Sorry about the sound quality - sacrifice I had to make for that background! Thanks for watching. Here is the link to the book Retirement Income for Life: amzn.to/3TTfWoP
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
The 4% rule is hardly perfect but it is taking that percentage at the start of your retirement and increasing it for inflation every year regardless of how the market performs. It already accounts for the fact that you will sometimes be withdrawing during a down market and it does not mean you draw 4% of whatever your portfolio currently is every year.
Hi Adam, a lot of your videos discuss ways to optimize the clients withdrawals to meet their expected retirement income. But I suspect a lot of your audience has always been financially fit. Could you please go through an example at this end of the spectrum, where someone has always maxed out their rrsp, tfsa, etc and has more than they need in retirement? What would be a typical withdrawal plan in that case? Does it make sense to still burn down full RRSP early, and leave tfsa and nonreg untouched? Etc
Being in Manitoba, I plan on collapsing everything out of the government’s control for minimum and maximum withdrawals. Rather be in the drivers seat on collapsing my wealth.
If you have a RIFF I agree pull out the maximum amount, you want to get that account down so you do not leave money to the government at some time. Just because you take out the max, doesn’t mean you have to spend it if you have it. You are just trying to pay as little income tax now versus 50% if you die with lots still in it.
Excuse me if I'm mistaken. I know that in a LIF there is a maximum that can be taken each year, but I believe you can take any amount over the minimum of course) out of your RIF. So you recommend taking 100% the moment you convert your RRSP to a RIF? I think that's dumb!
@raymikes1234 I guess you're replying to me. Your first sentence says RRIF, and while you can convert a portion of a LIRA to an RRIF - the benefit of which there's no maximum withdrawal amount. While you were making contributions to a pension plan, those contributions were effectively being subsidized, just like RRSP contributions - by indefinite, annual, interest-free loans. It's convenient to "forget" this and think the government is ripping off, you or your estate. Just like the idiotic ideas about "melting down" these types of accounts - LIF's and RRIF's. When I was young, we were taught not to "cut off you nose to spite your face". Paying less tax for the dubious pleasure of having less wealth for yourself and your estate is just foolish or an ignorant behaviour.
Interesting. Fortunately I think we have enough of a nest egg to never touch the principle. However, withdrawing from the two RRSP accounts that we have without getting hammered by CRA is easier said than done as it is added to the taxable income from the nest egg. Young folks should understand that enjoying the tax deductions now from RRSP contributions only kicks the can down the road. Eventually the tax man will have their hand out to collect.
The tax implications are why I'm withdrawing from my RRSPs this year and onwards until I hit 64 as my taxable income will be the lowest it's been in years. I will end up getting most of the withholding tax back at tax time! 57 yrs old at the moment so have a few years unfil I take my CPP and OAS. I plan on melting down my entire RRSP pot by then. It will go into TFSAs instead.
@@lizp.9513that's exactly my plan. I've had RRSP matching my whole 35yr career and at 57 I'm just shy of 500k. I'm currently in the planning stages to retire at 61 and live off the RRSP until 65 or later when CPP and OAS kicks in. The big issue are those that have large RRSP savings and continue to work when they don't have to.
@@lizp.9513 interesting. I’m 54, retired and contemplating the same thing. Take out all my RIF $ before I’m 70. Take all that money and leave it in mine and my kids TFSAs and anywhere else I can hide it. I fortunately will never need that money so I’m hoping I can just leave the full non taxable amount to my kids and it has a few decades to grow untouched.
I have no idea if this is the best place to ask a question. I’m 50. I received a large inheritance and so far I had no investments or saving. So my FP maxed out our TFSA and the rest in a non reg. for investments. We don’t have RSPS, and people have said not to bother as we maybe we retiring in a year. Any thoughts with the little info I gave. Question is should I put into RSVP?
It could make sense. I would recommend having a planner run a few scenarios for you to see if it would make sense, and how much. Our office offers this service www.parallelwealth.com/planning or hire a fee for service advisor - that isn't tied to the investments like your bank.
Listen to Adam. :) DO NOT use a bank. They will charge exorbitant management fees and you will lose thousands of dollars over the course of your retirement.
The X% rule really only makes sense for very early retirement plans. It just doesn't work with the complications of retiring within a few years of CPP and OAS and pension plans. I'm following your advice and melting down a good chunk of my RRSP before 71 and investing the extra that I don't need right away. I want to get to the point that, when 71 and mandatory RIFF withdrawals starts, it's in the range I've planned for. Like you said, you can't stick to a 4% rule at 71 with an RRSP in Canada.
How do you like The exchange on the Canadian dollar in Mexico these days. 😱😱 The Canadian dollar is hemorrhaging against the Mexican peso. Just another sign of the damage the current government is doing to Canada's economy. Next winter produce from Mexico will be even more expensive for Canadians.
For my RRIFs, I plan to take an amount up to the lowest tax bracket (currently $51.4K in Ontario) for both spouse and myself since we don't currently have any other income outside of TFSA and dividends from NR account. This amount will be regardless of performance of the investments. Plan to keep doing this until CPP/OAS start in about 10 years.
Great advice, as always. A small point of clarification: There is a maximum to what the CRA allows you to withdraw from an RLIF. I believe the max is between 4 or 5%, whereas you can withdraw as much as you want from your RRIF as long as you’re prepared to pay the tax. Supposedly you can apply to take out more from a LIF if you have a life threatening health condition.
Thank you, Adam! Really look forward to more withdrawal strategy videos. Your videos are so informative. Exactly the information we need. Thank you for all of your work.
Okay can you please stop posting from warm, lovely places while we are stuck up north? Or at least put a boring pretend backdrop up. I can't concentrate on what you are saying when I am green with envy!😀
