RRSP Withdrawals Explained | Maximize The Use Out Of Your RRSP

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  • Опубліковано 6 вер 2024
  • Our free retirement ready e-book: www.parallelwe...
    In order to maximize the use out of your RRSP, it's extremely important to understand the rules related to withdrawing money from your account.
    Pre-retirement, there are two main reasons why you would withdraw from your RRSP: The home buyers' plan, and the lifelong learning plan. These two plans are great options to fund a home purchase or if you are looking to further your education. The third reason would be if you are in a low tax bracket. Maybe you were laid off or you're at home raising your children...there are a number of reasons why you may be in a lower tax bracket during your professional career, and it may be helpful to start withdrawing funds from your RRSP in those times to reduce your tax bill.
    At retirement, you're going to need to convert your RRSP to a RRIF. This must be done by at least the age of 71, although it can be done earlier than that. RRIF income can be split whereas RRSP income cannot, so that is something to look into when you are planning on converting your RRSP to a RRIF.
    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 savings plan on track.  You can email Info@Parallelwealth.com and we will set up a meeting with you.
    -----------------------------------------
    DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
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КОМЕНТАРІ • 197

  • @sensorysoundsofficial
    @sensorysoundsofficial 3 роки тому +14

    I could go on and on about how much I appreciate your videos but I'll keep it short... very informative and you are a born teacher. I wish I educated myself sooner but better late than never.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +2

      Thanks so much. We love that our videos are making an impact and helping people. Thanks for tuning in.

  • @MegsCarpentry-lovedogs
    @MegsCarpentry-lovedogs 3 роки тому +8

    I really needed to know about the RRIF situation...and I appreciate how you did a short summary at the end of your presentation. 🇨🇦. 💯

  • @yurizhivago4848
    @yurizhivago4848 3 роки тому +5

    Thank You for the great advice.
    I did not know about the $2000 Pension Income Tax Credit so yeah I may start drawing out my RRSPs into a RRIF at 65. I have a great financial rep at my bank but it sure helps to know what to talk about before going there and you are great for helping with that.

  • @awoken1445
    @awoken1445 2 роки тому +2

    Kicking myself for not opening TFSA before I put so much into my RRSP. Information (UA-cam) wasn't readily available 25 yrs ago when I first started saving for retirement, so I thought I was doing the smart thing. Now I will missing out on GIS because I will be getting RIF money. Whereas TFSA money is tax free and doesn't affect GIS . Hindsight...

  • @RC-fh2lk
    @RC-fh2lk 3 роки тому +9

    Just found your channel and subscribed!!! About 3 years away from retirement and your videos are a difference maker. Great information...thanks

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      Glad they are helping and thanks for tuning in!

  • @ssul8739
    @ssul8739 3 роки тому +3

    Thank you very much, good to know converting RRSP to RIF at 55

  • @woojimful
    @woojimful 3 роки тому +8

    Thank you for your video, learn something new about converting RRSP to RIFF from you.

  • @kenp4464
    @kenp4464 3 роки тому +1

    Thanks for that, and subscribed. Retired today at 51. I have a pension and will start dwindling down the rrsp tank a little at a time.

  • @rishtunkhwa8990
    @rishtunkhwa8990 2 роки тому +3

    Your way of presentation makes it easy to follow and understand the rules. Thanks.

  • @mikebarnsley9629
    @mikebarnsley9629 3 роки тому +5

    Brilliant video. I've just retired and I'm starting this process. Very helpful, Thanks

  • @Gurkha9
    @Gurkha9 3 роки тому +9

    Really good information on this channel, the best I've encountered on UA-cam. Glad to have stumbled upon your channel. Subscribed.

  • @the1andonly
    @the1andonly 3 роки тому +1

    I'll be 59 in October and have an okay RRSP. Being self employed I'm not sure when I'll retire, but really need to educate myself on the options. Subscribed.

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Thanks for watching. Lots of content in other videos to help you out.

  • @jaxwylde2139
    @jaxwylde2139 2 роки тому +4

    Hi Adam. A future topic suggestion (if you ever run out :-) is LIRA's / LIF's. How they're different from RRSP/RRIF and how they're similar Why do people have them, etc.. I realize the audience interested in that topic is not as large as those interested in RRSP / RIF, but I wouldn't be surprised if that number is still a fair size. Almost everyone I know (that has a RRSP) also has a LIRA of some size (from previous job), and almost all of them just think exactly the same as a RRSP (just named differently, for some reason...LOL).

    • @ParallelWealth
      @ParallelWealth  2 роки тому +1

      Thanks Jax, it's on the list already and will be out hopefully by end of this year.

    • @gordonskillen5924
      @gordonskillen5924 Рік тому

      @@ParallelWealth please contact me te your fee for service

  • @johnnyv5995
    @johnnyv5995 3 роки тому +2

    Thank you so much for the info! I'm 53 planning on retiring in 5 years. Plan is to cash out ALL our RRSP ($60k/year) by age 64. Converting RRSP into RRIF and splitting this 'income' will help a great deal in reducing our tax hit as this will be our only revenue (waiting 'til 68 before applying for pensions). We will then take the $ we don't need and most likely max out our yearly TFSA contributions :)

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Glad it was helpful! Sounds like a solid plan.

    • @johnnyv5995
      @johnnyv5995 3 роки тому

      @@ParallelWealth Do you handle pension planning for Quebec residents or can you recommend anyone? Thanks.

  • @PoeticJusticeSC
    @PoeticJusticeSC 3 роки тому +3

    Great explanations. Clear and comprehensive.

  • @robrobertson8584
    @robrobertson8584 3 роки тому +9

    Terrific information Adam! So many different options to think about when it comes to how to tax effectively access the funds in your RRSPs.

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      There are definitely many ways to get your money out tax efficiently - the problem is the solution is different for everyone!

  • @kristiesamson2784
    @kristiesamson2784 3 роки тому +2

    School never taught me this stuff, the bank doesn't go well into detail and my social circles are not as informative themselves. Thank you for your videos

    • @ParallelWealth
      @ParallelWealth  3 роки тому +4

      If I can somehow get this stuff into the school system our world would be so much better off. The amount of useless things they teach could be replaced with basic financial stuff.

  • @patsutherland7284
    @patsutherland7284 2 роки тому +1

    Timely info. Just converting to rrifs now. 50% tax with no significant other? Shocking. That will cut Granddaughter's education fund in half! 😳

  • @michaelboom7704
    @michaelboom7704 3 роки тому +1

    You spoke a little more here on a question you answered earlier for me....thanks.

  • @teddytran9010
    @teddytran9010 3 роки тому +2

    Thank you for the information. Learned a lot after watching this.

  • @craftsANDRANDOMSTUFF
    @craftsANDRANDOMSTUFF 3 роки тому

    Hey Adam , The information was terrific ! Thanks for taking the time. Would wait for next series.

  • @paddyanne2024
    @paddyanne2024 8 місяців тому

    Your explanations are super, thank you so much for sharing your knowledge.

  • @Wolfemother3441
    @Wolfemother3441 3 роки тому +1

    Thank you very informative, it answered lots of questions.

  • @RavinderSingh-hy7iz
    @RavinderSingh-hy7iz 3 роки тому +2

    Very nicely explained. Very clear. Thanks.

  • @NoristheCat
    @NoristheCat 2 роки тому

    Thank you for your awesome channel and the fantastic information that you provide!
    Clear and to the point!

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      Thanks Noristhecat, much appreciated and glad it is helping.

  • @jimjackson4256
    @jimjackson4256 Місяць тому

    You should be able to leave your money in your rrsp rather than having to convert it to a rif at 71. You should be able to withdraw or leave your money in your rrsp and withdraw it when you want .That seems fair to me.

  • @jeffseto6558
    @jeffseto6558 3 роки тому +1

    Nice video. Learned something new about incoming splitting and RRIF.

  • @honoratam9925
    @honoratam9925 2 роки тому +1

    Thank you for this informative video.

  • @Nick-sk1qp
    @Nick-sk1qp 3 роки тому +1

    Very good information, looking forward to your next video. Thanks

  • @pjhj3687
    @pjhj3687 3 роки тому +1

    Thank you. I'm 60. So I would be wise to convert my RRSP into a RIF NOW and begin to withdraw the minimum amount without withholding tax and put the withdrawal into savings.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      It likely could. If it doesn't create a big tax bill. Remember, just because there it no withholding tax doesn't mean there isn't any tax!

    • @pjhj3687
      @pjhj3687 3 роки тому +1

      @@ParallelWealth Oh, I see. NO withholding tax BUT I will be taxed on it as income.

  • @IFRSKIES
    @IFRSKIES 3 роки тому +1

    Good video. Look forward to more.

  • @desireechin7267
    @desireechin7267 Рік тому

    Hi Adam, just stumbled upon your channel.. great info. Subscribed!
    Sharing with friends

  • @195602
    @195602 3 роки тому +1

    Very helpful...Thank you!

  • @duiaita2924
    @duiaita2924 3 роки тому +1

    What order do you recommend to withdraw from your accounts upon retirement and why? Ie RRSP, RIF, NON-REGISTERED AND TFSA. Love your channel and have been watching all your videos. Thx for your information. Well done.

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      It's usually a mix of all of them. An RRSP meltdown usually works great, but in combination with the non-reg and TFSA. Almost always it will make sense to use the non-reg before TFSA, unless there is a large gain.

  • @janicemeighan1847
    @janicemeighan1847 2 роки тому +1

    Fantastic content! Thank you 🙏

  • @vincenttamesis1
    @vincenttamesis1 3 роки тому +2

    another great info. thank you

  • @riadarabieter5418
    @riadarabieter5418 3 роки тому +2

    Thanks for the video, Adam; it’s very informative. I’m 60 years old and planning to retire at 65; why would one transfer their RRSP into RIF? Personal circumstances aside, I would have thought you could lose RRSP growth (let’s assume 6% annual growth). I understand the advantage of moving to RIF if the RRSP is not performing well.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +6

      RRIF can be invested the exact same as your RRSP. So moving from RRSP RRIF makes no difference for the investment.

  • @janarkas252
    @janarkas252 3 роки тому +2

    wow, great info!! Thank you

  • @frederickbouari2625
    @frederickbouari2625 2 роки тому +3

    Thanks for the content. Let's say you pull out $20k in the year and your income is 0 for that year. Do they refund you the 30% holding tax since you don't have to pay anything in taxes that year?

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      Yes, you will get a tax refund at tax time when you file.

  • @davdride4850
    @davdride4850 3 місяці тому

    Adam my RRSP is in my brokerage account. Pays interst monthly I reinvest now. But when I retire can I just transfer that interest pay out every month to my spending account and claim as income of course

  • @dianetownsend9813
    @dianetownsend9813 Рік тому

    Dont forget if turned into RRIF 2K is a pension deduction on taxes at age 65 i believe

  • @cdyanand
    @cdyanand 3 роки тому +2

    Solid video, thank you

  • @sjbutler2330
    @sjbutler2330 5 місяців тому

    It's now 2023. I'm retired,middle 60s. I get a work pension, cpp and oas. I have a fully topped up tfsa.
    and have not contributed further to my rrsp for at least 5years. I will be inheriting some money soon.
    Can I further contribute to my rrsp? And yearly, how much?. I intend also future years to keep topping up my tfsa as well. Also any safer ideas what to invest in
    So that my yearly income stays lower so that eventually down the road, I don't get claw backs on oas. Please respond. Thanks Sandra.
    5 years

  • @teresa4565
    @teresa4565 3 роки тому +2

    Scotia Bank said that by withdrawing money from the rsp in chunks (such as 5K, 5K, 5K and 5K), once you go to take the 2nd, 3rd and 4th amounts, they will withhold 20%.
    The only way to get around it is if you withdraw the money from different institutions as one doesn't necessary know about the other withdrawal.
    Also, keep in mind that you are charge for each withdrawal, so that needs to play into your figuring.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +2

      Teresa, most financial institutions won't charge a fee - it's a money grab...as for the 20%...I have been doing this for 15+ years and never run into this. It's a bank policy and maybe a sign that you should look elsewhere.

    • @teresa4565
      @teresa4565 3 роки тому +1

      @@ParallelWealth It's scotiabank that charges $25.00 for each withdrawal, I just assumed all banks did this - I'm taking from Royal Bank in August, be interesting to see if they charge a fee as well.
      And again it's scotia mcleod who said they hold the extra percentage, just so people know...
      It's not the end of the world as I do get it back when I do my taxes but it's too bad that it's taken at all..
      Thanks for the response.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      @@teresa4565 again it's the banks that are the issues....maybe get away from the major banks.

    • @jeffseto6558
      @jeffseto6558 3 роки тому +1

      @@ParallelWealth I spoke to my rep at RBC and asked the same question - minimum withholding tax each time.

    • @kathybragg3009
      @kathybragg3009 3 роки тому +1

      @@teresa4565 just reading this post. Td also charges 25.00 which is infuriating looking at all the money they made this year again

  • @stifflick
    @stifflick 2 роки тому

    Suppose you have RRSP and at retirement say it’s giving divided income of $4000/mth , so your actual RRSP contribution amount invested is not decreasing, the dividends is enough for you to live off. How is that RRSP money treated, since it sounds like they are expecting it to go down as you get older and expect you you increase you withdrawals as shown on that RIF table?

  • @GaneshD123
    @GaneshD123 Рік тому

    Excellent, thanks very much!

  • @mgora7007
    @mgora7007 7 годин тому

    I am thinking it is a bad idea to move my RRSP to RIF before age 65 because my wife's pension will be zero and at 65 I can pension split my RIF.

  • @mikebowers7719
    @mikebowers7719 5 місяців тому

    Great video Adam 👍👍

  • @andrewolejarz5293
    @andrewolejarz5293 3 роки тому +1

    8:46 I'm confused as to when it would be beneficial to have a 30% withholding tax versus 10%. In the example you gave, $5000 taken out 4 times would give us 18000 in taxable income, whereas $20000 taken out once would give us 14000 in taxable income.
    Unless this extra amount puts us over a threshold for not being able to receive other benefits, I don't see the point in paying more withholding tax. Great video, though!

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      Withholding tax is just prepaying the tax you will owe. So this strategy is more based on your marginal tax rate. If you fall into 30%, then I recommend not doing it in 4 lumps as you would have a tax bill at tax time.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +3

      @@wesbuss138 agreed for most - unfortunately some/many people can't save properly and when tax time comes they have a tough time making payment. Trust me, for many people having more withheld is a good thing!

    • @MegsCarpentry-lovedogs
      @MegsCarpentry-lovedogs 2 роки тому

      ​@@ParallelWealth Yes, it is the "ahead planning for a tax bill" that gets people if a withholding tax is not done. Gordon Pape, a Canadian guru on Canadian wealth management, did make an argument that supports Wes Buss above; that it is better to have the money in your pocket and not the government because the government would be using your with holding tax money to their advantage by using it to invest and earn income. So might as well keep it in your pocket to invest and earn income, then if they do it. Yet, like ADAM points out, many people can't save properly and when tax time comes they have a tough time making payments. It is a choice people have to make based on their own personal financial situation and how they manage their money. Thanks for the interesting discussion. 🍁🇨🇦👍

  • @yen_mytran5435
    @yen_mytran5435 3 роки тому +1

    Thank you so much

  • @robkienapple141
    @robkienapple141 3 роки тому

    I'm a bit confused. I retired at 53. My account says I can income split on my company pension with my spouse right now, at 53 years old. I also have a sizeable RRSP. Can I turn my RRSP into a RIF right now, at age 53 and income split the proceeds of the RIF withdrawals with my spouse right now? She has no income. We have always only been a one income couple. Thank you for the information.It has given me food for thought. Appreciated.

  • @elizabethchwakanowski5067
    @elizabethchwakanowski5067 2 роки тому +1

    Thank you sir

  • @jimreggler6130
    @jimreggler6130 3 роки тому +1

    I just started watching your great videos. Have you done one about registered annuities?

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      Jim, I haven't yet, but will add it to the list. Thanks.

  • @ExcellentDude
    @ExcellentDude 3 роки тому +2

    Great information!

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      Thanks! Keep up your great videos as well. Definitely have gained some excel insight from your channel.

    • @ExcellentDude
      @ExcellentDude 3 роки тому

      @@ParallelWealth Thanks!

  • @bimmerguye23
    @bimmerguye23 2 роки тому +1

    Hi Adam, I am new to your channel, and I love your videos. Very informative material, and all Canadian. I have a question, do you have any video regarding transferring in-kind stocks i.e from a direct investment account to a TFSA or RRSP and other accounts. Is it better to sell the stocks and transfer the cash or just transfer the stocks? This is the time to contribute or replace funds to TFSA. I already shared your channel with several friends. Thank you in advance

    • @ParallelWealth
      @ParallelWealth  2 роки тому +1

      It's really shouldn't matter as the tax will be due regardless if you sell or transfer. I prefer to transfer to save any transaction fees.

  • @southerncomfort971
    @southerncomfort971 2 роки тому +1

    This was amazingly interesting. But ??? When you say only part of RRSP to RRIF what happens with the balance? I understood that all needed to convert to RRIF in the year you turned 71? What happens to the RRIF once you pass? I have 2 sons that are in my Beneficiary at 50 % each. Also is this Canadian law, Provincial law or are you in the United States. As are most Video's ... Thanks

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      Yes, past 71 all has to be converted - but before 71 you can convert just part of your RRSP to a RRIF.

    • @southerncomfort971
      @southerncomfort971 2 роки тому

      @@ParallelWealth Thank you dpes this mean i can separate 1 rrsp to say 4 RRIF's before 71 and only start using 1 at a time ? so use 1 say now and only start the other 3 once the first one is done or nearing done?

  • @monishpawar3381
    @monishpawar3381 3 роки тому

    Hi, Thanks for the video. A question - The government says if you access RRSP for Home Buyers Plan, then you must plan to move into that place within a year of possession. My question is - What if the person has changed his address to that new address and did not move as life situation changed and the move in plans have been delayed a bit. Is the government a bit flexible there?

  • @normjones6916
    @normjones6916 3 роки тому +2

    I'm 67, superb info, one of your best ones, can an Omers avc fund be turned into a riff ?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Not that I know of

    • @normjones6916
      @normjones6916 3 роки тому

      @@ParallelWealth Thats one of the things they don't tell you, but it has good returns. Where could I look ?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      @@normjones6916 there is a contact us section on their website, I would start with that. www.omers.com/additional-voluntary-contributions-avcs

    • @normjones6916
      @normjones6916 3 роки тому

      @@ParallelWealth I checked the docs they have a AVC income plan simular to a riff but do withholding tax and no mention of a tax benefit credit, but funds can be transferred out into a rrsp

  • @alwayspositive999
    @alwayspositive999 2 роки тому +1

    Great vid - does a person who does not work - but gets little rental income but he still contributes to his rsp each year - should he b taking out rsp frm his built up rsp acct?

    • @ParallelWealth
      @ParallelWealth  2 роки тому +1

      So RRSP contributions make sense? Usually only 50k it would...so maybe consider stop contributing and start redeeming. Again, limited details but just my 2 cents

  • @eugeniacaputo3613
    @eugeniacaputo3613 2 роки тому +1

    Hi Adam love your videos!
    I have a question? Any money in RRSP before retirement can affect the money I will received in my CPP? Thank you!

  • @harishdewangan2661
    @harishdewangan2661 3 роки тому

    This is a great video packed with so much information. I need an advice.
    I am in my mid 30s and thinking of retiring between 45-50 yrs of age. By then I would be having close to 150k in RRSP, I wanted to know if I withdraw 20k each year from RRSP with no other income, will that be taxed? Also, what happens if I move to my home country and settle there, would that impact the tax?

    • @canadianjatti
      @canadianjatti 2 роки тому

      Yes, you will be taxed on the 20k a year as that would be your taxable income for those years. With income that low though I doubt it would be a lot.

  • @jolu88
    @jolu88 2 роки тому

    Hi Adam. I'm a new subscriber to your channel. Thank you for the pertinent and informative videos. I'm 52 and hoping to retire at 55 very shortly... QUESTION: Can RRIF income be split as early as age 55 or must we wait til 65 to split ?? Thanks and keep up the great work. Joe

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      RRIF is 65 for splitting

    • @James-ye7rp
      @James-ye7rp Рік тому

      @@ParallelWealth Do both spouses have to be age 65? Thanks

  • @joyparkinson9374
    @joyparkinson9374 2 роки тому +2

    Hi Adam, I find your videos very informative. My question is regarding RRIF withdrawals for expats. Do you know if an RRIF withdrawal payment has to be paid to a Canadian bank account, or can it be directed to a foreign bank account (eg Australian) ? My husband recently cashed in his RRIF to his Canadian bank account, and now he isn't allowed to do transfer of the funds to his Australian bank account. He was told by the Canadian bank that this is because he lives outside of Canada ( in Australia). They told him that he could withdraw the funds using his Canadian bank ATM card but then there are minimum withdrawal allowed using ATM cards & also Withdrawal fees involved. This seems to be sort of a grey area when you talk to the bank people. I have heard that the Canadian Government can deposit CPP & OAS payments to an Australian bank account, so why can't the banks? Any insight & direction would be appreciated. Thanks.

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      Never heard of this. I would escalate this with your bank.

  • @SeanONeill13
    @SeanONeill13 3 роки тому +1

    Withholding tax true’s up when you file. As well, stating that you are in for example, a 40% tax bracket is not accurate. There is a marginal rate but that is on a range of income, not total. That has to be made clear.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +2

      Sean, great points. When we say tax rate is 40% we are assuming marginal (we have a whole video coming on this). And we do mention in all our videos that talk about withholding tax that's it's not the final tax you will pay - could be more or less. We will try and make this more clear in future videos.

  • @kiramuddinyaqubi
    @kiramuddinyaqubi 3 роки тому +2

    Great content.
    I have a question and I am very new to this. I heard that income generated such stock investing under RRSP is tax free. Let's say I contributed $20k this year and by next year this amount grows to $30k, how can I withdraw the profits only without paying any tax which is $10k? If I don't understand it wrong. Thanks!

    • @ParallelWealth
      @ParallelWealth  3 роки тому +4

      You can't. It's all taxable

    • @beautyofthailand7393
      @beautyofthailand7393 2 роки тому

      It’s all taxable - say you put $20,000 into your RRSP or SDRSP and then buy stocks that increases in value to $100,000 - when you sell that stock, you will be sent a T5008 and have to pay capital gains even if you don’t take it or you re-invest it
      You will also have to pay withholding tax on all $100,000 if you take it out - happened to me but obviously check with an accountant

    • @beautyofthailand7393
      @beautyofthailand7393 2 роки тому

      I read that there is an tax exception if you invest in the Canadian movie industry stocks.
      If you invest in Tesla or other American stocks, their is a US govt withholding tax of 30% on your dividends - I believe their is a form you can fill out to try and get that back

  • @user-gp1om6np4z
    @user-gp1om6np4z 2 роки тому

    hi, could you please tell what form should i fill up to withdraw rrsp from my cra account to my bank account? thank you

  • @vickyminich771
    @vickyminich771 2 роки тому

    For clarification purposes - RRSP into a RIF for income splitting can only be done at age 65? Converting RRSP to a RIF before age 65 does not give you that same income splitting advantage? Does this also apply to a LIF? Thanks

  • @edisonareis
    @edisonareis 2 роки тому +1

    Great explanation! Just one question, you mentioned that is a bad idea (taxation speaking) to pass leaving money in our RRSP to our beneficiaries as they may have to likely pay up to 50% in taxes. (The 200,000 RRSP example) Can they shelter or keep the full amount if they simply transfer to their own RRSP? (Like we do with employment bonuses) Thanks in advance.

    • @ParallelWealth
      @ParallelWealth  2 роки тому +3

      RRSPs can only be rolled over to spouses and CL partners. So outside of that there will be tax due at death.

    • @WindyTherapy
      @WindyTherapy 2 роки тому +1

      @@ParallelWealth Thank you so much for answering

  • @manjitdhillon4368
    @manjitdhillon4368 2 роки тому +1

    Hi Adam thanks for your videos. Just wondering if the benifishery have to pay taxes after death. I am single have two young adult children. I have a will as well but kind of worried about all this. Please advise.

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      When you die your RRSP will be liquidated and added to income that year if you have no spouse or CL partner

  • @joe-jq9br
    @joe-jq9br Рік тому

    lets get realist about the amount of money most people have in a RRSP
    Why would I leave $500000 in the bank when Im 71 for the CRA to spend

  • @scottthekemsolguy7958
    @scottthekemsolguy7958 3 роки тому +1

    subbed. good info.

  • @JaimeHRod
    @JaimeHRod 3 роки тому +1

    Can we contact you via Parallel? Who would we contact for a quote? Retirement plan? Estate plan?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Yes send us an email and we will get back to you with details. Or visit www.parallelwealth.com/ffs

  • @sammalek5632
    @sammalek5632 3 роки тому +1

    Thanks a lot Adam for the great video. If you had a $1M in RRSP and $1M in a non-registered investment account and no income for the year, would it be better to take money (let’s say for a net income of $50k) from your RRSP or cash some of your investments? Thanks

    • @ParallelWealth
      @ParallelWealth  3 роки тому +2

      Will depend on cap gains in non reg. You could likely do a bit of both and keep your tax bill close to $0. It's likely not one or the other, but a mix of both.

  • @WowRixter
    @WowRixter 2 роки тому +1

    If I sell property after retirement (not principle residence), is the capital gains considered income so therefore whatever I'm drawing from a RRIF is added to that income, or are capital gains treated separately?

    • @ParallelWealth
      @ParallelWealth  2 роки тому +1

      Added to income. Currently a 50% inclusion. So if you make $200k on the sale, just add $100k to your income.

    • @WowRixter
      @WowRixter 2 роки тому

      @@ParallelWealth great, thank you

  • @andrealbs9798
    @andrealbs9798 3 роки тому +1

    If you transfer a small portion of your RRSP to a RIF at 65 in order to avail of the $2000 senior tax credit, can you still put money into your RRSP until you turn 71? In other words, can you withdraw from a RIF and contribute to an RRSP in the same year?

  • @wyakan
    @wyakan 2 роки тому +1

    Hi Adam
    Are we going to lose all future contribution room to RRSP if we ever withdraw any amount? I am at a very low income this year and want to take advantage of that but need to know the impact on future years if I start to work

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      Walter, you don't get back contribution room in a RRSP like you do with the TFSA. You only build more room based on 18% of income. Hope that helps.

  • @clauharrison3937
    @clauharrison3937 3 роки тому

    I would love to get one of the chart showing what percentage in $ amt., to withdraw from the rife the one u show is too small

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Check out this link for a chart: www.woodgundy.cibc.com/en/reference/retirement-planning/rrif-minimum-withdrawal.html

  • @pointnorth2456
    @pointnorth2456 2 роки тому +1

    If someone has good money in RRSP or TFSA. Can this reduce the pension amount like OAS or Supplement? CPP I think is not affected. Thanks

    • @ParallelWealth
      @ParallelWealth  2 роки тому +1

      Well OAS can be clawed back on income. We have a detailed video on this.

    • @pointnorth2456
      @pointnorth2456 2 роки тому

      @@ParallelWealth not clear for me. Is affected or reduce OAS ?

    • @ParallelWealth
      @ParallelWealth  2 роки тому +1

      OAS is reduced when you hit an income level (@$78k) and eliminated once you hit close to $130k. Search and watch the video. Will answer all your questions.

  • @187Rossi
    @187Rossi 3 роки тому

    How do you actually take some out?? What do you have to do to see it in your bank account?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Request it from your financial institution - always a redeem option!

  • @MaximusOpus
    @MaximusOpus Рік тому

    What if i withdraw rrsp for emergency expenses? And not planning to put it back ?

  • @judyvilleneuve9436
    @judyvilleneuve9436 3 роки тому +1

    Is it true that you must wait 3 years after your last RRSP contribution to avoid some penalty? Also when I transfer money to a RRIF does it stay invested the same way, with my stocks, etc? Thank you, new subscriber and semi retired now. ☺️

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      3 year attribution for spousal rrsp. And when you transfer to rrif you can invest the same - just a different name on the account. The investments don't change

  • @joseelevesque5083
    @joseelevesque5083 3 роки тому

    Once you die, notwithstanding the tax implications, can you choose to not have it rolled over to your common law partner, by your will, and leave it to the children, for instance?

  • @dinahowusu-nyarko3841
    @dinahowusu-nyarko3841 3 роки тому +1

    So if you're 60yrs, can you convert all your RRSP to RRIF with no taxes? If so how do you do that

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Yes, just contact your financial institution and they can assist you with this.

  • @mcapkwy
    @mcapkwy 2 роки тому +1

    I’m 68 yo still working, can I use my RRSP to buy a property?

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      First time home buyer? Or have to redeem and lose half to tax

  • @julieguindon4084
    @julieguindon4084 3 роки тому

    How do you remove an overcontribution to your RRSP without paying the 1% tax penalty? What if you overcontributed, but are buying a house in the same year and plan to take money from the RRSP?

    • @normjones6916
      @normjones6916 3 роки тому

      Happened to me, had to pay for a couple of years of over contr

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      You can overcontribute $2k in your lifetime. If you go beyond that in your example then you would be penalized for the months you had too much in the RRSP.

  • @RonaldH
    @RonaldH 3 роки тому

    About the income splitting. Income splitting of pension/RRIF can only be done after age 65, right?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Correct.

    • @RonaldH
      @RonaldH 3 роки тому +1

      ​@@ParallelWealth Thanks. Also, I found your video was very informative. I didn't realize that RRSP withdrawals after age 65 cannot be split with my spouse. So I'll definitely move things into a RRIF when I turn 65. I just need to a bank/broker who allows RRIF withdrawals over the minimum without charging fees. I checked with Questrade and was surprised that they have a $50 deregistration fee on both RRSP and RRIF partial withdrawals.

  • @MrSteeJans
    @MrSteeJans 2 роки тому +1

    Hi Adam, I just wanted to double check that I heard you correctly - if you withdraw money from an RRSP for the purpose of buying a house, then you will not be taxed on it. So, it will not be added to your total income for taxation purposes ?
    If this is true, does it also apply to building a new home ?
    This sounds like the ideal alternative to RRSP melting.
    If you could confirm or clarify that would be awesome!
    We are about to build a new house. We are planning to use my RRSP to pay off the mortgage in our retirement, assuming I am making zero income. It's hoe we plan to 'melt' the RRSP before opening the tap on CPP and OAS.

    • @ParallelWealth
      @ParallelWealth  2 роки тому

      If you qualify for the first time home buyer plan then yes. Check the qualifications.

    • @MrSteeJans
      @MrSteeJans 2 роки тому

      @@ParallelWealth thanks for the quick response. Unfortunately we don’t qualify as 1st time buyers.
      I am interested in your financial advice service for our retirement plan. I really enjoy the information you have been publishing in your videos.
      I’m not sure which option best applies: the one for my individual plan vs. for both my wife and I.
      Our situation in a nutshell:
      - we are close to retirement
      - we are about to build a new home
      - my wife has a full nursing pension (HOOP) that will pay for our living expenses
      - my RRSP will ultimately pay for the mortgage on the new home.
      - I plan to work until I am 65 to reduce the mortgage before putting the RRSP (indirectly) on auto-pilot to pay for the mortgage.
      So my wife’s income relevance is somewhat isolated. My financial planning needs seem to revolve mainly around decisions that are only relevant to my RRSP vs. CPP & OAS.
      Which service is most relevant ?

  • @ceed.r.3446
    @ceed.r.3446 3 роки тому +1

    Can you withdraw out of a locked RRSP through a work retirement plan? I believe mine is locked, and it kinda sucks.

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      So many restriction on locked in RRSP accounts. Unlocking provisions differ per province. Ask your financial advisor for assistance with this.

    • @ceed.r.3446
      @ceed.r.3446 3 роки тому +1

      @@ParallelWealth thank you

  • @husnashaukat535
    @husnashaukat535 3 роки тому +1

    Is it a reliable choice to take money out of my RRSP if i wanna buy my place?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      For the majority of Canadians it is. The downside for some is that as they pay back the HBP they are in a higher tax bracket and don't get the tax break. But overall I would say it's well worth it. I did it myself.

  • @micheles7503
    @micheles7503 3 роки тому +1

    Now i can convert my RRSP to RIF,then how long can i cash out without paying tax ?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Any money taken from your RRSP or RRIF is taxable income - so amount of tax will depend on your overall tax rate (marginal tax rate)

    • @micheles7503
      @micheles7503 3 роки тому

      @@ParallelWealth Thanks.

  • @gerardvinet8448
    @gerardvinet8448 3 роки тому +2

    Can U return a portion of a RIFF back in a RRSP ????

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      As long as you are under 71

    • @gerardvinet8448
      @gerardvinet8448 3 роки тому

      @@ParallelWealth Thanx for the info , bud .Cash out 2000$ a month , but can get through with 1000$ , I was wondering why I was paying 540$ A month on taxes , so I was paying 30 % ???

  • @DungNguyen-pg4tk
    @DungNguyen-pg4tk 3 роки тому +1

    Can I pull $ out from RRSP to buy a second house?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      As taxable income - likely wouldn't make sense unless you have no other income.

  • @gordonskillen5924
    @gordonskillen5924 Рік тому

    How do I go about hiring you for the fee for service that you mentioned

    • @ParallelWealth
      @ParallelWealth  Рік тому

      Gordon, You can learn more and make the next step at www.parallelwealth.com/planning

  • @clauharrison3937
    @clauharrison3937 3 роки тому +1

    What if I don't have a spouse

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      Clau, you won't be able to income split RRIF payments and the min amount will be based off your age if you don't have a spouse or common law partner. When looking at maximizing your RRSP withdrawals the strategy is still very much the same - looking at both short and long term needs, tax brackets and longevity. Thanks for tuning in 👍

    • @rickpacan4497
      @rickpacan4497 3 роки тому

      @@ParallelWealth what is you are separated but not divorced? Can you technically income split?

  • @malenamonge8849
    @malenamonge8849 3 роки тому +1

    What is the minimum age to pass the RRSP TO RRIF?

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      55

    • @horatiu70
      @horatiu70 3 роки тому +1

      At any age, there is no minimum. The only age limitation applies to LIRA/LRSP conversion to LIF. That one has the 55 age rule.

  • @tristanblackwood1917
    @tristanblackwood1917 3 роки тому +1

    What are your thoughts on RRSP/RRIF meltdowns

    • @ParallelWealth
      @ParallelWealth  3 роки тому +1

      We usually recommend this, while delaying your CPP. Works for most scenarios to create the max income.

    • @tristanblackwood1917
      @tristanblackwood1917 3 роки тому +2

      @@ParallelWealth Thanks. I thought as much. As an advisor, I have to say your content is objective, concise and well-delivered.

    • @ParallelWealth
      @ParallelWealth  3 роки тому

      @@tristanblackwood1917 many thanks!

  • @caperboy1169
    @caperboy1169 Рік тому

    All this is doing is scaring me .

    • @ParallelWealth
      @ParallelWealth  Рік тому

      Why is that?

    • @caperboy1169
      @caperboy1169 Рік тому

      @@ParallelWealth it’s very intimidating. I’m planning on retiring solo next fall and there’s so much to know