRA) the right tax slips for withdrawals ; etc. Ask them. I may be surprised. If you're doing it all on line maybe they don't care about the time involved or paperwork.

You should be aware that, since your withdrawals will be in excess of the minimum required withdrawal rate, your financial institution has to deduct 10% withholding tax and send it to CRA. So that's another administrative cost for them.


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## AMABILE (Apr 3, 2009)

guru, please no worries........RRIF all set up last year
sold $2000 worth of stock in my RRSP for $9.95
then called BMO for the transfer and withdrawal
I'm at my computer all day long....no sweat


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## AMABILE (Apr 3, 2009)

there's minimal work for BMO
$1800 is transferred from my RRIF to my non-reg acct
and $200 to CRA


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## lonewolf (Jun 12, 2012)

Amabile what percentage of RRSP is in each stock ?


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## AMABILE (Apr 3, 2009)

BCE is 72%.........BB is 12%


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## Retired Peasant (Apr 22, 2013)

OhGreatGuru said:


> From your perspective, what are you paying in transaction fees for each of these transactions?


It's actually the transaction fees that might make you transfer from RRSP to RRIF and withdraw from there. TDDI charges a fee for withdrawing from a RRSP, but no fee to withdraw from a RRIF.


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## lonewolf (Jun 12, 2012)

Amabile what percentage is each stock of your total portfolio do you own your own house or have any debt ? You do not want to set up a low confidence poor risk/reward situation in your retirement.


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## AMABILE (Apr 3, 2009)

i'm mortgage free........no debt whatsoever
lots of dividend paying stocks in my non-reg account
hey, we're only talking $2000 here !


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## lonewolf (Jun 12, 2012)

Amabile Based on the statistics I use to gauge if a stock will out perform the S&P . The odds are highest BCE will out perform the S&P till market on close Fri Nove 21 2014. I would sell BCE on Nove 21 2014


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## AMABILE (Apr 3, 2009)

I called BMO and they will not charge me a transaction fee
to transfer the $2000 from my RRSP to my RIF to my non-reg acct.


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## My Own Advisor (Sep 24, 2012)

Nice...you must be a good client  Transaction free is a good thing!


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## lonewolf (Jun 12, 2012)

Others beware the banks are not your friend


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## Mortgage u/w (Feb 6, 2014)

Just curious as to why you have not converted your whole RRSP in to a RRIF? Are you still contributing to RRSP?


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## AMABILE (Apr 3, 2009)

I"m 66 years old, so not obliged to convert til I'm 71.
I'm taking advantage of the $2000 pension credit only.
If I transferred all of my RRSP, I'd be subject to minimum withdrawals etc


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## rikk (May 28, 2012)

My Own Advisor said:


> Nice...you must be a good client  Transaction free is a good thing!


OT: Your comment caught my eye ... there should never be a fee for withdrawing from an RRSP, and there's never a fee for opening a RIF or RSP ... is there? I recently inquired with QTrade and that's the case ... now, for RIF withdrawals if you stick with your schedule there's no fee, and there's a short period for same, but there is a fee for extraordinary withdrawals ... and there's always a fee for closing RSPs, RIFs.

Short story, I'd check that the planned $2K RIF withdrawal if fee free.


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## Retired Peasant (Apr 22, 2013)

TDDI charges $25 to withdraw from a RSP. They do not charge a fee to withdraw from a RIF.


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