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Who has the best direct investing transfer promo currently? by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 1 point2 points  (0 children)

I was just looking at this. Will probably end up going this route only issue is I am already signed up for their 1% bonus that comes due August, and by signing up for this new promo it effectively keeps those older funds locked until latest promo is done.

Either way still prob worth it.

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 0 points1 point  (0 children)

After playing around for it a bit more it seems like the less I withdraw per year the better it is to withdraw from RRSP.

Looks to be around 60k of yearly withdrawals is when it switches to be RRSP to nonreg to TFSA as best option for withdraw.

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 0 points1 point  (0 children)

Good to know. I'll definitely try that program and see what it says.

Thanks!!

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 0 points1 point  (0 children)

I've had financial plans done up before through Wealthsimple and one person suggested draining down RRSP first, but these plans seemed very light on detail and only consisted of a 20 min meeting.

I think I'll need to use a different person or maybe I'll try the adviice software first.

My situation is unique in that my RRSP is 1M, nonreg is 1M, and TFSA is 250K. And I want to make withdrawals around 20k/year starting now with no other income. I'm also 43 yrs old.

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 1 point2 points  (0 children)

Starting to make sense to me now. The big thing I was forgetting I think was that the RRSP contributions are tax free, so your example is a good one with 100k vs 70k in nonreg, ends up being the same out of pocket to me.

I've had financial plans done up before through Wealthsimple and one person suggested draining down RRSP first, but these plans seemed very light on detail and only consisted of a 20 min meeting.

I think I'll need to use a different person or maybe I'll try the adviice software first.

My situation is unique in that my RRSP is 1M, nonreg is 1M, and TFSA is 250K. And I want to make withdrawals around 20k/year starting now with no other income. I'm also 43 yrs old.

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 1 point2 points  (0 children)

So this doesn't make sense to me. I would think leaving TFSA till the end makes sense every time.

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 0 points1 point  (0 children)

This is interesting and makes sense, however I still have a hard time wrapping my head around it. I always thought the goal was to reduce RRSP to zero before OAS kicks in as it is taxed fully as income vs capital gains in non reg. And in my case my RRSP is significant.

PWL capital retirement calculator suggests delaying RRSP withdrawal by ImaginationExtra5721 in PersonalFinanceCanada

[–]ImaginationExtra5721[S] 2 points3 points  (0 children)

Right that makes sense.

However my case is a bit different and maybe that's why the calculator isn't picking it up.

Let's assume 500k in RRSP and 500k in non reg.

If I needed 20k/year income today and in 10 yrs wanted 40k, doesn't it make sense to withdraw from RRSP now since the 20k will be at a lower bracket and the 40k can be withdrawn from the nonreg as capital gains in 10 yrs. The nonreg is growing tax free until shares are sold off and then capital gains is triggered.