RRSP Meltdown vs RRIF Minimum Withdrawal (Save Thousands)

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RRSP Meltdown vs RRIF Minimum Withdrawal (Save Thousands)
𝗦𝗰𝗵𝗲𝗱𝘂𝗹𝗲 𝗮 𝗰𝗮𝗹𝗹 𝘄𝗶𝘁𝗵 𝗗𝗮𝘃𝗶𝗱 📅 calendly.com/a...
Navigating the complexities of retirement income planning in Canada can be challenging, especially when deciding between an RRSP meltdown and RRIF minimum withdrawals. Our latest video, "RRSP Meltdown vs RRIF Minimum Withdrawal," is your essential guide to understanding these two strategies, helping you make informed decisions that maximize your retirement savings and minimize your tax liabilities. Tailored specifically for Canadians, this video is packed with expert advice, practical examples, and actionable tips to ensure your retirement planning is on the right track. Watch now to unlock the secrets of optimizing your retirement income!
An RRSP meltdown is a strategic approach to withdrawing funds from your Registered Retirement Savings Plan (RRSP) before converting it into a Registered Retirement Income Fund (RRIF). This method involves drawing down your RRSP while using other strategies, such as tax-efficient withdrawals. We break down how an RRSP meltdown works, its benefits, and the scenarios where it might be the right choice for you.
Once you convert your RRSP into a RRIF, you’re required to make minimum withdrawals each year. These withdrawals are subject to taxation, but they also provide a steady income stream during retirement.
One of the most critical aspects of retirement planning is understanding the differences between an RRSP meltdown and RRIF minimum withdrawals. We provide a side-by-side comparison, highlighting the pros and cons of each approach. This segment is designed to help you evaluate which strategy might be more beneficial based on your unique financial situation, retirement goals, and tax considerations.
Tax efficiency is a crucial factor in retirement planning. We explain the tax implications of both RRSP meltdowns and RRIF withdrawals, including how each option affects your overall tax burden. By understanding the tax landscape, you can make more informed decisions that preserve your wealth and reduce the risk of outliving your savings.
How you manage your RRSP and RRIF can also impact your eligibility for government benefits like Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). We explore how different withdrawal strategies might affect your government benefits and what you can do to minimize any negative impact.
To make these concepts more relatable, we include real-life examples of Canadians who have successfully navigated their retirement income using either an RRSP meltdown or RRIF minimum withdrawals. These case studies provide valuable insights into how different strategies can work in practice, helping you see the potential outcomes of your choices.
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𝗪𝗵𝘆 𝗬𝗼𝘂 𝗦𝗵𝗼𝘂𝗹𝗱 𝗪𝗮𝘁𝗰𝗵:
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By the end of this discussion, you’ll have a clearer understanding of the driving forces behind rising interest rates, market volatility, CPP / OAS, Retirement planning and the tools you'll need for protecting your assets and ensuring a secure financial future.
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Disclaimer: This video is for informational purposes only and should not be considered as financial advice.
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Опубликовано:

10 сен 2024

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Комментарии : 44

@everymomentisagift Месяц назад

Thank you for this video. Like your RRSP withdrawal strategy. My dear sister passed away at 61. She had HOOPP worth $220K and RRSP $144K. Thank God she put a surviving benefit on both. However, the tax bill for her year of birth was $44K. I felt bad for her as she saved since early 20's and never got to use the money. So yes, use up the RRSP 1st for sure then TFSA near the end of life so it's non taxable. That's what we plan to do.

@billyrock8305 Месяц назад

Great RRSP meltdown case study 📖 👍 More SINGLES examples appreciated! That’s most of us here. And most without a DB plan. 😊

@MrXR77 Месяц назад

RRSP is your enemy at retirement time. That's why I stopped working at 60 and started the RRSP's meltdown.

@edsouth1828 Месяц назад

After listening to your video I adjusted my RRSP -RRIF to have cleaned out by 85. Your numbers make a lot so sense.

@richardwakefield8616 Месяц назад

Thx for confirming our strategy. I too have all our numbers on a spreadsheet projected to age 90. Same as you have described.

@MKD319 29 дней назад

Thanks for this video. We have no where that much - wish we did.

@user-vn9bc7hp4n Месяц назад

What about TFSA limits? They both have 100k in their TFSAs already, aren’t they?

@DSP_2.0 24 дня назад

TFSA limits apply to deposits into the account only. There is no limit on how much money is in the account or how much interest/returns generated by the money in the TFSA.

@nyonya02 Месяц назад

Thank you❤ stragety

@els1732 26 дней назад

Great video. Easy to follow

@IKTGWIW Месяц назад

It would be great if you could do a video on RRSP meltdown for a retired 68 year-old single person with over one million dollars in a non-registered account, $600,000 in RRSP and a maxed out TFSA account. He is already receiving OAS and CPP and company pension payments. I guess there is no point in trying to melt down the RRSP since there will be OAS clawback? Thank you.

@AaronWealthManagement Месяц назад

How's this example? ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-JwAUvi6iug0.htmlsi=dsdFFrtKC0QQ1OH_

@satinderbank4607 Месяц назад

Hi Aaron, excellant video as always. Keep driving the point home about leaving as little as possible in RRSP bucket and as much as possible in TFSA (as long as Govt. does not find way to tax that as well). I was wondering if there is any insurance safe heaven that can be leveraged by someone in late 50's (or early sixties) who does not have any coverage but is otherwise insurable. Would love to see more content with strategies marrying RRSP meltdown with Cash benefit Insurance. Thanks.

@AaronWealthManagement Месяц назад

Hi Satinder, Thanks for your comment. There's no cash advantage in melting down an RRSP to purchase whole life. Both the RRSP and Life insurance shelter tax. The advantage would be a slight increase in your estate value. Using a non-registered account or another source of income would be a much better option to fund the whole life insurance.

@satinderbank4607 29 дней назад

@@AaronWealthManagement Thanks for your insight and guidance. much appreciated.👍👍

@jasonlangdon5141 Месяц назад

Thanks!

@jimjackson4256 Месяц назад

You should be able to keep your money in your rrsp until you die and withdraw what you want when you want instead of being told what to withdraw by the govt via a rif.That seems fair to me.The govt gets to tax what is left at the max marginal rate when you die anyway.

@richardwakefield8616 Месяц назад

Which is 50% taxes on money left in a RIF.

@jimjackson4256 Месяц назад

@@richardwakefield8616 Yes but at least you have a margin of safety when you are very old.

@HeinrichReusch Месяц назад

TFSA limits don't seem to exist in this example. The whole proposal therefore will not work!

@AaronWealthManagement Месяц назад

In this example, started with $15K unused room for one and $40K unused room for the other. Philip has 17 years of nearly zero deposits to her TFSA with 3 years of withdrawals. That's why the deposits are higher later in life when he has excess cash flow. Similar situation for Elizabeth.

@cyclone1080 Месяц назад

@@AaronWealthManagement Just curious how Elizabeth's TFSA went from $475,000 at 80 years old, to $975,000 at 90 years old. She contributed ruffly $150,000, but her TFSA increased $500,000. Am I missing something?

@caperboy1169 Месяц назад

Who spends $95000/ yr when retired? I’d rather see more realistic retirement plan

@AaronWealthManagement Месяц назад

Its all relative. Let's say your family pre-retirement income was $500K. They're lifestyle is likely very different compared to a family income of $150K. You would also expect they're retirement choices are very different given the retirement assets available. $130K pre-tax is about $95K after-tax. Here's a link to a plan where they only spend $45K after-tax but are snowbirds and spend an additional $35K. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-dCrkd6YEaNA.htmlsi=nOIqZLc0GXN7xPtQ

@caperboy1169 Месяц назад

@@AaronWealthManagement my point is that most of these are directed at those people only .

@helgabruin2261 23 дня назад

I know! I have just over $1,700. per month. This includes a full Guaranteed Income Supplement.

@rally_chronicles 19 дней назад

@@caperboy1169good. I need him to show me what it will look like for successful people like myself.

@baldbollocks Месяц назад

F Y I the average Canadian has 112 k in their Rrsp. Not 900000.

@rally_chronicles 19 дней назад

I'll prob have 3 mill

@cyclone1080 29 дней назад

Just curious how Elizabeth's TFSA went from $475,000 at 80 years old, to $975,000 at 90 years old. She contributed ruffly $150,000, but her TFSA increased $500,000. Am I missing something?

@AaronWealthManagement 29 дней назад

Good eye. TFSA deposits in the earlier years were quite low and there were a few years of withdrawals. As Elizabeths cash flow increases she has available cash for higher TFSA deposits. Also the plan reflects increases to TFSA annual deposit amount.

@WONGOTech88 12 дней назад

Hi. Can you address Spousal RRSP/RRIF? My wife and I have personal RRSPs and Spousal RRSPs. Would my wife be the annuitant of my Spousal RRSP (i.e., make withdrawals from my Spousal RRSP) and I am the annuitant of her Spousal RRSP? Tehn when I convert my RRSPs to RRIFs, do I convert my Spousal RRSP to a Spousal RRIF? Since I am not the annuitant of my Spousal RRSP, then I would not be able to draw from my new Spousal RRIF? Should my wife convert her Spousal RRSP and roll the savings to my new personal RRIF? Thank you for your insight.

@yobuddy2920 Месяц назад

15k to 28k yearly contributions into a TFSA because we're assuming the yearly contribution limit will increase by then?

@AaronWealthManagement Месяц назад

Yes and they have unused room. In this example, started with $15K unused room for one and $40K unused room for the other. Philip has 17 years of nearly zero deposits to her TFSA with 3 years of withdrawals. That's why the deposits are higher later in life when he has excess cash flow. Similar situation for Elizabeth.

@gioz.4785 Месяц назад

What province you’re using for income tax rate? Your example show a very low income tax rate.

@AaronWealthManagement Месяц назад

Ontario

@chrisyyz5220 Месяц назад

Would converting rrsp to rrif first, then meltdown/withdraw rrif at higher than rrif minimum, achieve the same tax and saving effect as a rrsp meltdown? Withdrawals from rrif can be income split with spouse after age 65. Would this not be the benefit of converting to rrif first, before meltdown?

@AaronWealthManagement Месяц назад

It's about the same. RRIF first then meltdown results in $7K less tax over your lifetime and about the same estate value.