# Interesting Video on Withdrawing from RRSP's Paying No Tax



## dBII (Mar 12, 2013)

Understanding how this works is a bit above my pay grade. I think that the process makes sense, but I would like to get some perspective from some of the experts here.

https://www.youtube.com/watch?v=i7Yl8uyid5U&t=4s&fbclid=IwAR2FYLzorukPgJZeREIssk_hnYYTW1PjR5D4DMZc6c2NSMOdBg3pxKnr8Vg


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## like_to_retire (Oct 9, 2016)

dBII said:


> Understanding how this works is a bit above my pay grade. I think that the process makes sense, but I would like to get some perspective from some of the experts here.
> 
> https://www.youtube.com/watch?v=i7Yl8uyid5U&t=4s&fbclid=IwAR2FYLzorukPgJZeREIssk_hnYYTW1PjR5D4DMZc6c2NSMOdBg3pxKnr8Vg


OMG, I could hardly get through watching even half this nonsense.

ltr


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## james4beach (Nov 15, 2012)

I only skimmed through part of the video, saw a slide about "innovative solutions" which included a triple question mark .... which put up some alarm bells.

Then they describe a 10 year strategy that requires the viewer to put _all their money_ into Mortgage Investment Corp (MIC) shares! And of course, this guy in the video is the one you should contact to help buy specialized MICs.

No!


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## ian (Jun 18, 2016)

Is sounds along the same lines as that charity scam...give us $1000 and we will give you a charitable tax donation receipt for $10,000. Makes sense to me. NOT.


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## sags (May 15, 2010)

One of those scams was called Synergy Group 2000.

The promoter got fined by the regulator and banned for life. Last I read he hadn't paid the fine. 

The scam cost the government $200 million in revenue and the scammers made millions. 

Investors lost about $14 million and got audited by the CRA and had to repay the tax refunds plus interest and penalties.

But of course the promoter is bankrupt today, all the money is "gone", and he can't pay any lawsuit judgements against him.

White collar crime pays well and the penalties are a joke.

The RCMP laid charges in 2014 and here is how it was resolved to date. The case was delayed because there aren't enough judges.

https://torontosun.com/news/local-news/mandel-judge-shortage-puts-fraud-trial-in-jeopardy

https://www.thepeterboroughexaminer...es-stayed-against-peterborough-s-shane-smith/


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## OptsyEagle (Nov 29, 2009)

Two problems that I see. The biggest one is the tax deductibility of the interest payments. I think CRA would choke a little when you tell them you have an expectation for profit, when your cost of funds is 15% to start with. He even shows the investment portfolio growing at around 5%.

2nd problem. He shows the RRSP melting down to zero in 10 years or something like that. I don't see how he can lend all the money out of the RRSP and still make RIF payments to funnel the money back into the TFSA. All the money for those RIF payments has been lent out to make investment loans (to get the tax deductions). He is not explaining his numbers well but it seems to me that he has double counted something. He takes the RRSP and loans it to the owner for investing outside the RRSP. That is in another account which gets little mention. He then takes a wiped out RRSP and pays out a RRIF payment so this guy can put 15% of all of the money to the TFSA. Remember, the TFSA only loaned him $100,000 but somehow 15% of that equals $30,000 or more dollars going into the TFSA, every year. He never discusses the repayment of these MIC loans. When that is all done there should still be $500,000 in the RRSP and $100,000 to be repaid to the TFSA. If those repayments were done monthly, some of the RIF payment to make them would not be tax deductible.

This guy is a complete idiot.


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## james4beach (Nov 15, 2012)

OptsyEagle said:


> This guy is a complete idiot.


Not to mention that he's probably pointing the investors to some kind of shady BC mortgage-dumping-ground MIC as the vehicle. That whole thing can blow up on you.


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## OptsyEagle (Nov 29, 2009)

The whole thing is simply not legal. He puts the RRSP and TFSA money into a MIC (mortgage investment company) and then lends it out for an investment portfolio. So much for the MIC. As for the MIC inside the RRSP. RRSP lending has to be secured. The money has to be paid back. If it didn't, a person would just lend themselves their entire RRSP and then default once they had their cash in their non-registered bank account, and avoid all tax. CRA will not allow this. You can lend money to yourself in a mortgage, but it has to be secured, it has to be paid back and if not, the mortgage has be foreclosed on. I think we can all see why the rules are this way.

This guy has absolutely no idea what he is talking about. I will guarantee he has never done this before, because as I said, it cannot be done. Lucky for his clients, the RRSP administrators will most likely make sure things like this, that break many rules, just don't happen.

I suspect he is just trying to confuse people enough so they contact him. It's sole purpose is to generate prospects. If it worked well and he clearly explained it, the prospects would not need him. The only thing we know for sure, is the this guy is NOT the financial advisor you want. I am sure he doesn't even understand it himself.


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## james4beach (Nov 15, 2012)

OptsyEagle said:


> This guy has absolutely no idea what he is talking about. I will guarantee he has never done this before, because as I said, it cannot be done. Lucky for his clients, the RRSP administrators will most likely make sure things like this, that break many rules, just don't happen.
> 
> I suspect he is just trying to confuse people enough so they contact him. It's sole purpose is to generate prospects. If it worked well and he clearly explained it, the prospects would not need him. The only thing we know for sure, is the this guy is NOT the financial advisor you want. I am sure he doesn't even understand it himself.


lol. Youtube has some of the worst "financial advice" I've seen anywhere.

Try searching for stock picking / day trading videos some time. You're sure to get a video with a 22 year old guy in a fancy looking rented/leased car, telling us how he does leveraged stock speculation. After 3 months of doing it, he's determined that he's an expert and can teach you how to become rich too.

On the other hand, Ben Felix from PWL has a very nice series covering everything from asset allocation to historical return expectations
https://www.youtube.com/channel/UCDXTQ8nWmx_EhZ2v-kp7QxA/videos


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## jargey3000 (Jan 25, 2011)

...sounds GREAT to me! NO TAXES!!.... I'm definitely going to pursue this!.....thanks!


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## one day at a time (Aug 4, 2019)

*Moving entire RRSP to TFSA without tax consequences...*

I recently saw a video that explained how to do this. Hint, you need a mortgage/house with lots of equity to do it, but apparently it works. Here is the video:

https://www.youtube.com/watch?v=i7Yl8uyid5U

has anyone ever done this or know about it???


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## heyjude (May 16, 2009)

I watched the video. TBH, the strategy is complex and would probably raise red flags with Revenue Canada. You have to participate in an arms length MIC run by this company and probably pay them significant fees. I’ll pass.


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## moderator2 (Sep 20, 2017)

I merged this new thread with an old one because they are discussing the same video and same bad idea.

It might also be spam. The original post was from dBII, who has not been heard from since.

one day at a time: are you related to the company who created this video?


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## one day at a time (Aug 4, 2019)

moderator2 said:


> one day at a time: are you related to the company who created this video?


not at all, it's just a video that I happened to see on youtube and thought it may be of interest to people here. I guess people are saying it doesn't work, it's all good, I wasn't aware


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## ian (Jun 18, 2016)

IF you are looking for tax advice then get it from a professional.

My guess is that the gentleman in the video was probably flogging those charitable tax deduction scams a few years ago. Or perhaps timeshare or vacation club memberships.

If it sounds to good to be true then it is probably a scam.


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