Discover the Secret of Tax Free RRSP Transfers!

Video quality	The size	Download

Information Discover the Secret of Tax Free RRSP Transfers!

Title	:	Discover the Secret of Tax Free RRSP Transfers!
Lasting	:	8.47
Date of publication	:
Views	:	71 rb

is this strategy still valid in 2023 ?
Comment from : Fernando Rodrigues

Does the 3 payment to RRSP become the next RRIF payment? Does the 15 payment to the TFSA sit in the account stagnant ?
Comment from : Fernando Rodrigues

Can you use this strategy if you don’t own a home?
Comment from : stringbender0

Can you integrate this with an IPP?
Comment from : PFC Developments Ltd

Check out the investment section of our channel at Precedence Capital wwwyoutubecom/channel/UCSf9AIHWdet5HMlWoY_231Q
Comment from : Precedence Private Wealth

Tax cheating, plain and simple
Comment from : stinkfinger630

Great breakdown Is there anything preventing you from doing this if you live outside of the country, and considered a non - resident for tax purposes?
Comment from : Tony Hunter

Great strategies,brDoes it still work right now?brDoes it work in Quebec , I try to find information in french to help me to tell my parents but I cannot find anything brThanks
Comment from : Keven Tremblay

How many of your clients are using this strategy ? What happens if CRA decides it’s tax avoidance and comes after you ? I unfortunately got into GLGI which I’m sure you have heard of … they were licensed by the government and until they decided it was a tax avoidance scam …my point being it was legal until CRA decided wasn’t … all donors had to repay … what is the liability for someone that uses the strategy … how much could they loose ?
Comment from : Just Tunes

None
Comment from : Michele Fisher

What??
Comment from : Michele Fisher

I already have most of my retirement savings in MICs right now including RRSP, TFSA, LIRA, and non-registered Can I leave this arrangement AS IS and just setup the personal mortgage? ie draining the existing RRSP via RIF withdrawals and augment my existing TFSA Lastly can I also leverage my existing non-registered MIC account? All MICs are with same Corp and same Trustee BTW, Computershare has been taken over by Olympia Trust Thanks
Comment from : Ed Shallow

Great video! I read another article about this and 2 questions here:br1 Will the CRA consider the interest paid on the MIC loan fully deductible? as it is almost no risk mortgage with a interest rate of 15?br2 Will this strategy bypass the yearly contribution limit of TFSA? will it be considered advantage therefore subjects to 100 advantage tax?
Comment from : Swag Tim

A few questions: 1) At what age / or how close to retirement is this strategy optimal 2) how long (yrs) are the payments being made to the RRSP/TFSA? 3) what is the optimum ratio between RRSP and TFSA portfolio size for this maneuver ?
Comment from : Shaul Dwosh

Is it possible in Canada
Comment from : SEGARAN PARA

Great video, Brilliant strategy Is there a minimum amortization period for the mortgage?
Comment from : Corey B

Sounds like tax avoidance
Comment from : Dehzi B

Brilliant work coming up with this strategy It is very creative and I like the idea br brbrBut let us pause here for a moment and think br brbr1 All of us want to pay less taxes br2 Government's greed for money is insatiable and they are always finding new ways to extract more money from people, buy votes and advance their political careers br3 Government has the sole authority on violence br brbrIn this backdrop you are suggesting a way to (not prevent them from taking more money from us, but to) stop paying government what they think is theirs And we believe the Government will sit back and listen to our explanations? br brbrFor a moment, think what will happen if everyone who has $250K in RRSP start doing this? I am sure some will fall through the cracks and escape but a majority of them will be squashed by the machinery of the governmentbr br brbrIMO, however clever the strategy is, it is dangerous unless whoever is promoting it signs a waiver that they will incur all costs of litigation and settlement with CRA
Comment from : ஆத்தங்கரை சண்முகம்

Hi, I’m not sure I understand the strategy Do you sell from your RRSP and transfer it to your non registered account to pay back to your TFSA AND RRSP? if not you take money from your RRSP to pay a debt to your RRSP? doesn’t make sense to me… thank you
Comment from : Ray Fortin

It is too good to be true, please read CRA news released on May 13, 2021 Be careful to pay more taxes and get penalty
Comment from : Betsy Day

This not really a transfer from RRSP but rather from RRIF, LIF to TFSA Right? The 3 and 15 in your example are arbitrary numbers How can you justify them when challenged by CRA? What if the 2 numbers are closer, say 5 and 8, is it still worthwhile doing it?brWhat is the minimum amount in the TFSA to make it worthwhile? What is the total cost of setting up the 1st and 2nd mortgages and other fees? Has any of your clients been in trouble with the CRA or audited by the CRA for this strategy?
Comment from : Zhe Jiang

My top and only question is, what is the problem if you pay 50 tax, that is the way systems function This all looks murky and complex strategy that will take away your happiness and time are you not happy with government
Comment from : svenkat2006

Might be great advice? for younger people,but what can people over 65 and under 71 do? and really who do we trust? Everyone talks about kick back, upfront charges , and oh just mortgage your home? Sounds like my pillow case is easier to deal withdespite the risk reward
Comment from : Southern Comfort

Do you have office in calgary? Or anybody in calgary?
Comment from : Francisco Gavino

Hope the folks who listened to you were not penalized by the CRA! Crazy how anybody can recommend or provide advice to the public
Comment from : mackawy

I’m so interested in that strategy, I’m 61 years old now I’m receiving CPP , I need to set and more quest thanks
Comment from : violet acdal

it may be that the strategy is to make it all so complex that no one can understand it ? br brmy poor brain hurts
Comment from : Joel Bouchard

If you have an existing mortgage with a bank but have the cash to pay it out at the end of the term, should one completely discharge the mortgage or transfer the mortgage to the MIC or does it matter?
Comment from : Displaced Czech

This is from the Government of Canada websitebrbr wwwcanadaca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/warning-watch-out-for-tfsa-maximizer-schemeshtml
Comment from : Aaron Ng

Isn’t this illegal according to the cra?brbr wwwcanadaca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/warning-watch-out-for-tfsa-maximizer-schemeshtml
Comment from : D F

The CRA is all over this “strategy” Here are two articles discussing why: brbr financialpostcom/personal-finance/taxes/using-interest-deductions-is-a-reasonable-tax-strategy-but-sometimes-it-can-be-deemed-unreasonable/wcm/511283dc-aded-4823-b80d-4a9990c87ad4/amp/brbr wwwnewswireca/news-releases/tax-tip-warning-watch-out-for-tfsa-maximizer-schemes-806190558html
Comment from : Brock OReilly

Looks like the party is over financialpostcom/personal-finance/taxes/using-interest-deductions-is-a-reasonable-tax-strategy-but-sometimes-it-can-be-deemed-unreasonable/wcm/511283dc-aded-4823-b80d-4a9990c87ad4/amp/brbrThis means everyone who did this in the last few years will be taxed at 100
Comment from : Patrick Julien

Just sent the video to my financial planner and received a long response explaining in detail how this type of scheme is prohibited by CRA since there is no commercial risk in this type of financing Is he wrong?
Comment from : Patrick Courtemanche

Excellent idea, Thanks
Comment from : Rajendra Pandya

How does this work for someone who has already converted their RRSP to RRIF?
Comment from : Wayne Andrews

Omg haha the picture of the bridge at 1:18 is my city! Saskatoon ☺️
Comment from : Nathaniel Baker

How are you withdrawing funds via RIF when the money in the RRSP has already been lent to yourself and invested in non registered?
Comment from : Matt Scott

Do you have to be an accredited investor for this?
Comment from : B H

So when i take money from my rrsp the tax is taken right off the top and i get the remainder it doesn’t matter what I do with the money afterwardsI still pay tax on the withdrawal so i don’t get it
Comment from : Jim Jackson

Hi there! Thank you very much for this video! But i'm wondering, have you ever encountered a scenario where you run out of room in your TFSA?
Comment from : G CA

4
Comment from : Adriana Bidegain

Well what happen if you only have RRSP but no TFSA that's wouldn't work am I correct ?
Comment from : S C

At 1:46 you say sell assets to cash Why wouldn’t I continue to hold my equity positions and only sell the amount required to pay the annual RIF? Selling 100 of my RSP to cash is a massive opportunity cost If I have a $2mm rsp and I make 8 on my equity holdings, I just missed out on $160,000 of growth Why wouldn’t I just sell let’s say $50,000 to cash, make the payment out of the RIF and let the rest compound? Why 100 cash
Comment from : Dean

Can you still do this today Feb 2021
Comment from : Garter Ter

15? How can you charge a rate so high if it is a secured loan?Market 2nd mortgage rates are currently 695 and first mortgage rate are 399 (a 3 difference) Only if you expect a extremely high level of default like junk bonds can you charge 15, which is unlikely given that it is a secured loan and property values would need to drop so low that the equity gets wiped out Also, if this is a closed circle where the lender/borrower are the same person, CRA will likely challenge the rates charged as it is not part of the mortgage market and assign it 05 for admin costs only To just arbitrarily assign a super high rate of return of 15 on a special class of shares would definitely put this in CRA's "tax avoidance" radar In the meantime management company walks away with 1 of your investment every year plus other fee even if you lose They make money, either way
Comment from : PNWCoastGuy

I like the concept But why the CMHC? I have no mortgage, and 80 equity is above $500K CMHC charge up to 4 or I can just register with CMHC but not pay the fee? Or I just use 1999 as a down payment to reduce the fee? But even with 1999 down payment, the fee is about $1120000 (28) Or I'm missing something?
Comment from : KanadaiCsaba

you talk about saving over 1 million dollars in taxes, but if I pulled out the entire 500,000 and paid full tax on that amount it would only amount to 250,000, I just don't get it
Comment from : Fredrick Armstrong

I thought you can only loan to non related arms length?
Comment from : ABidForChangeorg

where and how can apply for this special kind of mortgage? any fee? and rrsp turn into rrif, shoule be age of 70?
Comment from : Li Benny

Do you have small time clients? I'm looking for a personal financial advisor I'm just a teacher
Comment from : Outta10 Network

This is a very effective strategy The only caveat, I think, is you have to be an accredited investor
Comment from : Timi Adetona

Sounds like a win win I was not clear in the example how much the non-registered account would have at the beginning of this journey Is it the entire 600k? And could the mortgage proceeds instead be used to purchase a rental property instead Mortgage payments would remain tax deductible Lastly, if I want to apply my LIRA (Ontario) presume I need to wait until I turn 55 age which is the earliest age in which I would be eligible to convert it into a RRIF Great video!!
Comment from : Alan Kim

What do you do if you don't own a house?
Comment from : C SM

Commented on the other video regarding this strategy I'll wait for a response from that before i go into to much detail about this next question Was wondering will this apply to smaller sums of monies in our RRSP's and tfsa's? For example 100k RRSP and 25k tfsa's? Thank you 😊
Comment from : Faron Wong

Great strategy and videos I'm 53, if I have 250k RRSP / 150k TFSA (spouse 20k TFSA) can this strategy work for me?
Comment from : Russty Russ

Thank you for sharing this info! How do you calculate RRSP annual cash flow and TFSA breakeven analysis?
Comment from : Goran

I have RRSP & TFSA with Questrade, can you handle them for this strategy?
Comment from : Jeff Li

I found a great strategy that this would go hand-in-hand with to help maximize cash-flow for retirement, while avoiding any GIS clawbackbrbr edrempelcom/make-your-retirement-comfortable-with-the-8-year-gis-strategy/brbrUpdate - I just noticed that your description says under 11 years to move $500k Is there any way to make the payments larger to speed things up? Having a 2 - 325 yearly fee against the capital for 11 years seems quite a long time
Comment from : Twinworld Game Reviews

It would be good for any of the commenters here that if you wrapped your head around the scheme that you make a 'reply' to your own question and explain away Thanks in Advance, we're somewhat in the same boat here
Comment from : sundo9999

Is the low limit of 250k RRSP and 100k TFSA for individuals or can this applied to combined assets of spouses
Comment from : Mark Poirier

Isn"t there a rule somewhere about the intention to avoid taxes altogether vs the intention to manage one's taxes efficiently? I would think that the first mortgage would be disqualified as a registered investment as soon as the second mortgage was applied, given the non-arm's length circumstances, and the tax consequences brI like all your other videos, by the way Just this one makes me concerned Has this been tested in tax court?
Comment from : John Sergovich

Great strategy and makes sense Are there any minimum age constraints here? I understand you’d deploy a RRIF withdrawal to pay into the MIC Would a 35 year old couple with mortgage paid off (540k home value) and about 200/150 in RRSP/TFSA qualify?
Comment from : Rick Ranay

My wife passed away in 2019 Subsequently I had all her RRSPs transfered to my RRSPaccount Do I have to show the amount transferred to my RRSP Account as income on my 2020 tax return
Comment from : Hershal Christopher Novis

Although I am certainly not planning on dying, what if I were to die half way through the “transfer process “ brbrUsing the example of $500K RRSP and $100K TFSA, approximately how many years does it take to transfer the funds, are the original funds all tied up until it is completely transferred? And if I were to die half way through, would my heirs need to wait until the complete transfer to get their inheritance? brbrAlso the way I understand it, the MIC pays me $600K to install it in an investable asset Any profits I make are taxable income At the end of the MIC transfer, I would be responsible for paying back that $600K loan Am I correct?
Comment from : Michael Dominguez

Thanks for the great presentation It's a nice trick, taking advantage of the difference between 1st and 2nd place rates I have one question At some point, the MIC loan principal should have to be paid and the loan discharged; doesn't that put capital back into the rrsp?
Comment from : Wayne Hiebert

How is the taxable account administered? Who controls it, and the manner in which funds are invested?
Comment from : Mike P

Hi Todd, a couple of questions:br1 It looks like CRA IT-320R3 has been replaced by S3-F10-C1 I don't see any mention of a MIC in S3-F10-C1 Does that change anything?br2 Are the mortgage payments interest only, or blended?
Comment from : QuentinQuark

Interesting presentation A couple of questions come to mind What assets do the MICs hold? A pool of the investors' own properties? What happens if other investors default on their mortgages?brSecond, what is the amount one must invest to make this scheme workable? How much are your fees?
Comment from : David Allsebrook

I do not have mortgage and I do not pay RRSP I think I am done and I will be living up to 100 years on cost of taxpayers:):):)
Comment from : Arron A

Could this strategy be employed partially during first time home buying?
Comment from : Abraham K K

Hi Megan,brThank you for watching our video The strategy itself is something we have specialized in for several years but is not very well known amongst advisors across Canada It does not have an official name or literature per se We work directly with prospective clients to help them identify of the strategy is suitable for them If you would like to see a customized illustration based on your own specific situation please let us know We can be reached at service@precedencewealthcombrThanks again for watching and for reaching out 🙏🏻
Comment from : Todd McLay

Interesting concept! Does this strategy have a name or books written about it? Tried googling but not coming up with much Would like to research more before hiring a professional
Comment from : Megan Evans

What is the potential risk and how much estimated cost involved in percentage?
Comment from : Patrick Tang

For the tax-deductible mortgage payments, does that include the withholding taxes when you withdraw from an RRSP/RRIF?
Comment from : Thomas Tommy Tran

hi could you please explain me more about " special purpose mortgage investment vehicle" and MIC " mortgage investment corporation " also who decides 3 and 15 shares or class A and Class B ????
Comment from : kamal panesar

Completely makes sense except for the part about the MICMics cannot be owned 100 by one person (at most it is 25 I believe?) So are all your clients using one common MIC that we have our respective shares in to make this strategy work? Would love your feed back on this Thank you for the video very well done
Comment from : Adventures on Vancouver Island

Good day,brbrI feel like I may have misunderstood something and would love a clarification If the 600K cash is withdrawn from the registered accounts in order to purchase the shares in the MIC, how could we still make RRIF payments to ourselves? The accounts have no more liquid cash to withdraw brbrThank you
Comment from : Christopher Fiorilli