Great content! Thank you so much. I have a question about RRSP meltdown. It seems to me that this strategy has the effect of paying more in taxes each year until death, where not melting down has the impact of less taxes each year, then a large tax bill on your estate. So you are up-fronting your tax bill. Is this strategy optimized on a net-present value of taxes paid, or just the sum total of tax dollars paid? There would be many cases where it would be a better financial decision to chose to make the large payment at end-of-life as opposed to paying smaller amounts each year leading up to death, if on a present value basis it net saved me money. Thanks again!
why Whole life instead of Universal life ? Is there a difference from a taxation perspective? In that UL will allow payments of larger than required premiums to be made.
Solid RRIF Meltdown plan ✅
Thank you.
You're welcome!
What about if an individual does not have a corporate? Widowed at an early age, raised two kids. No company pension, instead we had RRSP match.
Great content! Thank you so much. I have a question about RRSP meltdown. It seems to me that this strategy has the effect of paying more in taxes each year until death, where not melting down has the impact of less taxes each year, then a large tax bill on your estate. So you are up-fronting your tax bill. Is this strategy optimized on a net-present value of taxes paid, or just the sum total of tax dollars paid? There would be many cases where it would be a better financial decision to chose to make the large payment at end-of-life as opposed to paying smaller amounts each year leading up to death, if on a present value basis it net saved me money. Thanks again!
why Whole life instead of Universal life ? Is there a difference from a taxation perspective? In that UL will allow payments of larger than required premiums to be made.
If melting down the RRSP/RRIF results in OAS clawback, is it still a good idea to do the meltdown?
It was worse starting CPP early. There is no meltdown during the clawback. It is RRSP withdrawals necessary to supply the income needed at the time