3 Reasons You Need to Aggressively Withdraw Your RRSPs

Рет қаралды 123,439

Күн бұрын

Пікірлер: 43

@diannestephens2397 4 ай бұрын

The problem with drawing down from RRSP to decrease your income before going to a care home is that no one can really predict when that day may happen.......

@DoneByD 4 ай бұрын

The drawdown doesn't mean you don't have the money any longer - its just removed systematically over a number of years so you don't get a larger tax hit... You can save the money in your TFSA assuming you don't need all funds or even an unregistered investment (however doing this has other potential tax consequences moving forward). Or if you are in a low tax bracket but not at the top of the income in that bracket it just make sense to pull some money out to take you to the top of the bracket. Another reason, if you don't have other income eligible for the pension credit then you might as well remove some RRIF money that allows you to claim that tax credit for the year.... And lastly actually having money out of your RRSP account and into open or TFSA may help in lowering the monthly charges in a care home as many are income tested so lower income means lower fees to stay in the care home.

@D59hawk Ай бұрын

If you run out of money the government will provide MAID for free.

@RetiredPilot 4 ай бұрын

A carefull study needs to be done before you take money out of a RRIF that continues to grow tax free and to put it anywhere other than in a TFSA that is only a small amount. Now the rest of your money will be earning money that is taxable or subject to capital gains tax at some point. This can also put you in a higher tax bracket and reduce you OAS. JMHO

@bitememoto1 3 ай бұрын

How do you aggressively draw down your rrsp ?

@dougnettleton5326 8 күн бұрын

For some reason, this just popped up in my youtube feed again. I watched it again and read some of the comments. It's so sad to realize how ignorant people - including the presenter - are about how RRSPs work. An RRSP is like walking into a bank each February and advising the bank that you want to borrow a bunch of money, which they would lend you - interest free - for the rest of your life and possibly the life of your spouse should you predecease them. Too bad your beneficiaries complain that they don't get to keep all the loaned money The idea of rapidly drawing down one's RRSP to minimize taxes being paid and "solving" the OAS claw back issue is just another example of "cutting off your nose to spite your face." Paying less tax at the expense of having less for yourself and your heirs is just stupid. I guess if you're trying to attract clients who are either ignorant or want you to tell them there's a "free lunch," then I guess this video is pretty good, but it's certainly not honest financial advise.

@garth217 9 ай бұрын

The one comment you made about staying in the same tax bracket is true, however for each dollar in that bracket, you pay more taxes. Tax brackets are laddered. Ie if you are in the 32% bracket and you have only $1000 above that limit you only pay that 32% on the extra thousand. If you have $5000 over you pay 32% on the 5000

@transcanadawealth 9 ай бұрын

Appreciate the feedback!

@DoneByD 4 ай бұрын

Your comment is true however average tax will be considerably lower than the marginal tax you pay on the funds in the 32% bracket and if you contributed to RRSP while in the 32% bracket you got the tax credit at the marginal rate going in but only have to pay actual tax at the average rate coming out.

@martinroncetti4134 Ай бұрын

Isn’t it amazing that if you are fortunate enough to have a good income that it is only “fair” that you have higher taxes & yet, when you become ‘eligible’ for benefits, it is only “fair” that we all receive the same outcome.

@HepCatJack Ай бұрын

The members of Parliament making the decisions about what's "fair" also get a nice govt pension that people in the private sector pay for but do not have.

@michaelratcliffe7559 Ай бұрын

1. You should state upfront in the titled thumbnail that this video relates to Manitoba. 2. You should also make it clear that this video relates to married and wealthy retirees who have so much saved fir their retirement that they will have $80,000+ a year in retirement income. This is clearly not a video for the average Canadian with no to little money saved in RRSPs and a small or nonexistent pension.

@michaelmackinnon1198 7 ай бұрын

So when withdrawing from rrsp, I assume it would be best to contribute that money to TFSA? This is assuming your have room in your TFSA (or in your spouse's TFSA account). Thanks!

@danag812 4 ай бұрын

Yes of course. Because then you can avoid the other bugaboo tax...capital gains tax.

@angharadswansea9343 Ай бұрын

1. If I had to do it all over again I would not contribute to RSP‘s, but I would invest. This way I could take some of the principle from the investment and not pay taxes on that as income. 2. I retired at 54. I have a pension from work which was comfortable so I withdrew $15,000 per year from RSP’s until I turned 65. 3. Just before I turned 65 I turned my RSP’s into a RIF so I could have an extra $2000 deduction for my income tax. 4. I started collecting both my OAS and CPP at age 65 and I took the minimum percentage out of my RIF. 5. Now that I’ve got a handle on where I am income wise, I’m going to increase my RIF still to the point where I don’t have any clawback of OAS. 6. I think anybody who has $500,000 in RSP’s runs the risk of leaving some in there before they die.

@DavidHughes-f6c 15 күн бұрын

Why wouldn't you have delayed OAS and CPP and drawn from your RRIF more extensively which the age credit would have offset.

@jimjackson4256 2 ай бұрын

Too bad you need to rif your rrsp instead of letting people withdraw money as they need it instead being told how much to withdraw.

@chrisklugh 3 ай бұрын

I think #2 is not worth thinking about. If you make enough not to worry about it, don't worry about it.

@rongrant3500 Ай бұрын

Absolutely agree. If your only problem is that you have too much money coming in in retirement, you don't have a problem.

@huyhuynh9523 5 ай бұрын

No mention on GIS for low income pensioner?

@jigyjigy2749 Ай бұрын

withdrawal of RRSP is the problem, because the bank will only give so small percentage of your money. Better to invest you money in STOCK by yourself especially if you are young.

@paulsatran5321 Ай бұрын

does the same appraoch work for a RRIF

@File-xo5if Ай бұрын

$104,000 is gross not net....OAS clawback does not apply.

@rongrant3500 Ай бұрын

I'm pretty sure that if the government gets additional tax from me when I'm dead, I won't mind.

@claudia-vp1kd Ай бұрын

Excellent video ❤

@transcanadawealth Ай бұрын

Thanks!

@jaapongeveer6203 4 ай бұрын

I'm taking the maximum amount that after splitting with my wife keeps both of us in the lowest tax bracket. I'm taking it out aggressively in case one of us dies and the other is left with having to take a longer period to get it out at the lowest bracket. Don't have TSFA room bit it is what it is.

@billyrock8305 8 ай бұрын

Good advice ✅

@transcanadawealth 8 ай бұрын

Thanks for watching!

@rtel123 4 ай бұрын

The posting looks better if you spell "draw down" correctly in the title picture. You spell it correctly later. And some of the captions during the lecture are spelled wrong too.

@waffles1ca 5 ай бұрын

Thanks for the advice, my wife has an RRSP, we are planning to push the collection of her CPP and OAS to age 70, trying to draw that RRSP down by at least 1/3 over the next 6 years.

@transcanadawealth 4 ай бұрын

Sounds great!

@dougnettleton5326 4 ай бұрын

Pushing CPP and OAS out to 70 is a great idea - unless you have known life-threatening condition or you need the funds to afford your lifestyle. Drawing down her RRSP beyond what you need to live the lifestyle you want and to maximize your TFSA contributions is foolish. People who make these youtube videos either don't want to tell their clients the truth or are unfamiliar with a financial calculator. The goal should never be to pay less tax if it means having less for yourself or your estate. All the tax credits people get over the time they're building their RRSP are effectively a series of indefinite interest-free loans.

@DavidHughes-f6c 15 күн бұрын

@@dougnettleton5326Most people who work with money - CFAs CFPs etc would disagree, but in the magical land of the internet everyone's opinion has value. 😂

@b-rare 2 ай бұрын

I incorporated to avoid the rrsp scam.

@mode1charlie170 Ай бұрын

Why am I beginning to think the best place to put your money is to save it in your sock drawer. Nobody but you can touch it.

@r.l.rachel740 2 ай бұрын

1) In the beginning, you never once said that all $ contributed to an RRSP was tax deducible. 2) Ever try to get into a Gov’t care facility ? Good luck ! 3) Private care costa a minimum of $8K a month. Should U live to 90+ years, U better have a $1MM in Ur RRSP \ RRIF…..

@angharadswansea9343 Ай бұрын

The reason they didn’t mention that all contributions to RSP were tax deductible is because that’s not what this video was about.

@vickipeterson9262 Ай бұрын

You have missed the point when saving. First the reason RRSP are used is for tax reducing, saving for retirement when in lower income. Other saving options TFS. Requiring millions to retire depends on where you live, what your retirement plan is " ex: do you travel etc'". What is the cost to live where you are located etc. Variation are different for everyone.