Huge RRSP Mistake to AVOID - You will LOSE 40% of Your RRSP

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Title	:	Huge RRSP Mistake to AVOID - You will LOSE 40% of Your RRSP
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The universal principle of insurance is that the insurance company takes in several times the amount of money it pays out On the average, the system is rigged to fleece the customer Do not confuse investment with insurance
Comment from : @donthompson7889

Ok, you have roughly, and very adequately, quantified the amount of growth of the RRIF and the associated tax ramifications at, say age 88 The key, and most important point, is nowhere do you, even attempt, to quantify the cost of Life Insurance I contend that the cost of Life Insurance is massive and in the end probably comes close to the cost of taxes, if you lived to 88 because you will want to start the insurance at, say, age 55
Comment from : @EdfromCanada

3 phases in retirement 1) Go Go years where you are active and spending a lot more money 2) Slow go years likely not spending at the same rate as things tend to slow down 3) No Go years you don't need as much money as an active lifestyle tends to slow much more with less travel not as much entertainment and less outlay of funds Phase 1 - use your TFSAs and keep your 'reportable income low so you pay less tax Phase 2 - You are not requiring as much income so use the excess cash you have to purchase TFSAs from your RRIF withdrawals at whatever excess you have but stay in the lowest reportable income bracket that you can Phase 3 maximize contribution to TFSAs while using RRIF money but managing reportable income to stay in a lower tax bracket The TFSAs should be maximized whereby the amount is not taxed and you can gift to your kids as part of the estate prior to departure and not pay the tax man as much
Comment from : @rg4530

Very well done and informative Wondering if there is another calculator that allows you to get your RRIF to 0 at a predetermined age? For example, start at 71 with $1M and how much monthly it would be to end at age 85? The tax implications can be dealt with otherwise
Comment from : @ryanguthrie4587

All i get from this vid is this dude is trying to sell me life insurance
Comment from : @hotstuff697

What about taking more than 4 every year from RIFF? To make sure little is left?
Comment from : @riverphoenix1379

Interesting information, thank you Just learning first hand about these tax hits in administering my parents’ estate However, the constant references to “Revenue Canada” are distracting It hasn’t been Revenue Canada for about 18 years Why refer to CRA by an old name that hasn’t existed in decades?
Comment from : @elizabethhughes107

Aaron - sincere and sound advice - but - I’ve lived my full life alone - I have no one - and so oddly enough - it’s all about comfort and convenience and enjoyment … / and so it’s more of a spending splurge - from year to year - and so dying broke - could make sense, in my own case / brThanks for looking😅
Comment from : @user-fv6ke8vv2z

Thank you
Comment from : @susanfinkelstein1176

I don't know how it's done in your part of the country but for me, 40 of 535K is not 300K If the guy is not capable of calculating better than that, he should not give advice on anything concerning money!brbrIn the case mentioned, if you don't want a balloon payment at the end, just withdraw more every years and transfer a part of it into your tax free account We have to remember that we have to pay now or pay later, one way or the other, the government is going to get its share
Comment from : @duprog

you should really plan not to have money in your RRSP beyond your retirement As you get closer, you should really start taking money out of your RRSP the closer you get to your retirement to avoid the big tax
Comment from : @kevinmcboyle

Corrupt government Take your RRSP at 60
Comment from : @user-fv9nl6bb8l

I,m 80 years old divorced, my 2 daughters are my beneficiaries, I've About 400K in my RRSp from which I draw the minimum annually how to protect as much as possible for the tax mans claws
Comment from : @gamaltaha6881

Finding a fee for service financial planner is like finding a Unicorn
Comment from : @davehope9144

You lost me with the doom and gloom look on your face Give me a break stop the click bait
Comment from : @psemchuk

You lost me when you put 1 million dollar value in RRIF calcuation That's is very hard to relate to
Comment from : @katiet548

One thing that was missing was the cost of the life insurance First of a 65 year old has to qualify for the insurance If he has any health problems he may not qualify or at an increased cost You are probably looking at $10,000 + for a yearly premium You would have to withdraw at least an extra $15,000 (the extra to cover taxes) from your account By age 88 you have paid $345000 for the life insurance and you have zero left in your account Does this make sense??
Comment from : @theowoytowich9959

If you have a successor named on your RIFF a spouse I thought the plan differed into their names and they now withdraw the funds
Comment from : @Tina-tz2ud

Retirement should not be taxed, it’s theft double taxing your life savings
Comment from : @jackj3542

Sorry but you do not get the the point and the bottom line of what can be done
Comment from : @michaelbrooks7636

Can I put my home in a living trust for my son and grandson?
Comment from : @lizboyer2397

Very informative, thank youbrHave you any thoughts on a life insurance company for a widowed 63 year old woman with a son and grandson living with me?
Comment from : @lizboyer2397

Wow! Insurance companies are masters at extracting maximum amount of fees from customers of these highly complex insurance products They are expensive and the returns to the customer are very poor in reality How about just invest the money that would be spent on the insurance premiums and use that for the taxes or draw down the RRIF quicker as suggested by a few commenters
Comment from : @techmagoo

I invested 16000$ in rrsp this year and want to withdraw it because of family emergency, if I withdraw the sane year i put rrsp, can i get the same dedudtions back next year when I file taxes
Comment from : @RVVlogs1591

"PANAMA RELOCATION TOURS! WITH JACKIE!😊🙋👍❤👈"
Comment from : @joelmadrid2193

Meltdown the RRSP and transfer excess to TFSA
Comment from : @honnorjustice

I can't believe that the full amount of RRSP left after death is added to ones partners yearly salary that's a massive amount of taxes that partner has to pay it's sickening :(
Comment from : @roupenohanian5652

I’m not sure I understand the insurance piece How does it reduce your taxes? Is it a write off? Do you invest most of your money in insurance so your investments are less but insurance is high when you die? Or does the insurance pay the tax bill when you die?
Comment from : @sylvialindgren6676

Stop wearing grey Navy blue is a much more flattering colour for you The video is insightful and practical but I was distracted by the overall greyness An easy fix
Comment from : @daylefloyd6404

Thanks Aaron, why not instead of life insurance meltdown your RRIF faster by increasing your yearly withdrawal amount Life insurance is just another expense in life, its understood that the proceeds would address estate taxes We can't predict when we will pass however if you have a spouse some advance planning can generally address this situation The probability in both parents passing away at the same time are somewhat rare Family history on parents ;life expectancy etc all play a big part in trying to plan to have $0 in your RRIF at death The key as you highlight is understanding your tax bracket and trying to maintain an even loaded lowest tax bracket possible This usually means holding off on collecting CPP and OAS
Comment from : @marcelmed4574

40 of nothing, thats a big blow Oof
Comment from : @buildingscalene

This whole revenue stream exercise is more perverse than the most people do not realizebr1 People do not pay taxthey are taxed br2 This whole paradigm is a perverted system that WE allow to exist br3 Cost of everything is not going up It is the value of those units of wealth is going down br Your money br4 Trueyou do not get to take it with you And if you dowell they can take a nice chunk of it br5 Amazing how many institutions and advisors there are to guide you through thisall of them making a commission as you try to skirt the quagmire of rules and regulations br6 Canadians are complicit in this inhuman tier system We let the 'expert's take care of things br7 Look at what is happening in France No matter how you feel about it , it cannot be denied that there is an example of how to deal with issues that require people to get up and act
Comment from : @chrisbronson5341

So in other words, pay the taxman or pay the insurance companies
Comment from : @kman5768

Can you not put your personal home in a living trust for your children so it just get's transferred over to them when you die?
Comment from : @poocheymama

I don't get it, how does life insurance reduce tax owing? Or are you suggesting to use life insurance to compensate for the tax paid to cra thus having more to gift?
Comment from : @sharvo6

Life insurance is a scam
Comment from : @androopr

CRA employees are all criminals
Comment from : @bobcarlsson4

It’s refreshing to hear someone talk about mutual funds/ RSP who isn’t in the business of selling mutual funds
Comment from : @generalsixty2133

Before you die, after you life long spouse has passed just marry the person to whom you want to leave the money
Comment from : @gc3339

The quantum financial system that’s up and running took a snapshot of everyone’s account everyone will get their money back just so you know
Comment from : @celestemichon1038

Great Thank you We cancelled our life insurance after pay off the mortgage Now we are 62 &63 hope to retire As you say it is worth to have a life insurance but we do not have now What is your advice for that
Comment from : @LANIRAJAMANTHRI

I believe you did not account for inflationbrbrIf you can make 4 on truly conservative investments made today, and with inflation running at over 4, your model breaks down … dramatically! brbrYou will burn through your RRIF way, way more quickly, and the withdrawals will be worth far less than suggestedbrbrYou have to show both sides, people’s retirement money is at stake
Comment from : @SweetHomeAl

Awesome video, just came across your channel and started following So well presented and easy to understand I'll be reaching out and have become a regular followerbrAl
Comment from : @hali7471

Thank you!
Comment from : @BATMAN_1

Financial market is a scam RRSP is a bigger scam A big casino where nothing is made, only bubbles
Comment from : @hongbinwei

Great content, Thank you What is the advantage to converting RRSPs into RIFFs instead of simply withdrawing directly from RRSPs?
Comment from : @chaingroupy

I cash my RRSP at $20 000 per yearobjectif is 0 RRSP at retirement agebrSince 2013 I pay ZERO personal income taxalso I withdraw from the goverment pensionbrAlso I have multiple rental property in Canada and US personnal investment bank and manufacturing facilitysbrbrAll legalwith the magic of corporate structure and family trust
Comment from : @christianduval9067

I developed a RRIF meltdown spreadsheet that includes tax calculations and by increasing the minimums by about +5, the RRIF depletes to near zero in 25 years but taxes only rise slightly, far less than the life insurance premiums one would have paid over the same timeframe
Comment from : @martik778

I believe the first reason to put money in an RRSP is to save for retirement It's right in the name The tax savings is the incentive for people to save
Comment from : @acdatz6222

I think we’re on the same page My plan for my whole life policy (that I got in my 20s) was to leave something to my heirs if I had exhausted all my retirement funds My plan to is to meltdown my RRSP a sizeable chunk before age 71 and put extras into TFSA and non registered accounts During retirement it’s better to gift sums of money than let it all get sorted at death As my mom says, “better to give gifts with a warm hand than a cold one”
Comment from : @wcg66

Whole life, really! What is this 1980
Comment from : @applefrank6882

bgreat video Aaron👍 question are there any taxes on TFSA accounts parents leave to their kids in Ontario/b
Comment from : @Slickpete83

How about transferring part of your RRSP to your child RRSP?
Comment from : @ddtdcd

We need help with our taxes for 2022 Our tax person has been retired
Comment from : @ddtdcd

Hello David With all the news about an up coming market crash/collapse I bailed on almost all of my stocks and mutual funds in my RRSP account The money is still in RRSP's I put about half in daily interest money market fund and the other half I purchased physical silver also in an RRSP account in storage with Brinks I'm 61, self employed and make 65k per year Maybe you can answer this question for me? With all the doom and gloom that I think may be coming I almost want to get that silver in my hand and pay the income tax just so it's in my possession Yes, I'm a conspiracy theorist lol I don't know if this helps but I bought the silver in Feb 22, and it's taken quite a beating these last few months THanks David I had more questions but your videos cleared them up Cheers Pete
Comment from : @peterbeertema6494

Maybe Ive had too much coffee but goddamn, get to the point!
Comment from : @jackmidst8304

Ugh of course it's a whole life insurance guy
Comment from : @James-vj5hz

Appreciate this video and gives a good reason to pause and think Question on RSP tax Looking at the top rate of 53 over $221k Let’s say my income is $300k and I have 30k in RSP contribution space, am I right to assume that contributing the $30k is in reality is not going to impact my taxes for this year anyway but I remain above the $221k level ? If so it seems contributing under this condition for the purposes of reducing taxes does not make any difference ?
Comment from : @RMM09

Great info Aaron but how about utilizing a RRSP Meltdown strategy to mitigate the looming tax burden?
Comment from : @nelacostabianco

Hi David Can you explain the difference between universal life insurance and participating whole life insurance with the aim of reducing taxes Can this strategy apply to universal life insurance Thanks
Comment from : @rosemariel9000

What an eye opener Glad I came across your video
Comment from : @seanmccann2790

Retire earlier, up your RRSP sooner and delay your CPP/AOS
Comment from : @johnnyv5995

Solution Instead of withdrawing $40000 per year…Start with $53000 withdrawal per year That way you are drawing down your rrsp Dying with $535000 in your account is extreme poor money management Use much more of it up and enjoy your life to the fullestbrIf everybody had the mindset of using most of it up instead of worrying about leaving a hefty estate than the tax man wouldn’t winbrJust leave enough to cover funeral expenses
Comment from : @coltukkor