How much should you withdraw from your RRIF? + MORE Aug 17th

Not sure how to make a retirement plan? Read on…
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How much to take out of your RRSP in your 60s Oct 5th

Many retirees have the bulk of their retirement savings in registered retirement savings plans (RRSPs) or similar tax-deferred registered accounts. RRSPs need to be used to buy an annuity or more commonly converted to a registered retirement income fund (RRIF) by Dec. 31 of the year someone turns 71.... More »

“Which reverse mortgage is right for me?” + MORE Sep 14th

When Vancouver condo owners Maggie and Rob found out they were on the hook for $400,000 in improvement costs to their building and unit as required by an assessment from their Strata Council, they weren’t sure what to do. (We’ve changed their names and some details to protect their privacy.) .... More »
 retirement savings

In Your Corner: My house is my retirement plan. Am I doomed? + MORE Aug 24th

Owning a home is a great investment but we all should have other investments socked away for retirement — ideally inside a Registered Retirement Savings Plan (RRSP), says this week’s expert..... More »

Caisse to sell off remaining oil assets by next year - Sep 28th

Caisse to sell off remaining oil assets by next year  CBC.caQuebec pension giant Caisse to exit remaining oil-producing assets, setting up $10-billion green fund  The Globe and MailCaisse de dépôt to exit oil production by end of next year in new climate strategy  Fin.... More »
Q. I am 78 and have $330,000 in my RRIF account. How much should I withdraw each year so it is depleted by age 90? –Sandy

A. If I understand your question, Sandy, it sounds like you want to draw down your registered retirement income fund (RRIF) on a schedule aligned with your life expectancy. A 78-year-old woman has a 50% probability of living to age 92, and for a man, it is age 90.

There are a few considerations. As you likely know, there is a formula to determine the minimum withdrawal from your RRIF account each year. Assuming you turned 78 this year and were 77 at the start of the year, and your account value was $330,000 at the end of 2020, your minimum withdrawal would be 6.17% of the account value, or about $20,361.

If your account is a regular RRIF and not a locked-in RRIF that came from a pension plan transfer, you have no maximum withdrawal limit. You can cash in the whole account in one shot, if you would like, but that withdrawal would be fully taxable. If you die, and have no spouse, your RRIF account is deemed to be fully withdrawn and fully taxable on your final tax return…

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Your RRSP and TFSA are your best allies in building financial securityIf you’re over 18 and working, it’s time to start diverting some money into long-term savings to begin building financial security for your future. Pay the tax now in a TFSA, or pay the tax later in an RRSP. Even better? Contribute to both, Lesley-Anne Scorgie writes

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