Great content. Thanks! I've just found your channel and am really enjoying it. Quick question - melting down your RRSP first has the impact of front-loading your tax liability. The amount quoted of "tax saved" is a nominal amount I think. Is there a model that will analyze different scenarios based on a PV of taxes paid? Are there scenarios where it would be beneficial to delay paying taxes rather than up-fronting those payments?
The RRSP Meltdown is not for everyone. A detailed financial plan will consider multiple scenarios to ensure the meltdown is a fit. If you want to make your own forecasts there are many free financial calculators online. As well, we did a video discussing when the RRSP meltdown makes sense: ruclips.net/video/G4ep3kW9cwA/видео.html
I am going to be 65 this year have no pension my husband still works we have RRsp's around 165000. he has a pension of 24000 plus works so income of 78000. We live in Ontario I like the idea of the melt down how should we do it
If your income is low, it would make sense to draw down some of your RRSP, the basic personal amount for Ontario is 11k, for the federal government it is 14k, so drawing enough to bring your income to 14k might make sense. There are other factors that can impact the numbers, hard to provide specific guidance without all the details, if you would like to chat in more detail please contact us: www.chatwithclintonandkevin.com
For folks with investments in a non-registered account, one strategy is to use the money to purchase a whole life insurance policy, which allows the funds to grow tax-free and, when you pass, the money is paid out tax-free to your beneficiaries. We discuss that strategy in this video: ruclips.net/video/tuAlLM4Vzlg/видео.html
Hey Pat, you are correct. Unfortunately RRSP withdrawals do not qualify as pension income and cannot be split. However, after the age of 65, RRIF withdrawals do qualify and can be split.
You should be able to leave uour money in your rrsp and withdraw it as you see fit not as mandated by the govt in a rif.That way you will have a margine of safety when or if you reach 90. A self directed retirement plan should be self directed right to the end.You should be pushing to change the law to allow this not telling us the way it is as if that makes sense.
Good post. Most financial planners want their clients to die rich, early CPP with large RRIFs
Great content. Thanks! I've just found your channel and am really enjoying it. Quick question - melting down your RRSP first has the impact of front-loading your tax liability. The amount quoted of "tax saved" is a nominal amount I think. Is there a model that will analyze different scenarios based on a PV of taxes paid? Are there scenarios where it would be beneficial to delay paying taxes rather than up-fronting those payments?
The RRSP Meltdown is not for everyone. A detailed financial plan will consider multiple scenarios to ensure the meltdown is a fit. If you want to make your own forecasts there are many free financial calculators online. As well, we did a video discussing when the RRSP meltdown makes sense: ruclips.net/video/G4ep3kW9cwA/видео.html
Great Video Guys! Thank You
Thanks for watching!
I am going to be 65 this year have no pension my husband still works we have RRsp's around 165000. he has a pension of 24000 plus works so income of 78000. We live in Ontario I like the idea of the melt down how should we do it
If your income is low, it would make sense to draw down some of your RRSP, the basic personal amount for Ontario is 11k, for the federal government it is 14k, so drawing enough to bring your income to 14k might make sense. There are other factors that can impact the numbers, hard to provide specific guidance without all the details, if you would like to chat in more detail please contact us: www.chatwithclintonandkevin.com
What is whole life? How does whole life fit into a reduction of taxes?
For folks with investments in a non-registered account, one strategy is to use the money to purchase a whole life insurance policy, which allows the funds to grow tax-free and, when you pass, the money is paid out tax-free to your beneficiaries. We discuss that strategy in this video: ruclips.net/video/tuAlLM4Vzlg/видео.html
How about RRSP Meltdown starting at 55
The key to the RRSP Meltdown is your tax rate. If you are in a low tax bracket it could make sense to start drawing down the RRSP. Even at 55!
Fantastic thank you
Glad we could help!
You can’t split rrsp withdrawal. You can split riff
Hey Pat, you are correct. Unfortunately RRSP withdrawals do not qualify as pension income and cannot be split. However, after the age of 65, RRIF withdrawals do qualify and can be split.
You should be able to leave uour money in your rrsp and withdraw it as you see fit not as mandated by the govt in a rif.That way you will have a margine of safety when or if you reach 90. A self directed retirement plan should be self directed right to the end.You should be pushing to change the law to allow this not telling us the way it is as if that makes sense.