My impression of a RRIF meltdown is to reduce it to a very low balance in order for your estate to pay a lower tax rate and leave more to your beneficiaries. Your examples also assume that you have 20 to 30 years of retirement, a timeline that may not be achievable.
Hi France Johson, The RRIF Meltdown can be useful for multiple purposes. The most common is to provide a retirement cash flow with significantly less tax. It can also save tax on your estate, but that is not the most common purpose. Ed
The smith manoeuvre is single most powerful thing to build wealth with no extra money out of your pocket… yet videos like these should be getting 100s of thousands of views….
Hi Marcelmed, The RRIF Meltdown is about borrowing to invest in order to withdraw from your RRIF and provide a retirement cash flow with signficantly less cash. The Smith Manoeuvre is one good option to borrow to invest, since using your home equity is usually the lowest interest rate. The video is all about the RRIF Meltdown. It only uses the Smith Manoeuvre as one option for the borrowing part. Ed
You're a boss. Gonna get a fully paid off house then max credit line it and full port mstr selling covered calls
Perfect explantion of this process. Keep it for your family instead of giving to the taxman.
Another awesome video from Ed. Thank you so much for posting ❤
My impression of a RRIF meltdown is to reduce it to a very low balance in order for your estate to pay a lower tax rate and leave more to your beneficiaries. Your examples also assume that you have 20 to 30 years of retirement, a timeline that may not be achievable.
Hi France Johson,
The RRIF Meltdown can be useful for multiple purposes. The most common is to provide a retirement cash flow with significantly less tax.
It can also save tax on your estate, but that is not the most common purpose.
Ed
The smith manoeuvre is single most powerful thing to build wealth with no extra money out of your pocket… yet videos like these should be getting 100s of thousands of views….
This video is entirely based on smith manouver, why not just call it that.
Hi Marcelmed,
The RRIF Meltdown is about borrowing to invest in order to withdraw from your RRIF and provide a retirement cash flow with signficantly less cash. The Smith Manoeuvre is one good option to borrow to invest, since using your home equity is usually the lowest interest rate.
The video is all about the RRIF Meltdown. It only uses the Smith Manoeuvre as one option for the borrowing part.
Ed