040 | RRSP To RRIF Conversion: Why Most Retirees Shouldn’t Wait Until 71
Show notes
In episode 40 of Retirement Unpacked, Michael and Mathieu break down why you should consider converting your RRSP to a RRIF prior to age 71, the differences between a RRIF and LIF, if it makes sense to meltdown a large RRSP, considerations before purchasing a life insurance policy, tax implications of passing on wealth, and much more.
Later in the episode, Gord Manzer joins to discuss a real life case study and explain why retirement decisions can’t be made in isolation. Many Canadians look at CPP, OAS, pensions, RRSPs, and TFSAs as separate pieces, but in reality, every decision affects taxes, income, and your overall retirement plan.Chapters
0:00 Intro
0:28 Why convert RRSP before 71
2:52 Differences between a RRIF and LIF
4:41 Can you buy and sell stocks in a TFSA the same year?
5:48 Can investment firms limit how much tax is withheld?
8:49 Consolidating non-reg accounts into a life insurance policy
15:00 Does it make sense to meltdown large RRSP?
20:14 Single and 65: Is there a benefit to start drawing down RRSP?
23:22 If I move money from RRIF to TFSA, is it taxable?
24:12 How do RRIF withdrawals affect OAS clawback?
26:07 How to use a whole life policy for retirement income
28:59 Tax implications of passing on wealth
32:11 Why retirement decisions shouldn't happen in isolation
36:33 Beneficiary vs. successor holder for TFSAs