Tips for Withdrawing from a Large RRSP in Retirement

You have a sizeable nest egg set aside in your RRSPs for retirement, but how do you take this money out tax-efficiently?
This is the part that most people get wrong and why you hear so many people say they hate RRSPs.
Let’s go over a few basics on the RRSP to RRIF conversion and then compare the difference in tax bills between inefficient withdrawals and efficient withdrawals.
-Marc Sabourin, CFP®, CIM®

-----------------------

🚨Retirement Withdrawal Questionnaire 🚨

If you are interested in knowing when to pull from your RRSPs, fill out the questionnaire below to receive a personalized video with strategies that work for you.

-----------------------

POPULAR RETIREMENT WITHDRAWAL VIDEOS

-----------------------

Contact Us

If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement on track. 

-----------------------

Disclaimer
The information contained in this video message is believed to be reliable, but the accuracy and completeness of the information are not guaranteed. Harbourfront Wealth Management Inc. has no liability to viewers of this message, and its use is entirely at the risk of the viewer. Harbourfront Wealth Management Inc. does not assume any errors that may occur in this message. Please consult your Harbourfront Wealth Management Inc. advisor before investing. Typeform is an online form-building service that allows users to develop a quiz or questionnaire. Our advisors use this as one of many tools to gather information and build your financial plan. However, it is not to be considered a substitute for consultation with professional accounting, tax, legal or other professional advisor. Trans Canada Wealth Management and Harbourfront Wealth Management inc. are in no way partnered with Typeform but do pay a small subscription fee for use of the digital form service. Information is provided to Typeform & our advisors at the client's discretion

#gic #investing #retirementplanning

[billyrock]

Excellent tips! ✅

Nice to see a CFP using a single person as a case study! 👍

Leaving 1/2 of the RRIF to the CRA is totally unacceptable after Rita saved for 40 years.

[evalangley]

As ridiculous as it sounds, you need to liquidate your RRSP ASAP. If you got 500 000$ in RRSP, I would simply take my retirement at 50 and withdrawing around 25 000$ per year. You want that money to be tax free as much as possible. So basically, you only pay taxes on the first bracket for 10 000$ of your 25 000$ withdrawal. You use your TFSA to cover the rest.

[ishkan-jo]

I totally agree with you. Thanks for short and simple explanation.

[headstones]

I presume Rita had no spouse-if you have a spouse or common law named as a beneficiary of your rrsp cant it be transferred to that spouse with no tax to the estate??

[lecorb]

Great video, what software do you use?

[philbraginetz]

Don't ignore the tax bill payable by her estate on the capital gains in the non-registered account which has grown significantly during her retirement.

[opodrera]

What if you were to withdraw only the minimum from your RIFF, but you manage to stay invested, generaring a yield that is bigger than the minimum withdrawal amount. In that case, even though you're withdrawing, your RIFF is still growing and you're still not paying income tax or capital gains in those investments?

[joebender]

How do you have a self directed rrsp if you have mandated withdrawls?

[jimjackson]

You should be able to leave your money in your rrsp and take out what you need when you need it not what is ordered by the govt . That seems fair.

[catherinemori]

Why does Rita want to leave any money? Why doesn’t she live high on the hog?!

[sampalermo]

These are generalizations. It doesn’t make sense for someone who is already in highest tax bracket to withdraw from your Rrsp until you have to. At retirement your age exemption and OAS is lost anyway. Why not use the money that would otherwise have to pay to CRA and let it grow tax free until death or the death of your spouse. If I can make at 10% per year in equities without paying tax it wouldn’t make much sense to draw down on your RRSPs just to pay 50%.

[islandaerial]

Have you read or watched 'The Great Taking' yet?
Good luck with all that 'equity' tied up the the 'banks' 💸💸

[gilboman]

doesn't make sense as the value of the RRSP at then end (say 1.67M), not that full amount is taxed, only the capital gains are taxed and the inclusion rate. so not like they're going to have to pay 53.5% on the 1.67M, max would be just under 27% on the GAINS.