How Canadian Dividends Can Both Help And Hurt In Retirement

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In the last video we highlighted how Canadian dividends receive special tax treatment which can lead to very low and even negative tax rates at some income levels. But before you go and shift your portfolio towards Canadian dividends it’s important to understand how Canadian dividends can either help or hurt your situation, especially in retirement.

Canadian dividends are taxed in a particular way which can lead to some unintended consequences, especially when government benefits are involved. While Canadian dividends can lead to lower tax rates, they can also lead to higher benefit clawbacks on GIS and OAS benefits.

If you can avoid these pitfalls then Canadian dividends, when used strategically, can allow you to withdraw from an RRSP and pay no additional tax.

In this video we’re going to look at three examples of how Canadian eligible dividends can both help and hurt in retirement.

Last video about how Canadian dividends receive special tax treatment...

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Disclaimer: This video is for educational purposes only and does not constitute investment advice or financial advice. All information provided is for illustrative purposes only and you should not rely on such information as the primary basis of your investment, financial, or tax planning decisions. Every effort has been made to ensure the accuracy of its contents. No representations, warranties or guarantees are made as to the accuracy of any estimates or calculations provided. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or recommendation, to buy or sell any financial product or securities. Before making any financial decision, you should review your situation with a financial planner.

[LiveLifeLori]

What if you had 50-60K worth of dividends per year? Would it be more beneficial then? thx

[brianmcgrath]

Vety helpfull I was doing it all wrong.
Did not khow the gross up applies to gis.
So what should I do?
Please make another video.