# Retirement question for sister-in-law,When to W/D her RSP?



## marina628 (Dec 14, 2010)

Hi 
I am asking this for my sister in law Francis , she just turned 58 years old and was widowed three years ago.She receives CPP of $900 a month and that is her only income.She used the life insurance money to pay off their house which is worth $200,000 and she has $176,000 in RSP .

She was told recently she should withdraw all the RSP before she turns 65 so she gets more money GIS I suppose.Anyone here have any suggestions?She has enough Cash to live on for next 5 years without touching RSP so probably would roll RSP into maximum TFSA as she w/d it.


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## Daniel A. (Mar 20, 2011)

If taking money out of her RSP does not affect the amount she receives from CCP, then I would be looking at taking as much out of the RSP as needed to stay in the low tax bracket.

In her case likely in the range of 25,000.00 a year, max out the TFSA with some and look to an adviser for parking the rest. 

It does sound reasonably that she got such advise.


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## steve41 (Apr 18, 2009)

I had to give her $50K cash to make things behave.....

Depleting RRSP
Sheltering RRSP

She looks like she should deplete her RRSP.


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## marina628 (Dec 14, 2010)

Hi STEVE 
I looked at docs ,thanks for taking the time to do this.So she should take out $30,000 a year and put 5k a year in her TFSA?I am sure estate taxes on the RSP is something she never considered as well.


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## steve41 (Apr 18, 2009)

Yes, I simply trial and error-ed the $30K. It whittled the RRSP down quickly to a low amount before 65. 

You mentioned she had cash, so I guessed the $50K. (You can't appreciate how little time this took, BTW)

Steve


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## marina628 (Dec 14, 2010)

She has about $120,000 cash ,she spent $42,000 in 2010 but she actually has some home Reno work to do .On average she spends about $2600 a month before taxes ,her PROPERTY taxes and utilities are about $800 a month then she has car to keep up insurance etc and spends about $3000 a year vacation.Before people start writing a budget for her , her husband died at 56 of a massive heart attack and never got to enjoy life.She is living well and being alone now she flies to Florida once a year to spend time with her brother and wife at their place and has to fly once a year to visit her two kids so there is the $3000 after tax vacation.


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