Thanks for the info. I saw a YT video recently about why you SHOULD take CPP at age 60 rather than waiting until 70 (depending on your situation). Why? The breakeven age is 86 for CPP. So if you opt to take CPP at 60, you will be 86 before you start losing money because of the lower rate of payment. The average lifespan for Canadian women is 83.9 and 79.5 for men. Sure, you could live longer than 86. However, you have the 26 years (from 60 to 86) to invest part of that money (precious metals did over 30% in 2024) while you enjoy using the balance. At least this is what I got out of the video.
For lots of us subscribers who have been watching your content over the years this is a GREAT summary of key points to explore contemplate and ponder over as one goes into retirement. Thank you Adam for this end of year Gift. Wishing your team and family Merry Christmas and Happy Holidays.
It would be great to see a video where the sale of a secondary property is sold with a significant capital gain and the implications of doing so at various times. What are the strategies to reduce taxes or prevent an OAS clawback?
I’d like to know more about earning money after retirement. How do I work at least part time without losing the whole income to taxes and/or losing my OAS, CPP…?
There is no case where you would lose your whole income to taxation. It's not too difficult to get into 29% taxation on work income when you have a pension. Still, you get to keep the 70%-ish. OAS could get clawed back a bit at around 90k income. Earned CPP is yours to keep, but working low income years before starting CPP may ("may") affect the later payout a little bit.
Another informative video. Thanks and Merry Christmas to you and yours. I'd like to suggest a video idea I hope to see in the new year. Cheers 1. Detailed Cash Wedge video - cash wedge options to avoid market downturns and then withdrawal strategies from that wedge. i.e. 2-3 year cash wedge needing $24000 a year but withdraw $2000 a month. Biggest question I have from this is if have a $24000 bond, GIC, etc that matures do you just leave that redemption in cash in RIF or are there better options.
28 percent from GIS? A bit scary 😨. I am going to ask CRA to withhold taxes. Merry Christmas 🎅 Parallel Wealth. You are all great! Frohe Weinachten. Your plan you made for me has allowed me to live a good life. 👍
@nickyfurlano8531 I'm not fold of a large tax bill at the end of the year. If I've overpaid I'd rather get tge refund. It's not like it's going to make much difference in interest
I’d love to see a retirement video about people that aren’t 70. Some of us retired at 45 and don’t have pensions and at RRIF stage etc. I just want to know how to reduce my taxes withdrawing from a RRSP, TFSA non reg.
@@Wds__99 I don’t understand the hate for your question. It is almost like early retirement is beyond the comprehension of many people. That is sad. My personal plan is to delay CPP and OAS to 70, and to avoid OAS claw back, I will be melting down my rrsp by age 69. I will be managing my tfsa contributions and use of taxable accounts by managing my tax bracket. I expect to be in the second tax bracket in retirement, so will pull more from my rrsp (or non-registered/taxable) and fund my TFSA for the year, as long as I have room in that tax bracket. For my spending income, I will have turned off the DRIP on my non-registered ETFs, this is my first source of income, second will be to withdraw from RRSP (typically balance divided by remaining years to age 69), if that doesn’t take me up to annual income plan, next is to take from non-registered. After that, I look at my tax bracket room, and either move investments from my rrsp or non-registered to make my annual TFSA contribution. By the time I hit 70, I will just be topping up my CPP and OAS with non-registered capital gains, and tfsa, so should be able to avoid OAS clawback. I recommend the books Retirement Income for Life, and Die with Zero.
Great talk, some of your soon to be retired folks may actually qualify for some additional RRSP room retiring allowance contribution for those working between 1986 -1995 $2k per year
I have never heard about taking a minimum out of RRIF at 65 yrs. I am past 65 and I’ve never taken out any money from RRIF. My bank told me in the year I turn 71 that is when I will draw down money from the RRIF, and they will do the withdrawing for me. So what you’re saying is puzzling unless I am missing something, I don’t understand.
The bank exists, in the worst case to maximize their own profits, in the best case to maximize your product line that you have purchased. A "fee for service" planner would have a third party view with an interest to maximize your entire plan (including taxation).
I think if you convert to a RRIF then you have to take the minimum. For example you convert at 55 then you have to take the minimum. You don’t have to convert until 71 though.
With careful planning, it is unnecessary to request tax withholding. Remember than if you retain income rather than CRA retaining it on your behalf, those funds can work for you. Only those who are careless will not retain enough to pay tax owing.
Thankyou....Great video....I totally agree.. not everyone is a great fit, but although I will go this year on my own (and we have done alright)....I relise that I am over my head and need help to achieve a better performance.....however....I myself are not the easiest personality to work with....but I do relise there is a better way.... Great job, you are really helping people.....xoxo
You will pay income tax in the highest bracket on every dollar of voluntary withheld taxes that you did not need. It will affect old age amounts, GIS and OAS clawback. I use my tax software to estimate how much taxes I will have to pay. In my case it's less than the withheld taxes. I get a refund. If I would owe, I would just wait til March of the following year to pay the extra income tax needed. I guess if you let someone else do your income tax all those years, it would be natural to find someone to figure what to do in retirement.
GDP per capita in Canada has dropped significantly. Currently ranked 22 in the world. Canada is no longer a wealthy nation. There is surprisingly high levels of senior poverty in Canada.
Covering RRSP to riff - I live in Ontario. I retired 8 months ago. I went t 2 banks and was told I cannot convert to a riff until the year I am turning 71?
Go somewhere else --- you can definitely convert a RRSP to RRIF before age 71. In fact, my wife converted her RRSP to RRIF at 59. You don't really get lots of advantages doing the conversion at that age though as the income isn't able to be split until age 65. However if during the accumulation phased you planned for level income based on probable income sources you can easily level income with the right investments in the right persons name much earlier than 65.
If I am going to get taxed on the minimum, what is the benefit of converting to a RRIF in the first place? If I take $15000 from my RRSP, they will withhold $300 and I wont get a surprise tax bill at the end of the year.
There are 2 other possible benefits to convert some of your RRSP to RRIF before 71. First, if you are 65, it may allow you to use the $2000 pension income amount for a tax credit, and second, Institutions often charge fees for RRSP withdrawals.
Fantastic information. 5 years out from retirement. Having saved and invested for years it’s definitely time to get a retirement specialist. Thank you Adam.
Two things ALL of you should know. If you can and especially if you can afford to, wait until your 70 before you start collecting your CCP & OAS and you can also pay into your CCP until your 70, but not after. As well, you can throw out the lowest 7-yrs. I think it is of your earning years. Once you turn 70 you will start collecting both your CCP & OAS. The advantage of wait is that you'll get 36% more by the time you turn 70 on your OAS and 42% more on your CCP, which can quickly add up and will surely help whether your well off, or poor like myself. Next, especially if you are well off take your money and run. Western Governments have proven beyond the shadow of a doubt that they will p*ss your tax dollars away like nobody else can. So, if you can afford to get out of, primarily the 5 Eye's Nations then run baby run. Because they're all broke and the tax regime will only become more oppressive with time. But stay away from the 5-Eye Nations since they're all in the same boat and are simply screwing their citizens. The End. Good-Luck and Good-Bye. Amen. Shalom. AD. The Teacher.
We left Canada for Philippines, and are considered Residents for Tax Purposes. Can we take our RRIF withdrawal and place it into the TFSA assuming sufficient room in the TFSA? Are there any restrictions?
You'll need to look at your original start date to determine if you can stop benefits (and repay what you have received) once you are in receipt of OAS &/or CPP. Once you've started, you currently have the following windows: OAS = 6 months; CPP = 1 year.
@@nicklanfear4303you see it as an adjustment to your cost base. It can suck if you aren’t keeping an eye on it though. What I do is turned off my DRIP on my non-registered accounts and save the amount required for taxes on the dividends and any capital gains realizations.
WHY RSP's?? Just adds to your income, which means higher TAXES..TAX goes higher every year.....PUT YOU MONEY IN INVESTMENTS CERTIFICATES....tax IS PAID ON THAT MONEY at source ONLY....I wish i had never bought rsp's!!!!!!!
The best way to save on taxes to the corporation called CANADA is to not give it taxes period. The tax laws of CANADA have never been put in force as it would need royal assent, which is impossible as Canada has had zero monarchy influence since 1901. This is when the BNA acts (another corporation) owner, Queen Victoria died and along with it her company. Since 1901 CANADA, a USA registered corporation, has masqueraded as the ‘government’. It is in fact a ‘de facto’ government meaning acting as a government. Canada’s men and women to have a true government must elect a body politique which is a true government that is only accountable to its men and women and not to any company/corporation. Canada revenue is also a corporation, each provinces government are corporations. BC’s government for example is a registered corporation in China (you can fact check this). Therefor why would any Canadian pay ‘tax’ to a corporation they never voted in? To put this into perspective would you pay the McDonalds corporation if they sent you a tax bill? McDonalds and CANADA are both corporations, more over CANADA is a foreign registered company which is only fiscally responsible to its shareholders, and that is not the men and women of Canada. Interestingly enough CANADA and the CRA will allude to tax laws but will never provide any proof these laws have ever been in force. What they have are pieces of paper with details on how they can tax but these papers are just proposals, neither legal nor lawful. To add to this CANADA does not have a Constitution nor a charter of rights or freedoms (note charter is only used for businesses) as these would need royal assent Including Quebecs approval. This has never happened but the CANADA corp leads us to believe it is true. All of the above is publicly available knowledge and most of it on the ‘governments’ own websites and archives. I implore you to do your own research to decide for yourself if you want to pay taxes to a ‘de facto’ entity.
Merry Christmas Adam, thanks for all the great video's!
Same to you!
Thanks for all your hard work this year in educating us. I hope you know we appreciate it.
Thanks Garth, appreciate that. It's been a great year and we have heard lots of great stories and look forward to what 2025 has for our team.
Best of the season to you and your staff. I have told a number of people about your site and hope they watch and can learn.
Thanks and Merry Christmas to you and yours as well.
Great video Adam, your delivery in front of a camera is flawless, Merry Christmas.
Thanks, much appreciated. Merry Christmas
Thanks for the info. I saw a YT video recently about why you SHOULD take CPP at age 60 rather than waiting until 70 (depending on your situation). Why? The breakeven age is 86 for CPP. So if you opt to take CPP at 60, you will be 86 before you start losing money because of the lower rate of payment. The average lifespan for Canadian women is 83.9 and 79.5 for men. Sure, you could live longer than 86. However, you have the 26 years (from 60 to 86) to invest part of that money (precious metals did over 30% in 2024) while you enjoy using the balance. At least this is what I got out of the video.
For lots of us subscribers who have been watching your content over the years this is a GREAT summary of key points to explore contemplate and ponder over as one goes into retirement. Thank you Adam for this end of year Gift. Wishing your team and family Merry Christmas and Happy Holidays.
Much appreciated!
Great summary Adam. A lot of information in the segment. Much appreciated.
Glad you enjoyed it!
It would be great to see a video where the sale of a secondary property is sold with a significant capital gain and the implications of doing so at various times. What are the strategies to reduce taxes or prevent an OAS clawback?
Will get a video together around this
@@ParallelWealth I have 2 rental properties and 5 years away from retirement. a video on selling rental properties would be greatly appreciated.
Great video. This really helped.
Glad to hear it!
Adam, Merry Christmas and Happy New Year 2025. Great video as usual.
Thanks so much and Merry Christmas to you as well
I’d like to know more about earning money after retirement. How do I work at least part time without losing the whole income to taxes and/or losing my OAS, CPP…?
There is no case where you would lose your whole income to taxation. It's not too difficult to get into 29% taxation on work income when you have a pension. Still, you get to keep the 70%-ish. OAS could get clawed back a bit at around 90k income. Earned CPP is yours to keep, but working low income years before starting CPP may ("may") affect the later payout a little bit.
Another informative video. Thanks and Merry Christmas to you and yours.
I'd like to suggest a video idea I hope to see in the new year. Cheers
1. Detailed Cash Wedge video - cash wedge options to avoid market downturns and then withdrawal strategies from that wedge. i.e. 2-3 year cash wedge needing $24000 a year but withdraw $2000 a month. Biggest question I have from this is if have a $24000 bond, GIC, etc that matures do you just leave that redemption in cash in RIF or are there better options.
Thanks, and we have this exact video coming mid January
28 percent from GIS? A bit scary 😨. I am going to ask CRA to withhold taxes. Merry Christmas 🎅 Parallel Wealth. You are all great! Frohe Weinachten. Your plan you made for me has allowed me to live a good life. 👍
Never have taxes withheld you get the use of Revenue Canada's money for an extra 3 months before you pay your next income tax installment payment.
@nickyfurlano8531 I'm not fold of a large tax bill at the end of the year. If I've overpaid I'd rather get tge refund. It's not like it's going to make much difference in interest
Thanks for another great video
I’d love to see a retirement video about people that aren’t 70. Some of us retired at 45 and don’t have pensions and at RRIF stage etc. I just want to know how to reduce my taxes withdrawing from a RRSP, TFSA non reg.
How can you retire at 45 with no pension, retirement investments, equity or cash? Seems like retiring at 45 is way too young.
@@perryg5500they have RRSP’s, TFSA,s and non-registered investments. Likely earned through employment and possibly inheritance.
When you are 59 year old then ask for that advice . Your question does not make sense now .
@@Wds__99 I don’t understand the hate for your question. It is almost like early retirement is beyond the comprehension of many people. That is sad. My personal plan is to delay CPP and OAS to 70, and to avoid OAS claw back, I will be melting down my rrsp by age 69. I will be managing my tfsa contributions and use of taxable accounts by managing my tax bracket. I expect to be in the second tax bracket in retirement, so will pull more from my rrsp (or non-registered/taxable) and fund my TFSA for the year, as long as I have room in that tax bracket. For my spending income, I will have turned off the DRIP on my non-registered ETFs, this is my first source of income, second will be to withdraw from RRSP (typically balance divided by remaining years to age 69), if that doesn’t take me up to annual income plan, next is to take from non-registered. After that, I look at my tax bracket room, and either move investments from my rrsp or non-registered to make my annual TFSA contribution. By the time I hit 70, I will just be topping up my CPP and OAS with non-registered capital gains, and tfsa, so should be able to avoid OAS clawback. I recommend the books Retirement Income for Life, and Die with Zero.
@@vijayvarade8077why doesn’t it make sense now? OP retired at 45. Good for them. Although they should’ve asked before retiring.
Great talk, some of your soon to be retired folks may actually qualify for some additional RRSP room retiring allowance contribution for those working between 1986 -1995 $2k per year
I have never heard about taking a minimum out of RRIF at 65 yrs. I am past 65 and I’ve never taken out any money from RRIF. My bank told me in the year I turn 71 that is when I will draw down money from the RRIF, and they will do the withdrawing for me. So what you’re saying is puzzling unless I am missing something, I don’t understand.
The bank exists, in the worst case to maximize their own profits, in the best case to maximize your product line that you have purchased. A "fee for service" planner would have a third party view with an interest to maximize your entire plan (including taxation).
I think if you convert to a RRIF then you have to take the minimum. For example you convert at 55 then you have to take the minimum. You don’t have to convert until 71 though.
Merry Christmas.
Same to you!
With careful planning, it is unnecessary to request tax withholding. Remember than if you retain income rather than CRA retaining it on your behalf, those funds can work for you. Only those who are careless will not retain enough to pay tax owing.
True but CRA will put you in instalments anyway if you owe a lot at tax time.
How much tax to be withheld from CPP
Question; how complicated is it to pay taxes by instalments, if the outstanding tax is over $3,000?
Not hard or complicated, but many find it annoying
Thankyou....Great video....I totally agree.. not everyone is a great fit, but although I will go this year on my own (and we have done alright)....I relise that I am over my head and need help to achieve a better performance.....however....I myself are not the easiest personality to work with....but I do relise there is a better way....
Great job, you are really helping people.....xoxo
Why does the government calculate the OAS clawback amount based on the grossed up value of my dividends?
Adam, another great video with good advice. What do you think of the cash wedge as a retirement financial tool? 1 year or 2 years of income?
I like 3 personally. Doing a video in a few weeks on this
@@ParallelWealth thanks, I will look for it. I locked in 2 years of wedge at the start of December. My wife agrees with you!
You will pay income tax in the highest bracket on every dollar of voluntary withheld taxes that you did not need. It will affect old age amounts, GIS and OAS clawback.
I use my tax software to estimate how much taxes I will have to pay. In my case it's less than the withheld taxes. I get a refund. If I would owe, I would just wait til March of the following year to pay the extra income tax needed.
I guess if you let someone else do your income tax all those years, it would be natural to find someone to figure what to do in retirement.
Do we get taxed on usd savings account in Canada converted to Canadian funds?
Interest earned from the savings account is taxable.
Merry Christmas and all the best to you for 2025, Adam.
Thanks! And Merry Christmas to you and yours as well.
Shocking that a third collect GIS
GDP per capita in Canada has dropped significantly. Currently ranked 22 in the world. Canada is no longer a wealthy nation. There is surprisingly high levels of senior poverty in Canada.
And a lot of family reunification elders who have NO Cpp because they never worked here.
@@nicklanfear4303 No OAS because they havent lived here long enough (at 10yrs I think you get 10% of OAS ?)
You need 40y after 18 for max amount. 10y should qualify you for 25%
@@davecarpenter4917 and also income below 21k
Covering RRSP to riff - I live in Ontario. I retired 8 months ago. I went t 2 banks and was told I cannot convert to a riff until the year I am turning 71?
You can convert now if you want.. never deal with banks
Go somewhere else --- you can definitely convert a RRSP to RRIF before age 71. In fact, my wife converted her RRSP to RRIF at 59. You don't really get lots of advantages doing the conversion at that age though as the income isn't able to be split until age 65. However if during the accumulation phased you planned for level income based on probable income sources you can easily level income with the right investments in the right persons name much earlier than 65.
Time to move from the bank....
Where do I find a Schedule of the RRIF minimum withdrawal percentages for all ages? Are the minimum rates the same for RLIF?
If you search google for RIF minimums you should be able to find the schedule.
Google.
Question...is there a post disability benefit or pension..for 60+ ??
So many retirement income sources, but which one should you actually withdraw from first? 🤯
It's the biggest benefit...and issue retirees face
If I am going to get taxed on the minimum, what is the benefit of converting to a RRIF in the first place? If I take $15000 from my RRSP, they will withhold $300 and I wont get a surprise tax bill at the end of the year.
At $15000 your withholding tax is 30% . That's $4500 bucks tax not 300. The minimum withdrawal is aged based.
The law. You must do it at 71.
There are 2 other possible benefits to convert some of your RRSP to RRIF before 71. First, if you are 65, it may allow you to use the $2000 pension income amount for a tax credit, and second, Institutions often charge fees for RRSP withdrawals.
@@garth217$5001-$15000 is 20%. $15001 and above is 30%. $1 makes a difference
@@johnvink-f9nI have a DB pension so no issues with the $2000 tax benefit.
Fantastic information. 5 years out from retirement. Having saved and invested for years it’s definitely time to get a retirement specialist. Thank you Adam.
Glad it was helpful!
Two things ALL of you should know. If you can and especially if you can afford to, wait until your 70 before you start collecting your CCP & OAS and you can also pay into your CCP until your 70, but not after. As well, you can throw out the lowest 7-yrs. I think it is of your earning years. Once you turn 70 you will start collecting both your CCP & OAS. The advantage of wait is that you'll get 36% more by the time you turn 70 on your OAS and 42% more on your CCP, which can quickly add up and will surely help whether your well off, or poor like myself.
Next, especially if you are well off take your money and run. Western Governments have proven beyond the shadow of a doubt that they will p*ss your tax dollars away like nobody else can. So, if you can afford to get out of, primarily the 5 Eye's Nations then run baby run. Because they're all broke and the tax regime will only become more oppressive with time. But stay away from the 5-Eye Nations since they're all in the same boat and are simply screwing their citizens. The End.
Good-Luck and Good-Bye. Amen. Shalom. AD. The Teacher.
We left Canada for Philippines, and are considered Residents for Tax Purposes. Can we take our RRIF withdrawal and place it into the TFSA assuming sufficient room in the TFSA? Are there any restrictions?
Not sure, but don’t forget you will not accumulate any new TFSA room while living outside Canada.
With the Bank of Canada cutting interest rates I'm less likely to bust on my OAS in 2025 like I did this year.
Hey Adam, I'm 66 still working and making more than 100k , should I stop OAS and how I do it?
You'll need to look at your original start date to determine if you can stop benefits (and repay what you have received) once you are in receipt of OAS &/or CPP. Once you've started, you currently have the following windows:
OAS = 6 months;
CPP = 1 year.
I got a million dollar union pension..that's it nothing else.
No CPP , not even OAS ? A million aint what it used to be..
That’s more than enough! I have no pension and only $400k.
There should be some tax breaks for singles
Agreed
Aren’t capital gains only taxed at withdrawal, not if they are left in the non registered account?
In a non reg account they are triggered when the asset is sold, not when redeemed.
Thar's right if there
s a gain
But mutual funds can spin capital gains your way at anytime. Happens to me every yr. And i never see that money.
@@nicklanfear4303you see it as an adjustment to your cost base. It can suck if you aren’t keeping an eye on it though. What I do is turned off my DRIP on my non-registered accounts and save the amount required for taxes on the dividends and any capital gains realizations.
You're hired.
WHY RSP's?? Just adds to your income, which means higher TAXES..TAX goes higher every year.....PUT YOU MONEY IN INVESTMENTS CERTIFICATES....tax IS PAID ON THAT MONEY at source ONLY....I wish i had never bought rsp's!!!!!!!
For most if us, the tax saved when we contribute to our RSP is much greater than the tax we pay when taking the income later in life.
Income tax is illegal check out common law
Want to save 60 percent on taxes become an American 😊
crazy question, do you worry about cpp and oas if Trump does what he is threatening with Canada?
I don't ever worry about them, just the timing when to take them.
The best way to save on taxes to the corporation called CANADA is to not give it taxes period. The tax laws of CANADA have never been put in force as it would need royal assent, which is impossible as Canada has had zero monarchy influence since 1901. This is when the BNA acts (another corporation) owner, Queen Victoria died and along with it her company.
Since 1901 CANADA, a USA registered corporation, has masqueraded as the ‘government’. It is in fact a ‘de facto’ government meaning acting as a government. Canada’s men and women to have a true government must elect a body politique which is a true government that is only accountable to its men and women and not to any company/corporation.
Canada revenue is also a corporation, each provinces government are corporations. BC’s government for example is a registered corporation in China (you can fact check this).
Therefor why would any Canadian pay ‘tax’ to a corporation they never voted in? To put this into perspective would you pay the McDonalds corporation if they sent you a tax bill?
McDonalds and CANADA are both corporations, more over CANADA is a foreign registered company which is only fiscally responsible to its shareholders, and that is not the men and women of Canada. Interestingly enough CANADA and the CRA will allude to tax laws but will never provide any proof these laws have ever been in force. What they have are pieces of paper with details on how they can tax but these papers are just proposals, neither legal nor lawful.
To add to this CANADA does not have a Constitution nor a charter of rights or freedoms (note charter is only used for businesses) as these would need royal assent Including Quebecs approval. This has never happened but the CANADA corp leads us to believe it is true.
All of the above is publicly available knowledge and most of it on the ‘governments’ own websites and archives. I implore you to do your own research to decide for yourself if you want to pay taxes to a ‘de facto’ entity.