3 RRSP Meltdown Strategies to Save MASSIVE Taxes

[@1983dmd]

How come this EXCELLENT channel does not have more subscribers ?!?!? You are really good sir. I am subscribing ! I am 62 and just retired a year ago. I totally agree with your scenarios.

[@wellbuiltwealth]

Thank you for the very kind words! I’ve only been working on the channel for just over five months and it seems most things simply take a bit to get them off of the ground. Hopefully, we pick up more and more traction though. But in the meantime, really appreciate your support :)

[@mathieuleger473]

​@@wellbuiltwealthgood advise

[@MssTibbs]

Probably doesn't have more subscribers because the average Canadian either doesn't have RRSP's or will most likely "run out" of any RRSP's they've saved and therefore not the slightest bit worried about the non existent "Massive" tax savings.

[@wellbuiltwealth]

@@MssTibbs And because I don’t have very nice hair.

[@1983dmd]

@@MssTibbs Yes, the ''magical thinking''!! Why worry, this is too distant in the future and the government pensions will be OK....Ohhh boy, gooood luck....!!!

[@leanderrowe2800]

I am impressed how much information you give out in only 23 minutes with no nonsense. Thank you and I am happy to subscribe.

[@Prash1c]

Awesome. Forward, direct, honest, humble, approachable, smart, and funny! Subscribed!

[@wellbuiltwealth]

Thanks for that!!

[@denniso3886]

I love this guy. Haha. He really knows how to talk n explain in such a simple to understand method. Should have his own talk show. Very witty n funny.

[@wellbuiltwealth]

Thanks! 😃

[@michelle.goodridge]

I am 55 and have been melting down my RSP for 3 years now and am moving things around to diversify. Being in a low income while building a new business it makes sense. I will be getting my CPP as Soon as I am eligible and I will invest my money myself. The advice to wait longer to receive more will not work if you die before that time. I have seen it too many times. As a single never married no kids, I plan to enjoy my loot while I’m living, am healthy and mobile. Too each his own.

[@Pkeats817]

Sounds good to me!

[@ecpoirier]

While I like all your videos, this one has become my favorite. This video has made me reconsider immediately draining my TFSAs and then using my RRSP balances. Because of the graduated tax brackets, I'm going to have to consider w/d from RRSPs at first, lowering the amount of taxes I pay, and use the TAX FREE Savings Accts (TFSA) later in my retirement. Please don't stop sharing your wealth of knowledge. You're making the lives of Canadian's better off, and we appreciate your hard work. Thank you.

[@wellbuiltwealth]

Thank you!! 😊

[@peterwong2451]

I am a retired CPA practitioner and find his presentation excellent. This short video is clear, concise and very informative with the right amount of insight and without any biased comments. I also appreciate his non tax guidance on important factors in choosing the appropriate strategy for the viewer.

[@aleem3205]

Thanks for providing us with this strategy. I retired at age 50, now I'm 55.... and employed this tactic. I was withdrawing $10,000 every year and using the money to make my TFSA contribution. But now.... I'll start withdrawing the maximum $15,000 from my RRSP account starting this calendar year.

[@parkerbohnn]

You're supposed to max out your TFSA before you put your first cent into an RRSP. Somewhere along the way you've been bumsteered with the wrong or bad advice. With the advent of the FHSA if yoiu don't own a house and have sold more than 5 years ago you max out the FHSA then max out the TFSA and then max out the RRSP.

[@aleem3205]

@@parkerbohnn I own my home already. It was purchased 15 years ago, and I have no mortgage . My wife will have a pension when she retires in 2038 and we have no household debt… so I think I’m good . I always contribute to my TFSA every year it’s the first thing I do every January 5 of every calendar year.

[@Imsosmrt1999]

@@parkerbohnn Dude, he's 55. TFSA has only been open since 20xx. Obviously he's made RRSP contributions. You had limited information but gave advice anyway, speaking of "bumsteering", whatever that is.

[@t.m.l.t.m.l.5399]

@@parkerbohnn No, always Rrsp 2nd if you are in a higher tax bracket. With the tax return put it towards the tfsa. Tfsa can be used as emergency money. Rrsp hopefully doubles or triples and then you pull it out at a lower tax bracket by retiring early.

[@parkerbohnn]

@@aleem3205 It would be $13,000 a year if Trudeau wasn't the Prime Minister.

[@richardmack4905]

In the years when I was making a good salary, we did not have TFSAs. We were bombarded with people telling us to invest the maximum in RRSPs. We did not know or appreciate the long term tax implications of RRSPs. I found this advice very helpful as I am now at a point of trying to draw down my RRSP. I have a dependant and want to leave them something without the headache of a huge tax burden. It is so important to maximize your TFSA. I needed money to care for an elderly parent, and was able to draw out an amount each month. Thank you so much for this informative video, as it is useful to all ages.

[@dkyrtata6688]

Me too. I bloated my RRSP with maximum contributions each year to save taxes and now, early retired, challenged to melt it down as efficiently as possible. But it grows as fast as I withdraw while trying to stay in the lowest provincial tax bracket.

[@samanthathompson9812]

​@@dkyrtata6688I can help you with that. 😂 I'll never own a home.

[@juliebeaulieu3720]

Yep. That’s what I say. RRSP was the only venue available at that time. The way I see it still I did manage to put some money away thru that time. I now wish I would have started tfsa earlier but it is what it is

[@dkyrtata6688]

@@samanthathompson9812 Why is owning a home problematic? I own my home and it does not change my RRSP situation whatsoever. What was most helpful is retiring early to get a head start on melting it down

[@samanthathompson9812]

@@dkyrtata6688 Sorry I was just joking. I'm happy to relieve people with too much cash, as I don't have enough and thus am likely never to own a home. I.e. they can give me some. Dumb joke as this person was complaining their money is growing too fast.

[@luisfigueroa2721]

Boy, I just clicked on your video, and loved it, Reese. You're good: Clear voice, RRSP topic well explained, sound, non-biased presentation. I strive to be like you! So glad I found you. I look forward watching more of your videos. Keep up the good work!

[@wellbuiltwealth]

Wow, thank you! Very kind words :)

[@dandronemonster3953]

I have to say you are a very smart man . Thank you

[@tubetop123]

Me too, best teacher ever!! Wish my university teacher was like you!!

[@All-About-the-Dog]

Finally I feel represented by seeing an example with a single person!! 😆 Always get such a kick out of the names, and you explain things so well. Thank you!

[@birdwindsor]

Thank you for the best strategy ever seen despite limited options. Some people try to keep income under $100K to avoid claw back of OAS. But life longevity is unpredictable, with a sizable RSP, a delay of withdrawing might not be a good idea ending up all money goes to the estate.

[@TheReids-l3r]

What on earth would we do without you Rhys....So so happy we found you.

[@johnnyv5995]

So glad I found you/your channel. VERY well explained, and love how you present the PROs & CONs of each scenario as there is no one size fits all. Thank you.

[@wellbuiltwealth]

Thank you for taking the time to say this :)

[@kriskafowlski4463]

Another Fantastic video Reece. I am 63 and I just learned more in a 23 minute video from you than I did in 35 years from my now just recent former financial/tax advisor. Pretty sad. Thanks so much appreciate your advice!

[@wellbuiltwealth]

Well, thank you! Glad it helped :)

[@parkerbohnn]

You didn't learn about tax brackets and rebates from the government.

[@AsianVideoGamer]

Sounds like your advisor is just a salesperson for some fund company or insurance company

[@APICSKH]

My financial advisor came up with advice to melt down TFSA between 60-65 then start melting rrsp at 69, as soon as he came up with his numbers this video came to my mind. I will certainly not keep him when time comes for retirement.

[@mikeh9180]

melt down a TFSA, what for its tax free, doesn't make any sense

[@APICSKH]

@@mikeh9180 yup, that’s what he suggested, I already fired him.

[@ianvanessen9356]

@@mikeh9180I think that’s @APICSKH’s point. I will be zeroing my RRSP first, then my TFSA if necessary, by which time my TFSA will be well over 2mil

[@andrewf2225]

Everyone should be aware that you take rsp out before you're 71 and forced to. Retired at 58, using rsp converted to rif. Cash it out when you're NOT WORKING

[@gogohappygirl]

This video is fantastic! For those still accumulating funds in their RSP‘s, I would think some of the topics in this video would also apply, so that you invest a certain amount to get your income below that threshold that you mention in this video. I love your videos, as I am on the countdown to retirement… Less than 10 years away.

[@gogohappygirl]

Also, still wondering if any of your planning software includes the less common RDSP. I’m assuming none of the planning software does because it’s such a niche product… But I wonder, when doing planning for someone with an RDSP, if you could get creative and put the self contribution part of the RDSP into the TFSA bucket of the planning software since beneficiaries are not taxed on that part of their withdrawals, and then the grants, bonds and income portion could be placed into an RSP of the planning software, as they are taxed like any other registered investment upon withdrawal from an RDSP. what do you think and how do you handle folks who have RDSP’s in their portfolios in terms of how you enter those investments into your planning software?

[@karagi101]

Doing the same thing since retiring at 53 (60 now) except I take out each year’s full amount at one time when I feel the market is peeking. Has worked well. My “problem” is that my RRSP’s have grown greatly despite my withdrawals. I’m going to have to bite the bullet and start withdrawing more even though that will increase my overall tax rate.

[@BigJoe786]

Excellent video. Finally someone who puts RRSP taxation and strategies in very easily understandable terms. You speak & explain everything really well. I thoroughly enjoyed this video. Keep up the good work.

[@williammacey9502]

Excellent video. One portion of the puzzle which is important for a sub-set of people is how income affects low income benefits. As you point out many people can control their income to a large extent. This is especially true for those who have managed to save a fair amount in TFSA (whether by frugal living or a fortunate windfall). If you have a large TFSA and reasonable RRSP and no company pension perhaps the best strategy is to delay all CPP payments until 70. If you have a frugal lifestyle and can live off savings for FIVE years you could enjoy OAS and GIS as well as other benefits for low income households such as carbon tax credits and Canadian Dental Plan. This may not apply to many people but it is a real strategy for those of modest income and no company pension or healthcare plan. I didn’t delay my CPP and it cost me 50 cents on the dollar in GIS reduction (for five years) which changes the equation for early vs late CPP by quite a bit

[@wellbuiltwealth]

You are definitely onto something. Very good food for thought for certain folk.

[@TheRMD2]

I quit my job and went to Italy one year in 2004. I put 10k into RRSP for the year before, and got the tax credit. The next year when I had no income I took it out. 😊 Think outside the box folks

[@Yemaya537]

💯

[@ananthraj9386]

Excellent articulation about the most confused stuff on the Internet. Thank you 😊

[@DilanWatson]

I think it's important to point out that there is really no downside / risk to Scenario #3. In the video you point out that the risk is that you're drawing down your personal investments early and may have to rely on government subsidies (CPP/OAS/etc) in your later years...which some people may not be comfortable with. However, just because you withdraw money from your RRSP/RIFF "early", doesn't mean it's gone. The money is still in your bank account, waiting to invested in a TFSA, Non-Registered Account, or High Interest Savings Account. It's just now out of your RRSP paying little to no tax.

[@raquelrobledo2089]

You are an answered prayer!!! Such a blessing for a people who like me, who have limitted knowledge about financial literacy.. plain and simple explanation but very fruitful and knowledgeable,, I pray that you will be bless more in all areas of your life.. God bless

[@wellbuiltwealth]

Oh wow! Thank you, kindly! And yes, He is very good to me :)

[@FooTech1976]

Wow I am blown away by the quality of this video and this channel. So descriptive and explained so that anybody can understand it. That software is amazing and the way you showed that it actually works is fantastic! Better than any other channels I’ve seen. In 7-8 years when I’m ready to start thinking about retirement hopefully you will still be in business and doing this channel and I will definitely be a client! Thank you for the fantastic Contant!

[@wellbuiltwealth]

Wow, thank you!

[@williammacey9502]

Start thinking about retirement so that you can make plans well before you reach that point

[@vzeq24]

Best RRSP video ever. I was thinking to retire early, at 60 and melt down most of my RRSP in 10 years, from 60 to 70. It validates my strategy.

[@xomunil]

The explanation provided is incredibly detailed, offering a wide range of options to choose from. Thank you

[@1983dmd]

Totally agree ! He is really good.

[@Redneckboy991]

Great video. 50% of my RRSP contributions go in as a spousal. My wife has had no income for the last 21 years. We need to take advantage of the tax savings and get that money out ASAP.

[@sjbutler2330]

I believe if you were in the future to get divorced, all the money you put in your wife's spousal will be in her name only. You won't have access to it. That happened to my ex husband. 😉

[@Redneckboy991]

@@sjbutler2330 Not exactly. My kids are grown and I'm nearing retirement. Assuming the courts are fair, all assets would be split 50/50.

[@sjbutler2330]

Red neck boy I know for a fact spousal rrspp will stay with the wife if you contributed to her plan. As I am divorced, and I got to keep it, not my ex husband. And so says the bank of Nova Scotia here in Canada

[@cindypetterson8578]

It use to be for a spousal rrsp, that you can not contribute for 3 calendar years - before your wife can withdraw under her income tax Otherwise the RRSP withdrawal will be taxed on your income tax.

[@Redneckboy991]

@@sjbutler2330 Yes of course. My wife would be entitled to keep all of her RRSP's. As I would mine. We've been together since high school (1983). I'm quite fair. The only problem we would have is if she wanted more than half of our assets.😥

[@francobina]

Wow man you are an excellent teacher! Thanks for this. It didn't give me all the answers but I know a hell of a lot more than when I started the video. Thanks.

[@wellbuiltwealth]

That’s an honest compliment! Thank you :)

[@billyrock8305]

Excellent topic choice Reese. The age 60-70 RRSP Meltdown phase is a huge topic right now as older Canadians are holding off to maximize CPP and OAS Benefits at age 70. Best to leave TFSA account untouched during this period as well. ✅ Clear and factual presentation. ✅

[@wellbuiltwealth]

Thank you!

[@billyrock8305]

@@wellbuiltwealthYou’re welcome!

[@parkerbohnn]

All for not when they clawback all your OAS. Some may at least have a chance if they take their OAS at 65 and take their CPP at age 70 for 5 years of getting something back from their OAS.

[@billyrock8305]

@@parkerbohnn By far the vast majority of Canadians do not endure clawbacks.

[@parkerbohnn]

@@billyrock8305 I don't know anyone who didn't get fully clawed back.

[@spikeboots5133]

This is a great episode. I've just found you a couple of days ago. This is the second episode I've watched. Everything you talk about here are things that are on my mind. I'm sixty and still working, maybe for one more year. I have some good cash reserves and a pretty decent RRSP portfolio. I'm thinking my strategy will be to hold off on taking pensions till I, to use your term "meltdown" my RRSP. Unfortunately for me I reside in NS and will get stung on the taxes. I guess my plan is to take the RRSP monies out in a 8 year window. Hopefully it's not too long of a time but it will allow me to keep the most of my monies after taxes. Keep up the great work and I really do like your presentation style. Good luck.

[@wellbuiltwealth]

Thank you! And good luck to you too :)

[@spitfireresearchinc.7972]

Super clear, detailed, sound advice. Wow, what a great discovery this channel was!

[@wellbuiltwealth]

Awesome! Thanks :)

[@JamesUpright]

As a Financial Planner this is one of the best videos I've seen explaining the RRSP and its draw down. One other limit/factor I don't recall being mentioned in the video is OAS Clawback. Cheers

[@wellbuiltwealth]

Thank you! But you’re right. On the ground we run into that issue all the time when trying to draw down RRSPs quickly.

[@w.7194]

Wow this is awesome....We are meeting in a couple weeks to discuss these very things and you have given me a game plan to discuss with our financial advisor....thanks very much sir.

[@brucemalakwa]

Taking early CPP and OAS and investing the money, gives access to the money if you need it. By the time you reach 70 you should have a considerable sum that will offset your loss from taking early benefits. I believe this was not incorporated in the analysis.

[@LilyBordbar]

Great information, very well explained and not holding back on explaining all that financial advisors won't tell you.

[@UmLl11f_vK8Vo1eXsNDw]

Best video by far for Canadian with RRSP to watch and think about! Nicely presented, Rhys! Wish you all the best!

[@wellbuiltwealth]

Well, thank you kindly :)

[@heatherbolichowski1910]

Great, clear explanations. Thanks! Always happy to find Canadian tax/retirement/finance channels - subscribed from Alberta! :)

[@wellbuiltwealth]

Awesome! Thank you!

[@TedMurray-o7h]

Very well explained. It seems a first task is to fully understand and quantify our monthly costs and expenditures. Something I have really put off for too long. Once I know what we will need then I can decide what we withdraw, from where and when.

[@adrianvisentin534]

All i got out of this was - move from Ontario to Alberta when you reach 71. The differencecin tax rates is significant.

[@wellbuiltwealth]

I’ll see you there.

[@mandtgrant]

But then you're living in Alberta.....money isn't everything

[@misfitbrothers776]

@@mandtgrantAlberta is amazing. I moved 20 years ago from the east and I pay 10s of thousands less in taxes than my home province friends. Plus money is everything in Canada. You will have a horrendous quality of life especially in retirement in this country due to the cost of living.

[@stevekoenig741]

Spot on and having been doing this for years!! Great explanation!!

[@heidilevens6284]

Really well explained presentation. I learned so much from this and will be adjusting me strategy. I’m planning to take early retirement and I think you just made a great case for how to do it. Thank you so much!

[@wellbuiltwealth]

So good to hear! And thank you :)

[@kingslaphappy1533]

This was the clearest, most concise analasys ever! Thank you!

[@lorimacmurdo5847]

Great video Rhys, appreciate the information, very clear and concise. Thank you!!

[@sjbutler2330]

I love the way you explain things! Also with some Humor. Way to go with Canadian content. 😊

[@wellbuiltwealth]

Thanks! 😃

[@citzsr]

Well i must say, im within my final work year, and this has been the first clarity I've had. Thanks dude, wish you were my advisor, subscribed

[@paxmundi]

Thank you for sharing your retirement tax planning video! I found the information presented in a concise and informative manner and the conquest software used to analyze Bob's retirement scenarios was something I have never seen before. Having this at one's fingertips would certainly be a bonus - but I guess that is what comes with your services. Thanks again.

[@wellbuiltwealth]

You are so welcome!

[@johanfick3932]

This was an excellent explanation - thank you! You have me subscribed 🙂

[@PoeticJusticeSC]

Excellent presentation! Informative, understandable, and relevant. Thank you.

[@123hermdagerm]

Love the video. Now I would like to see you explain the Manitoba tax rates. Holy smokes, that chart will make your head spin.

[@ianedwards9400]

I have done this in Excel. I found the assumed 5% growth rate on investments has by far the greatest effect. Changing this value to 4% or 6% makes huge difference. Any other decision negligible.

[@seansmith6779]

Rhys, thank you for the clarity. Excellent advice and information. I’m a subscriber for sure.

[@emmaionata2623]

I am impressed with all the information you deliver in such a way that makes so easy to understand! Thank so much and I subscribed. You should have so many more subscribers. THANK YOU!

[@wellbuiltwealth]

Awesome, thank you!

[@elaineferreira6750]

This is the best video I've ever watched! I just subscribed and can't wait to watch all the other videos. I'm sharing it with my friends

[@wellbuiltwealth]

Well, that is one of the best comments we’ve ever had :) Thank you!

[@mchahal22]

I am a retired financial advisor. All of these work well.👍

[@k2properties547]

couldn't agree more with most of comments below, you did a great job explaining these topics, THANK YOU, btw I like your shirts! you have a good taste

[@wellbuiltwealth]

🤓

[@peterschmidt1936]

Finally someone who explores, demonstrates, explains retirement and related tax saving strategies for us Canadians. Thank you! I will be forwarding your You tube channel to my friends and family. Question.. is there a link for the scenario calculator you use ?

[@wellbuiltwealth]

Thank you! The software is called Conquest and is only available through advisors that have a subscription.

[@NeverCryWolf64]

Wow. I am Bob Schlobb. This was very helpful. It is sad that most people probably have no idea how to retire. It is not taught so we have to seek out out the information. Thanks!

[@wellbuiltwealth]

Ha! Great to meet you Bob 😉

[@jlaskovski]

Great presentation, thank you.. question i have is with OAS clawback , if your total taxable income pension (company pension CPP OAS) & RRSP withdrawal is 104,000 (gross income) what percent is taken back. Not sure if you have a video on this.

[@philipyang2144]

By far the very best explanation without any bias, very often financial advisors and banks will tell you what is best for them.

[@LHLK-q2v]

they don't get kick backs for advise they get a wage, outdated thinking does not apply

[@marcelmed4574]

Enjoyed the video, here’s a strategy that I have heard regarding OAS specifically. Every scenario is different however even in an RRSP meltdown and assuming you are below the OAS clawback you should take your OAS at age 65. Yes it does add to your taxable income and would have an impact on an RRSP meltdown and taxes owed however because it does end at death and is not transferable to a living spouse like say a CPP survivor benefit you are better taking it at 65. I’m seeing many videos on KZbin to hold off on CPP and OAS during RRSP meltdown years however only a few have highlighted taking OAS at 65. Delaying CPP if you are married is generally the correct thing to do if your spouse has enough room to not cap their survivor benefit.

[@timcat1004]

OAS is not a taxable income if you are below the claw back amount. 100% tax free. It is not part of your total taxable income period.

[@marcelmed4574]

@1004 OAS is taxable income, why would you say it is not taxable? If your net income exceeds the OAS net income threshold then the 15% clawback begins on every dollar above that threshold. If you purely consider the average age of death for males in Canada which is approx 81/82 years of age then taking OAS at age 65 is the right choice.....assuming you can avoid the clawback. You would have to live to age of 84/85 for it to make sense to wait till 70 to receive OAS. How many of us males can say that we think we can live beyond 85...statistically your odds are stacked against you. If you have a good genetic blood line or parents living into their 90's then possibly one could argue its best to wait.

[@oldman4552]

Very good video Rhys. Both on the info provided, and the production level.

[@arthurdlowry6025]

Job will done! I have subscribed and will watch with interest. Thx

[@timcat1004]

I'm impressed. I think I already figured out scenario #1. I retired a year ago at 62. I'm getting just over 13k CPP, about 15k from my employer pension and and just converted most of my GIC's into RRIF funds. I will be pulling 14,400 in RRIF's Keeping me at a total income of around 43,000 per year. In July 2025 I will take my OAS since it is not a taxable income and I will be below the claw back amount. Don't forget that a lower income qualifies me for the carbon and GST rebaits. Heck I even got the grocery rebait. In the last two years of my employment I deferred 100% of my income tax by investing large sums into GIC accounts. I still have 27,000 in unused RRSP's that I can claim a portion of for 2023 and maybe some in 2024. (I am debt free) I did okay as a cable TV guy for 41 years and only two divorces. Does it sound like I'm on track or should I increase my RRIF's? I am in AB

[@dougwalt3683]

OAS IS taxable

[@timcat1004]

@@dougwalt3683 OAS is not taxable. It gets clawed back at over 80 K a year. So shut your piehole.

[@karagi101]

Doing the same thing since retiring at 53 (60 now) except I take out each year’s full amount at one time when I feel the market is peeking. Has worked well. My “problem” is that my RRSP’s have grown greatly despite my withdrawals. I’m going to have to bite the bullet and start withdrawing more even though that will increase my overall tax rate.

[@tcmazz]

To me it makes most sense to look at RRSP as a pre-retirement fund. Retire early and live off the rrsp until you hit 65, Then live off your other income including your cash investment account.

[@wellbuiltwealth]

Certainly not a bad plan if you can retire early.

[@tonynes3577]

Hey thanks, just discovered your channel. I'm a Canadian ready to retire in a couple yrs at 67yrs. For the last 25yrs I've been living and working in the USA as a Nurse.. I don't even remember if I paid any tax on my RRSP that I cashed out when I left Canada but I probably did because of the "withholding tax." And also the limit that the Canadian government can come after me for any unpaid tax is 10 years. I'm about to apply for CPP and I think I will get something for the 20 yrs that I did work in Canada. Thanks good info.

[@APICSKH]

Why not, you are entitled to both CPP and OAS

[@georgezuwala7075]

Excellent video so good. Thanks for doing this gives one so many things to consider. Especially the importance of low income and rrsp withdraw. That software you use is fantastic.

[@IREFUSE9]

That was a fabulous presentation! I wish you all the best and please keep posting! I’ll be passing your channel on and I hope others are!

[@wellbuiltwealth]

Thank you so much! :)

[@Wds__99]

Great video. My key takeaway is…I want that software. :)

[@philipbackman5215]

Thanks for this. Great information, and your presentation style is very close to perfect.

[@wellbuiltwealth]

Oh wow. Thank you!

[@24theMoney]

You got it my man. Money went into RSP tax sheltered, and coming out tax free baby!

[@IslandGirl755]

The federal basic personal exemption also is reduced by the amount of income you report to $13K.

[@red149]

attention on Loan shuffle strategy : at least in Quebec, you don't get you provincial marginal tax back on the interest you pay. you get it only on the interest up to profit you make out of your portfolio. to break it down let's say you paid 3000$ and your portfolio made 1000$ in capital gain or dividend. assuming you are in the highest bracket: - you get 25% (marginal federal tax) back on 3000$ - you get 30% (marginal QC tax) back only on 1000$ so your effective tax return is (750+300=1050/3000 = 30%) instead of 55% ! Took me a while to find that out !!

[@whitebreadcantjump]

Wow. That was really good and explained very well. But I'm glad I found the video and thank you for posting it. 🙂

[@brassj67]

This is probably the best explanation of these strategies I have come across. I have 2 DB pensions from the UK. Which I could start drawing a pension from right now as I am 56 and I could have started at 55 but I am going to defer them until I am 65 and get a bigger monthly pension. I will have about 60% of full CPP and OAS at age 65 but it would make more sense to defer those until I am 70. My main source of income initially if I retire at 63 would be my RRSP and TFSA plus a small private pension from the UK with a value of about $25K that i could withdraw as one lump sum. That means I would only need to withdraw about $25K from my RRSP on the first year of retirement from 63 to 64 and about 50K for the second year to keep within that lower 25% tax bracket.

[@wellbuiltwealth]

Thank you! And it sounds like you’ve got a great set up with lots of streams of income coming in for your retirement. Wonderful!

[@parkerbohnn]

That's because negative interest rates killed all the people who live in the UK. No rate of return whatsoever on your money.

[@furnitureflipping101ca]

If you delay your OAS pension until later, you will miss out on receiving the monthly GIS (Guaranteed Income Supplement). It would make more sense to withdraw your RRSP entirely by the time you reach 65 (using the tax strategies discussed here) and maintain your income below the clawback amount of the GIS (this amount is higher for those whose spouses don't also receive OAS/GIS). This is, of course, assuming you aren't making more than those levels with other sources of retirement income. However, it is a massive loss for lower-income households not to qualify/receive the GIS and the OAS pension. GIS can add $600-1000/month. There is a lot to consider, and it's a good idea to have a full picture of the available benefits and income levels at which you can lose them. I find TFSAs (if not already maxed) aren't mentioned as much as they should be - a good place to move your RRSP money, if possible.

[@mariabok4719]

Excellent and basic enough for everyone to grasp.

[@RobertLendvai]

Discovered your channel yesterday. Hugely helpful videos. Thank you. 🎉❤👋🏼

[@wellbuiltwealth]

Glad you like them!

[@josephkeith6954]

Excellent video!! Straight to the points. Question I have is why do we need RRIF other than what’s in RRIF needs to be withdraw at certain % ? Seems more complicated and limiting how the money is managed.

[@wellbuiltwealth]

It doesn’t limit how the money is managed. But it does require people to draw it down on a schedule and therefore forces people to begin paying some tax on that income. And taxes make CRA smile.

[@Jackie-plus]

This is really good. Please remind people like and subscribe. You are giving valued information.

[@fraskers]

Excellent! Awesome, thanks for all the insight. 😀

[@paintbynumbermonalisa4187]

Excellent video! I’m thinking of retiring way way before 60 and researching info when it comes to using RRSP’s and TFSA’s and company defined contribution to live on till I can avail of CPP and OAS at it’s maximum. Im excited with all the info you gave, new sub!!!

[@wellbuiltwealth]

Awesome :) Thanks!

[@DebbieCWellness]

Fantastic video - thank you for taking the time to educate, I agree with the other comments this channel this channel should have way more subscribers 🔔

[@wellbuiltwealth]

Much appreciated!

[@PennyTheriault-rd9ml]

Great advice, my only issue with the math is will I really need the same income at 85 as I do will at 65. I would like to see a scenario where I withdraw more earlier because I have the energy to spend it and less when I am sitting in a rocking chair

[@vateyogi2565]

Hats off to you. Very well explained for any Canadian retiree. Thank you.

[@TheLast2Percent]

Thanks for posting this video. Very well explain. What are risks in #2 and why would you not recommend it?

[@wellbuiltwealth]

Thanks! Any time you borrow someone else’s money, you introduce more risk. And I wouldn’t say I never recommend it, but I would say I almost never recommend it to people who are retiring because typically they are looking to reduce risk in that phase of life.

[@misty671]

Nice vid. I agree and plan to draw down my RRSP a little before I start taking CPP and OAS. The idea is to balance income, avoid peaks and troughs.

[@wellbuiltwealth]

Yes :)

[@teresateresa8933]

Also to consider.. If you take oas at 65 and you have a small or no pension, you can collect gis. I started making rsp withdrawals at age 58 and kept my taxes low and tucked leftover money in tfsa. I’m holding off cpp until 70 and from 65 - 70, I will collect a small pension, oas, gis - and tfsa , not considered income, will be used as needed.

[@agaragar21]

Exactly !!!!

[@johnchow9856]

I thought you cannot collect oas and be eligible for gis at the same time

[@BrokeDad_Rich]

What a great video! Thank you for providing such unbiased information in an easy to understand presentation

[@pargolf3158]

Great video, Thanks for uploading . I just had a couple of comments and questions COMMENT: Withholding tax on RRSP withdrawals are as follows:10% on amounts up to $5,000; 20% on amounts over $5,000 up to and including $15,000; and. 30% on amounts over $15,000. Therefore if someone wanted to withdraw, for example $20K, it makes more sense to make 4 different withdrawals of $4,999.99, thus only paying 10% (or $2,000) instead of paying 30% (or $6,000) if the money is withdrawn all at once. If these withdrawals are made on Jan 2, 3, 4, and 5 of 2024, the $4,000 difference stays in your pocket for 16 months until tax payment deadline of Apr 30, 2025. QUESTION: If you plan annual RRSP withdrawals, would it not be an even better approach to convert the RRSP into a RRIF before withdrawal, given that (given that there is a minimum amount that can be withdrawn from a RRIF without any withholding tax ( Example 4% for a 65 year old. So if this 65 year old had $500K RRSP, he can withdraw $20K on Jan 2, 2024 and pay no tax until Apr 30, 2025). Am I right about this? COMMENT: Watching the tax brackets when determining how much RRSP to withdraw without going into the next higher tax bracket is good advice, but we should watch how much income we can have before triggering OAS clawback. QUESTION: You mentioned withdrawing RRSP and then offsetting the tax by taking a loan to purchase stock and claiming a deduction on the interest but say it's risky because of stock market volatility. Is there any reason why a tax deductible loan of another type cannot be utilized ( purchasing a rental property and claiming a tax deduction on the mortgage payments)? Thank you

[@karendavis8986]

Knowledge gives you choice. Great video, love the software!

[@wellbuiltwealth]

Well, thank you 🤓

[@SnowHarp]

Fantastic Video and you kept my attention all the way through. Thank you. The software you are using at the end: is that your own or can we get hold of that for our own use?

[@wellbuiltwealth]

Thank you! It’s called Conquest. Only available through advisors though.

[@chrisstewart5381]

I learned the hard way what happens when a big chunk of RIF is in an account upon death. When my father died he had $200K plus still in the RIF and we got hit with the highest possible tax rate. I kept telling him to get the Mercedes and not the Nissan! I’m going to try and draw down my RRSP a bit quicker than he did.

[@CanuckDividends]

Great explanation. This is always the Million Dollar question for most people

[@wellbuiltwealth]

Sure is!! Thankfully, the technology is getting so good that it is becoming easier and easier to answer.

[@oanhpham8780]

Love this channel a lot … to much things to learn… thank you so much ❤❤❤❤

[@tkrtezzla]

Excellent information… Wow! I learned a lot! Should move a LIRA to my RRSP? I’m in MB. Thank you for all the information!

[@barbarahenn-pander5872]

Outstanding presentation. Thank you.

[@kriswickens8157]

Great video, I hope more people look into their retirement goals and find channels like this. If you want my opinion, I invest as much as I can outside of an RRSP to take advantage of the dividend tax credits and favorable tax treatment of capital gains (only taxed at 50%). In an RRSP portfolio the dividend tax credit is lost and capital gains are taxed as regular income instead of only 50% Being.

[@wellbuiltwealth]

Thank you!

[@kingof24]

Good information, I'm one of the poor folks in ns that take a huge tax hit, can't wait to move out to Alberta or another Provence that does not have such high taxes.

[@andrewbell8837]

I take withdrawals from RRSP in kind. I also take what i consider to be good growth stocks to not end up paying tax on larger growth. Tesla for example! I transfer in kind to my TFSA. Second i pay withholding tax with cash from my TFSA. If you use cash in your RRSP to pay withholding tax it is also taxed as a withdrawal. Withdrawals for income then come from my TFSA.

[@dkyrtata6688]

From my experience, I think everything you said is wrong (or I misunderstood the scenario you described). The cash in your RRSP to pay the withholding tax IS the tax. There is no tax on tax. For example, if you transfer $20,000 of your Tesla shares to your TFSA, the withholding tax would be 30% or $6000. Your RRSP must contain $6000 in cash to pay the tax. It won't get reduced by 30% to $4200. Moreover, I doubt any institution would allow you to pay the $6000 RRSP tax liability from your TFSA. Besides, why would anyone want to do that? Your TFSA would contain $6000 less to grow tax free.

[@curioustorontonian]

Brilliant informative video. Liked and subscribed !