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In the RRIF Meltdown Strategy segment you suggest taking $20,000 and putting it into the TFSA. Is that with an assumption that he has a lot of unused room considering that the annual max is presently at $7000 a year?
Yes, if you watch my average TFSA holdings video, the average TFSA is nowhere near the limit for people in their 60s, 70s, and 80s. Of course that doesn't apply to everyone though!
No, it is 65 and above only for RRIF income! There are some pension income that qualifies if you're under 65, but it's limited: For taxpayers under 65: Eligible pension income includes: Life annuity payments from superannuation or pension plans. Payments from a RRIF or annuity payments from an RRSP or DPSP received due to the death of a spouse or common-law partner. Life annuity payments from the Saskatchewan Pension Plan (SPP) since 2010.
Hi Chris. At about 4:20 in the video you have a graphic of an older man with a cane as your 72 year old. I'm going to take offence with that graphic. 😂 The 72 year olds I know in Calgary are climbing mountains 3 days per week, playing pickle ball every day or cycling 60 km or more during the summer. I also know some 81 year olds that spend part of the winter at Big White skiing 5 days per week. Geez, even my 91 year old mom gets around without a cane. Just wait until you are 72 and you will understand how that graphic is so inappropriate. 😊
Haha I suppose that is true, my father is in his 70s and doesn't need a cane yet, you're right people are living longer these days! I hope I can be as fit in my 70s and beyond as well. Thanks for the laugh, Doug.
For a RRIF, the mandatory minimum withdrawal has no witholding tax, only a small portion of his withdrawal would have some witholding tax on it, but yes I see your point! Thanks!
You should actually be able to leave your money in your rrsp and remove it as needed instead of having to convert to a rif and take mandated minimum withdrawals whether you need the money or not. That would be a real self directed retirement plan !
Agreed! I’m a retired 42 yr old and will be drawing down my RRSP so when I hit retirement age, I won’t have a RRIF or anything mandatorily income-taxable.
I recently adjusted my Roth IRA to 50% in SCHD, 25% in SCHX, and 25% in SCHG. For my Roth 401k, I went with 70% in Vanguard's S&P 500 Index, 20% in the Vanguard Growth Index, and 10% in the Vanguard International Index. My goal is to grow my $350k to over $1 million within the next three years.
I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis. Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for sharing! I did a quick search for Rebecca Lynne Buie online, found her consulting page, and scheduled a call. She seems to have a high level of expertise.
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Want to save on taxes in retirement? We’ve helped many Canadian retirees with this problem and created a guide with 5 of our proven strategies.
Get your free copy here : blueprintfinancial.ca/retirement-tax-saving-guide
Excellent video! Thank you!
Very helpful! Thanks.
You're welcome!
Good video. Thank you.
Glad you liked it!
In the RRIF Meltdown Strategy segment you suggest taking $20,000 and putting it into the TFSA. Is that with an assumption that he has a lot of unused room considering that the annual max is presently at $7000 a year?
Yes, if you watch my average TFSA holdings video, the average TFSA is nowhere near the limit for people in their 60s, 70s, and 80s. Of course that doesn't apply to everyone though!
If I open a RIF account today, can I withdraw money immediately?
Yes you can, but be mindful of the witholding tax if you withdraw over the minimum amount (i go over an example in the video!)
Do you qualify for the pension tax credit if you convert to RRIF before the age of 65?
No, it is 65 and above only for RRIF income! There are some pension income that qualifies if you're under 65, but it's limited: For taxpayers under 65:
Eligible pension income includes:
Life annuity payments from superannuation or pension plans.
Payments from a RRIF or annuity payments from an RRSP or DPSP received due to the death of a spouse or common-law partner.
Life annuity payments from the Saskatchewan Pension Plan (SPP) since 2010.
Hi Chris. At about 4:20 in the video you have a graphic of an older man with a cane as your 72 year old. I'm going to take offence with that graphic. 😂 The 72 year olds I know in Calgary are climbing mountains 3 days per week, playing pickle ball every day or cycling 60 km or more during the summer. I also know some 81 year olds that spend part of the winter at Big White skiing 5 days per week. Geez, even my 91 year old mom gets around without a cane. Just wait until you are 72 and you will understand how that graphic is so inappropriate. 😊
Haha I suppose that is true, my father is in his 70s and doesn't need a cane yet, you're right people are living longer these days! I hope I can be as fit in my 70s and beyond as well. Thanks for the laugh, Doug.
When he withdraws 40k he only has 28k to spend or invest. taxes withheld
For a RRIF, the mandatory minimum withdrawal has no witholding tax, only a small portion of his withdrawal would have some witholding tax on it, but yes I see your point! Thanks!
You should actually be able to leave your money in your rrsp and remove it as needed instead of having to convert to a rif and take mandated minimum withdrawals whether you need the money or not. That would be a real self directed retirement plan !
I totally agree, the whole RRIF process is annoying and overcomplicated! I wish it were the way you state as well.
@ Then contact the finance minister and get others to contact him as well with this idea. You have nothing to lose and everything to gain by doing so.
You can’t have it all. If you don’t like the way RRSPs work, don’t use them.
@ Thoughtful comment tard.
Agreed!
I’m a retired 42 yr old and will be drawing down my RRSP so when I hit retirement age, I won’t have a RRIF or anything mandatorily income-taxable.
I recently adjusted my Roth IRA to 50% in SCHD, 25% in SCHX, and 25% in SCHG. For my Roth 401k, I went with 70% in Vanguard's S&P 500 Index, 20% in the Vanguard Growth Index, and 10% in the Vanguard International Index. My goal is to grow my $350k to over $1 million within the next three years.
It might be worth considering a financial advisor to avoid constant adjustments. Your selections are strong, especially for a $350k portfolio.
I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis. Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.
That's impressive! Would you mind sharing your advisor's details? I’m in urgent need of rebalancing my portfolio.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for sharing! I did a quick search for Rebecca Lynne Buie online, found her consulting page, and scheduled a call. She seems to have a high level of expertise.