5 Retirement Withdrawal Strategies You Must Avoid

In this video we'll go through 5 commonly used withdrawal strategies that can actually end up costing you thousands.

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DISCLAIMER: This presentation is for informational purposes only and should not be considered financial, investment, tax, or estate planning advice. All investments carry risk, and past performance does not guarantee future results. Any forward-looking statements are based on assumptions and may not reflect actual outcomes.

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TIMESTAMPS:
0:00 - Intro
0:29 - Flat withdrawal percentage
2:19 - Never touch the principal
4:38 - Consistent or increasing spending with age
7:39 - Neglecting personal savings if you have a pension
9:30 - Spending government money before your own

[monah]

Well, my meltdown started all by itself a couple of days ago 🙄. The good news is that my fitness level will be going up this summer as I use the bicycle far more than I already do. Thanks for yet another excellent video.

[dS]

Hi Adam, just wanted to thank-you for all the great Videos over the years, all the best to you!

[gimusk]

I plan to retire early and live off dividends ❤

[davidblack]

Our financial system is built around the accumulation phase, with the related messaging around RRSP season and the tax and retirement income benefits of saving, plus employer support via group RRSPs. And as our working lives are long, and have many seasons -- entry-level jobs, the messy middle if we start a family, the hope of paying off a mortgage before we retire -- there is understandably a lot of cultural attention to this heroic phase of saving and investing. Decumulation, resultingly, gets less focus, but is arguably more complex strategically, and of course, represents our reward for decades of doing with less. Videos like these by Adam raise the profile of decumulation, and demonstrate how important it is -- given all we sacrificed to accumulate -- to get it right.

[SlickSydney]

It would be great if you did a short video explaining the approximate cost of hiring you for these services. For a basic couple with say 900, 000$ of varied types of savings and a pension fund. Just an example of costs

[steelbruin]

I am waiting till 70 to take cpp. Spending rrif now instead. People who disagree say I am missing out on money if I die before 80. I tell them my income is the same now as if I took cpp and if I die earlier than planned than I won't miss it anyway.

[tvan]

Listen to this folks!! Knowledge is power!

[lobilly]

Make total sense. All income will be eventually taxed. At retirement stage, the focus is on withdrawal paying the least taxes. No advantage in keeping funds in registered accounts.

[dmd]

Many couples will divorce when one of the two is going to a public health care facility in order to pay less monthly fees at the public facility....
Again, you are right. CIBC financial planner told me to take my OAS and CPP( RRSP ) at 60. I did not, of course. The trust is gone at this moment ;)

[recoveredconservative]

The longer you delay taking CCP or old-age pension the higher the risk that you are minimizing what you'll get over your lifetime. For some it will make sense to wait until age 70 and they will benefit from waiting, for others, they won't live to collect any of it, still others, they'll collect just a small portion of it.

[Wds__]

Here’s mistake. Making a rrsp withdraw in the same year selling an investment property sale. Oppps

[PIIforever]

For someone without a pension, would it make sense to take CPP at 60 and use it to max out your TFSA?

[derekcyoung]

risk-based guardrails are a game changer. I've been using them with my clients to maximize the amount they can take from the golden goose and reducing the odds that they end up killing it early

[colinmagee]

Because both wife and I will be at the higher end of CPP, hence no OAS and close to no survivors CPP when one dies, found a happy median between financial and psychological and best case scenario vs what if scenario, retiring at 60 and delaying CPP/OAS to 65

[lobilly]

It's counterintuitive not to take cpp & oas early until my planner showed me the scenarios between withdrawal at 65 & 70. You would end up with more money by not withdrawing till 70. All because of the taxes and the 7% cpp and oas compound growth. Let the numbers do the talking.

[lovinmycoffee]

I don't completely agree. Lets say you have 2 million invested and you draw 4% and take approx 80 thousand a year out. You could probably live off the interest if you had to.

[joebobby]

Can I move my RRSP investments to Bermuda to avoid paying tax to the CRA?

[sandigrant]

Well I guess I screwed up. I started just over a year ago. Can you reverse this? Can you repay and delay?

[planesandbikes]

No we don't have to draw down our principal, but if we don't draw it down we will end up not enjoying the fruits of those millions we earned and took into retirement. But at least we have the many millions and thus a giant buffer. Now if only you could convince me wife she should stop working now too lol.

[rustykatt]

Once money is taken out, cannot have a chance to compound interest. Money spent during the go-go years cannot last 5 years of 40% food inflation is another unknown. Good luck to us all....✨😊✨