I liquidated my RRSP account over four years when I opened my business back in 2004. I lived very comfortably and was able to roll business profits back in to allow for organic growth. Set to retire in a few months with excellent savings and a very profitable business with liquid assets. The only retirement account I have now is a TFSA which is paying almost $500/month in dividends. I tell young folks starting out to focus on a TFSA and only set up an RRSP if you have substantial investable funds after filling the TFSA. Overall you might pay a little more in taxes but it simplifies your retirement and reduces potential clawbacks since TFSA withdrawals are not considered as income.
But TFSA contributions are made with after-tax dollars whereas RRSP money has never been taxed - so should be taxable on withdrawal. And TFSA room is not unlimited. The best plan has a mix of both.
I see someone mentioned filling up the TFSA before putting money into an RRSP. Not the best tactic in my view. Doing some kind of split would be more practical if you have a decent income. I used the RRSP to lower my taxable income, then put the tax return into the TFSA. Between age 60 and 70 I stopped working, started the RRSP meltdown, and left my CPP and OAS out of the equation until age 70. My wife and I income split to avoid paying tax at the end of the year. My RRSP meltdown money was used to make my TFSA contribution with the leftover going into my investment funds. At age 70 my RRSP was at zero, and my CPP and OAS income were 30% and 36% higher respectively. When you make the game rules and play your cards right, your golden years will be filled with gold.😅
Great video. Most Canadians are making a huge mistake in taking only the minimum RRIF withdrawal. I've been taking ~3 X the minimum so as to have our RRIFs closed down by the time we are ~80. It's proper estate planning to NOT leave a huge tax burden to one's heirs. Look at your life expectancy people. I can assure you it won't show a result of 95!
The RRSP meltdown is always in the back of my mind and this video is a great reminder that the Mrs. and I should be starting this. My wife has considerable savings in RRSP's mostly due to me contributing to her spousal RRSP over many years. My wife stopped working 21 years ago when our daughter was born and at 58 I think we had better start melting down her RRSP. I'm still working btw and plan to retire in a couple of years. Upon death we certainly do not want our estates paying that kind of tax. Currently we deal with a guy who is good at what he does but is more of an investor than a planner and claims to be both.
Thanks for your comment and for watching the video. It’s fairly common for us to prepare retirement plans for clients that had advisor relationships who only manage their investments. We can help. Email: Aaronwealthmanagement@gmail.com
Great video, lots of folks don’t think of withdrawing RRSP funds before age 65, Great topic and I did a video on this topic on my channel as well. Cheers Rob
Hi Aaron. Your videos are excellent! You describe things very well. I would like to do an RRSP meltdown. However I have a question I can never find information on. I receive a survivors benefit. Now at age 60 I am considering whether i should apply for CPP. I read that when I apply for ‘my’ CPP I may actually receive less money per month not more. My husband had a generous income. My employment income was very low. I hope you consider doing a video about this type of situation!
Nicely explained. Have you considered doing a video on the Canadian dividend tax credit? Purchasing Canadian dividend stocks in your cash account can nullify other dividend income.
Canadian gov’t really gets you! No inheritance tax supposedly so why isn’t that part of a persons estate, rather than income! We are trying to get our money out of rifs asap!
Recently retired and doing the RRSP meltdown (our only income till we get CPP/OAS @ 65). I have an RRSP and a spousal RRSP and plan to split the withdrawals between them, believing that will be the best way to minimize tax.
@@jmack619 I retired @ 60 and plan to take CPP & OAS at 65. Most advisors seem to promote leaving it as long as you can if you can afford to (and you're in good health/have longevity in your family). By doing this, you maximize the monthly payout. 70 is the max age you can leave till.
@@macker0077 Best wishes! Sounds like you have a plan! I have been using a free tax program called wealth simple, probably leaving some tax dollars that I should be accounting for.
Sorry but your missing the annual $ 300 (15% of $ 2,000) tax credit if you have a small RRIF withdrawal. It makes sense to start a small RRIF before 71. Pension Income tax credit.
Great topic and video, I am not an expert but do my own research and calculations regarding the same subject. What I discovered is the same you have mentioned if someone wants to lower tax while withdrawing rrsp which is to draw down during gap years where you stop working but not ready to collect pension/cpp/oas etc. Once other income started to come in, 1/3 of your withdrawal will go to CRA.
That’s exactly what we are thinking of doing. If we retire at 60 and aren’t drawing from our pensions until we are 65 it seems like the perfect time to withdraw RRSPs in those gap years
Absolutely awesome. I know a lot of research and hard work goes into creating such videos so thank you very much! It seemed like you have somehow spied on me for the last 4 years because the situations you have mentioned in this video (for example: losing job during COVID and not getting any employment after that and still too young to get CPP OR having huge balances in RRSP and not so huge in TFSA and Non-registered accounts etc) ) are exactly what I am finding myself in. Verbatim! Merci beaucoup en core! Loved this video.
Excellent video Aaron - appreciate the 10 minutes of clear info. Similar to Marcelmed, I had a question about a meltdown using a spousal-funded RSP. If the Pension Income Tax credit is affected by retribution rules for RSPs funded within 3 years, can this be avoided by using previously funded RSPs, (ones with no contributions in 3+ years) even if new $ has gone to other spouse-funded RSPs?
This is amazing what ur doing I always wanted to know ow how to withdraw from my RRSP tje government is too much. I want to start to take out my RRSP slowly with out of to paid back too much is a very good subject that ur doing love to have the love to have the number so I could link u up. 🙏🏽🤙
Unless I missed something, this seems like a long winded way to say: withdraw from your RSP during low income years in order to minimize tax. Why wouldn’t you do that? What is the typical method? 🤔
You will be better off to withdraw when you have low or no income prior to age 71, when you Have To Withdraw, they are trying to take away your rrsp advantage, sooooo, I quit my job, living off my rif, debt free, and loving life! At 58 👍
Especially because the taxes in Canada are accelerated based on your totals. Up to 15k tax free.15 to 21k taxed 15%. 21 to 53k taxed 25%. 53 to 106k taxed 30% and goes up from there. Notice the largest increase is exactly where middle income earnings get nailed the most... Wonder why everybody is broke 🤔
Assuming you are just deferring the tax at the same bracket, you still don't have to pay taxes on the gains every year so more money remains invested so there's still that benefit. isn't that correct?
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it:!
Congrats on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas.
@@marinascholz9963 No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Claire Martha Magalhaes to create a long-term investment strategy, and she assisted me in managing my investments while I focused on my job without any concerns.
@@MariaGarcia-gv8hj Thank you for your advice. It's challenging to find a reliable investment advisor, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
@@marinascholz9963 I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online.
Personally, I feel fortunate to be one of the many people who have had the opportunity to work with Claire Martha Magalhaes. Thanks to her advice and expertise, I have been able to provide for myself and lead a fulfilling life. Claire is a highly competent and trustworthy advisor, and I am truly grateful to have her on my side. It is not easy to find someone who is not only knowledgeable but also has the necessary skills to manage investments effectively. I feel indebted to her and will continue to offer my support and prayers.
This is the best video yet. Now I know why I can retire now . I was going to work until 60 but now I think I can retire now using this strategy. Work pension at 62 and CPP at 65 with RRSP still left
Great video and thanks for explaining it so simply. I'm 68 years old and have not withdrew anything from my RRSP. I work with govt and will have a pension for serving for 15 yrs. What would you suggest in terms of withdrawal from RRSP? Leave it until 71 and then withdraw from RRIF as my income will be much less... I e only pension income?
Thanks for watching the video and for your comment. Well, not much time before 71. Normally we could push CPP & OAS to 70 and begin a meltdown but your 2 years away from 70. The plan I would do for you would illustrate deferring CPP & OAS until 70 and examine the difference between converting to RRIF now and doing a RRIF meltdown vs converting at age 71 and then meltdown.
Goal is to minimize tax paid during your life and at death. Well the calculation seems more complex, since you did not consider the tax you need to pay each year on interests from the money you now invest out of your registreted account. So a strategy to withdraw minimum and have your succession pay might not be so bad either. It would be nice to see this simulated into a year to year balance sheet. Thank for the video!.
The more you make the more tax you pay regardless on where the money ends up, your missing the point. The key point is to have $0 in your RRSP upon death. If you meltdown your RRSP and you've moved those funds into TFSA or other non registered investment accounts you could transfer non registered holdings to beneficiaries before death or your executor could do that after death and avoid estate taxes. Your estate tax is purely on the interest those non registered accounts made in the year you passed excluding TFSA . Having any money in your RRSP upon death and your trapped. There is no way out, your paying revenue Canada a big payout.
@@jean-eriksylvain7659 When you retire and you begin melting down you RRIF your goal is to be aware of Canadian tax brackets and maintain the lowest tax bracket possible considering your RRIF withdrawals and other income sources like non registered investments, rental income, capital gains from selling Stocks etc. In almost every scenario you should hold off on collecting your CPP and OAS, both pensions are indexed to inflation and will grow substantially if you wait till your 70 to begin collecting these. The main reason to apply for both CPP and OAS early is if you have a family history for a shortened lifespan OR you need the pension money now to pay for day to day bills etc. If family lifespan is 80+ years then you will come out further ahead by holding off on collecting CPP and OAS till age 70. So yes meltdown that RRIF as evenly as possible with the goal to have $0 upon death. We can't predict when we will pass however if you have early warning signs then its best to request one time higher amount withdrawals in the few preceding years before death.
at 6:48 of this video, you mention that the interest deduction of $9k and the $9k tax would CANCEL EACH OTHER OUT. How? Wouldn't you need the interest to equal the registered withdrawal to offset the tax?
Hi Michael, thanks for your question. An RRSP meltdown serves two simultaneous goals. 1) To lower the balance of your RRSP so as to not leave it behind to be taxed by CRA at your passing and 2) provide the income you require to sustain your lifestyle spending.
Very clear,. i am 66 , my wife is 64 , and our strategy is to melt it down up to my wife reach 86 years old , based on the principle that averagee diting age is 84 and that me and my wife seems to have an average health . Is there a better suited strategy that we could use?
My father in law died in December. With his high pension and large RRIF, the tax bill was huge. We did the math. Had he died in January, it would have saved the estate tens of thousands in income tax, because there would have been very little pension to add to the RRIF collapse. So, the advice is to die in January.
In your other video ("Huge RRSP Mistake to AVOID - You will LOSE 40% of Your RRSP"), you recommended life insurance as a solution to rrsp taxation, but this video recommends meltdown as a solution to the same problem right? So which is better? And you can't do both right, since a meltdown would work against insurance correct?
They're two very different strategies. The RRSP meltdown reduces the RRSP balance while being mindful of the increase to the tax rate. Ta xis be paid but at a lower rate. The Insurance strategy is using a fixed income asset (Bond portfolio) to deposit into a whole life policy thereby eventually sheltering the non-registered portfolio from taxation. The death benefit will be available to offset any estate taxation and/or provide a Tax-Free income stream while the client is living.
Does the strategy have any effect on combined income? I plan on retiring soon with a define pension plan, but my spouse will continue to work . How does this work for married couples ? Thank you for sharing your video 🇨🇦
Hi Debra, thanks for your comment and for watching the video. I'd have your advisor and accountant have a planning discussion and come up with the answer for you. They shouldn't be working independently of one another.
Thank you for your video. I do have a question reguarding RRSP withdrawals. let's say you still have your $100000 dollar per year job and you have a $400.000 dollar mortage and you have $400000 dollar RRSP right now. is it wise to with draw your money from RRSP to pay off our mortages with the idea that althought you are paying taxes, but you are canceling out the intrest that the bank will take for the next 30 years. the idea of having no bank loans must feel nice. plus who know what money is worth after all the compound inflations after 30 years of it sitting in the RRSP thinking compound interest gain will beat compound inflation rate might not be a good turnout...
Thanks for watching the video. I’d prefer calculating the difference between staying invested vs RRSP redemptions, taxes and interest saved. Then the next question is what are you using to provide retirement income if you have no RRSP?
I opened up rrsp this year it is unused contribution, I want to withdraw the money but got to know I will be taxed in it the next year plus the withholding charges. What is the way out not to pay so much money in taxes ?
I have a million dollars in my rsp , I’m 56 and still working with a $160,000 gross income, and contributing $24,000 a year to my rsp . $900,000 home paid for and no debt. What would you suggest my strategy be going forward ?
Thanks for watching the video and for your comment. That's a private discussion. Here's a link to my calendar. calendly.com/aaronwealthmanagement/discovery
@@candychrissy6935 great idea young lady 💡 ….lol…..if I was single ……..but I have a wife,3 adult children and 2 grandchildren. You’ll find out as you grow older that love ,commitment and leadership are factors that also affect financial decisions. Ps. You’re a beautiful young pianist, keep chasing your dreams ,thanks for the laugh 🤭 and enjoy your life journey ❤️
Hope to return to the livestream soon. I was connecting via wifi and I'm satisfied with the video quality. Once I solve the tech issues I'll be back! I miss going live as well
You have stated the meltdown consideration fairly well, but have not explained taxes or tax strategies in enough detail to make this a useful video. People need to undestand the concept of graduated tax rates and their effect one last dollar earned and for couples, the concept of income splitting. You should link this video to other videos for additional info needed.
Even if your income is extremely low l, once you are taking RRSP out you get taxed a lot even if it’s not too much taken in the year. It’s frustrating!
So my question would be, if I make sure that I don't spill over into the next tax bracket does it matter how much I transfer out of my RRSP into my TFSA? I have been making modest transfers of 5 to 10K each year.
It matters. This strategy is accomplishing a couple planning concerns at once. 1) your taking RRSP income while your taxable income is less (presumably your taxable income will be greater later) 2) your trying to lower your RRIF balance so you don't leave money behind for CRA
why convert to a RIF? Why not just withdraw money every year and pay the marginal tax rate at the income level you are at? Of course depends if you want to leave money to someone but if not, why not just pay as you withdraw?
You should be able to keep your RRSP until you die and not have to convert into a rif when you are 71.You should be able to withdraw whatever you want each year depending on your circumstances and not mandated minimums as in a rif.That would be a real self directed retirement plan. I dont know why people dont push for that. That seems fair to me.
Thanks for the video. I did my first RRSP withdrawal (very small) recently and there was a withholding tax. Will I get that withheld tax back when I do my 2023 tax submission? note: first slide spelling error "Intrest" is spelt "Interest"
Thanks for your comment and correction. Yes, when you file your taxes that will be the opportunity to receive the withholding tax back (depending on other adjustments)
@@mikejarmoluk3523 ... that is my plan ... I wasn't aware of the withholding tax when I took the funds out ... had I researched properly snd become aware I would have withdrawn the RRSP at the end of 2023 (say December) then made a claim for the withholding tax in the subsequent tax filing. My plan now is to meltdown my RRSPs at the maximum allowable (about $45k/yr for me and the same for my wife) to stay within the lowest tax rate. Thereafter I will live off my savings, which will have a lower rate as they will be just capital gains on the portion withdrawn.
Open a rrif account and withdraw from it. No withholding tax or take 5000 rrsp withdrawals only so they only hold back 10%. You can do it as much as you need.
Hi Aaron. I like the first example of withdrawal for investing. Can I take a line of credit and put that loan into my TFSA? Or do I have to put money into a non registered account, like a margin account? For example, I withdraw 10k from RRSP, and then get LOC 5k from a bank. (I think a 5K loan interest amount can offset the 10k amount of tax rate.) I have 15K in my hand. I put in a 5K amount into my TFSA from my LOC. Will this offset my tax and keep me in the same tax bracket? And the remaining amount of 10k, can I use it without investing purpose? Thx
When recommending to borrow to invest (9000$), it seemed to me as if you say that the loan is deductible from income tax. That cannot be right - as far as I know only the interest is deductible.
I really enjoy haul I am thinking of withdrawal from rrsp but I know the financial advisor from bmo would want to change my mind. What do I do in that situation
your tax estimate of $217K seems not to take into consideration the marginal tax rate on income. Only the income over $235k is subject to the top marginal rate of 53%
Hi Aaron why don't you tel them to Take out just under $5,000.dollars in January and and June. Then both amounts are only taxed at 10%. Why are you telling them to take out such large amount of money and increase their tax bracket so they loose so much money??
Great question Phyllis, the RRSP Meltdown has a goal of not only increasing your annual income during periods of lower income but also attempting to lower your RRSP balance so as to not leave anything behind at your passing for CRA. While $10K per year may achieve a bump to your income if your 57 retired with 800K in your RRSP you need to withdrawal much more than $10K per year otherwise expect to give hundreds of thousands to CRA at your passing.
10% is what they withhold on a withdrawal less than $5,000 but that isn’t the tax rate that applies to that money… whatever tax bracket you are in is the actual rate that will apply (your marginal tax rate), so almost certainly much high than 10% if you look at the tax bracket charts… you just don’t notice the tax hit until you file your T1 tax return for the year
I did and it costs $50 every time I want to withdraw any money, big or small from my RRSP. So I will roll it over into a RRIF and avoid this fee altogether.
Hi Louie, Thanks for your question. When you say "close" your RRSP account do you mean total withdrawal? You pay income tax when you withdrawal from your RRSP. There are a few strategies. Have a look at this video: th-cam.com/video/t10R4x_6e68/w-d-xo.html
Warren Buffett, the greatest investor of all times, has always said one should not borrow to invest in the stock market. So, the 1st RRSP meltdown strategy is to be avoided like the plague…
What Warren Buffett meant by that was not to invest on margin where you don’t have the money and you’re paying interest on it. In this case you do have the money, you’re just moving it around using debt as a mechanism to reduce your tax burden. Right now we’re in a bear market and ideally you’d invest in a bull market or a few stocks that are very strong.
You should be able to keep your rrsp all your life and withdraw what you want when you want rather than having the govt telling how much to withdraw whether you need it or not. That seems fair and any political party which proposed that would get the vote of everyone with an rrsp.
@@AaronWealthManagement I hope you are going to do a video on this idea because any candidate with this policy all else being equal should be a winner.
The TFSA account is tax free. Your RRSP is a tax deferred account. Most people are only focused on the contribution and haven't taken the time to plan out the withdrawal so when they do it's a lower tax rate as compared to when they contributed. Otherwise you've only benefited from tax deferral.
Taking money out of your business and not paying any income tax would likely be Tax Evasion. Very sketchy. I also don’t see you are a Certified Financial Planner (CFP designation) unless it’s not listed.
Hi Kam, Not "sketchy" just following the tax laws. Let's try this a different way. You own a rental property. The tenants are paying down your debt. You now have equity in the property and you take a line of credit. Are the loan proceeds taxable in your hands? NO! Is that also "sketchy" to you? Have a discussion with a Life Licensed advisor and then you might start questioning the advice you've been given all these years from the banks.
Appreciate your comment. RRSPs are the most widely used retirement product and the most basic method of savings for retirement. There is nothing "high level" about RRSPs. Do you have a topic selection I can help with?
@@patcusack6252 your correct. The point of the video is to educate people on how RRIF income is treated at death. The total tax payable on 406K in Ontario is $174K which is equal to 43%. The top Marginal Tax rate is 53.53% The takeaway here is don’t allow CRA to become a beneficiary of your estate.
58 years young. Retired.. Cashing out rsp to rif now because not working. Use common sense. Later withdraw added to any other money raises income level = more taxes.. Kinda simple, didn't take 10 min to explain.
Hi Johnny, Thanks for comment. Doesn't sound like you watched the entire video.at 7:30 timestamp you can see where the withdrawals are happening. The method before that was trying to cancel the tax with a leverage loan strategy.
Easy. Dont have a RRSP. Nkbody retires on a RRSP. Aftervthe bank and gov takes their fees and taxes you are left with hardly anything. Better if you save your money in a regular account. Stay away from any financial advisor. They are in it for their own commissions and their companies. Not you.
What about early retirement where your employer pays you 1 yr amount to retire? 40k RRSP limit. Say $80k employer payout, do you put 40k of it in a Spousal RRSP and wait 3 years to use that? Pay tax on the remaining 40k, put the amount left after taxes in a TSFA. Basically leaving at 59 years old using a mix of TSFA RRSPs DB pension to get you to 65 to start CPP x 2 & OAS x 2 & DB pension. Basically at 65 you have no investments left, setup so your income 59 to just under 65 is the sane as after.
I just can't stand all the waste of time to get to the subject, the first 6 minutes and nothing yet, get to the point and stop wasting time!!! The first methode, if you could call it that, is at high risk and should not be taken as a real tax saving method. The second methode, if you could call it that, is what everyone should do with a retirement account, spread the withdrawal on a longer period to minimise the total taxes payed. Overall, if you did not know that at the time of retirement, I would recommend you to change adviser or bank, whatever your case may be.
Well he is givimg free education so i'm ok with him making money from youtube. If his comtent is suoer short there is no time tk.play any ads so he can get paid a little. Don't blame him blame youtube monetization
I liquidated my RRSP account over four years when I opened my business back in 2004. I lived very comfortably and was able to roll business profits back in to allow for organic growth. Set to retire in a few months with excellent savings and a very profitable business with liquid assets. The only retirement account I have now is a TFSA which is paying almost $500/month in dividends.
I tell young folks starting out to focus on a TFSA and only set up an RRSP if you have substantial investable funds after filling the TFSA. Overall you might pay a little more in taxes but it simplifies your retirement and reduces potential clawbacks since TFSA withdrawals are not considered as income.
But TFSA contributions are made with after-tax dollars whereas RRSP money has never been taxed - so should be taxable on withdrawal. And TFSA room is not unlimited. The best plan has a mix of both.
I see someone mentioned filling up the TFSA before putting money into an RRSP. Not the best tactic in my view. Doing some kind of split would be more practical if you have a decent income. I used the RRSP to lower my taxable income, then put the tax return into the TFSA. Between age 60 and 70 I stopped working, started the RRSP meltdown, and left my CPP and OAS out of the equation until age 70. My wife and I income split to avoid paying tax at the end of the year. My RRSP meltdown money was used to make my TFSA contribution with the leftover going into my investment funds. At age 70 my RRSP was at zero, and my CPP and OAS income were 30% and 36% higher respectively. When you make the game rules and play your cards right, your golden years will be filled with gold.😅
Great video. Most Canadians are making a huge mistake in taking only the minimum RRIF withdrawal. I've been taking ~3 X the minimum so as to have our RRIFs closed down by the time we are ~80. It's proper estate planning to NOT leave a huge tax burden to one's heirs. Look at your life expectancy people. I can assure you it won't show a result of 95!
Is RRIF tax free for beneficiaries?And same thing for RRSP?
There's a spousal rollover but when the last one dies, it's all taxable in the year of death. It's never tax free.@@joannehung2417
@@joannehung2417 NO, Gov't takes 1/2. Unless its left to a spouse, then they get full amount. Any other beneficiary loses 1/2 to the CRA.
@@joannehung2417no that’s why Patrick is suggesting we pay tax on our RRIF withdrawals each year before we pass away
Canada needs some serious tax reform.
And it needs to start with raising the lowest bracket to reflect the poverty line.
Great Video, clear and concise info, bang on/short and sweet
The RRSP meltdown is always in the back of my mind and this video is a great reminder that the Mrs. and I should be starting this. My wife has considerable savings in RRSP's mostly due to me contributing to her spousal RRSP over many years. My wife stopped working 21 years ago when our daughter was born and at 58 I think we had better start melting down her RRSP. I'm still working btw and plan to retire in a couple of years. Upon death we certainly do not want our estates paying that kind of tax. Currently we deal with a guy who is good at what he does but is more of an investor than a planner and claims to be both.
Thanks for your comment and for watching the video. It’s fairly common for us to prepare retirement plans for clients that had advisor relationships who only manage their investments. We can help. Email: Aaronwealthmanagement@gmail.com
@@AaronWealthManagement Thanks Aaron, I'll keep you in mind.
Great video, lots of folks don’t think of withdrawing RRSP funds before age 65, Great topic and I did a video on this topic on my channel as well. Cheers Rob
Hey Rob, Thanks for your comment and for watching the video. I'm a Subscriber 😁
Hi Aaron. Your videos are excellent! You describe things very well. I would like to do an RRSP meltdown. However I have a question I can never find information on. I receive a survivors benefit. Now at age 60 I am considering whether i should apply for CPP. I read that when I apply for ‘my’ CPP I may actually receive less money per month not more. My husband had a generous income. My employment income was very low. I hope you consider doing a video about this type of situation!
great explanation, well done!
Nicely explained. Have you considered doing a video on the Canadian dividend tax credit? Purchasing Canadian dividend stocks in your cash account can nullify other dividend income.
What is a cash account?
Canadian gov’t really gets you! No inheritance tax supposedly so why isn’t that part of a persons estate, rather than income! We are trying to get our money out of rifs asap!
Recently retired and doing the RRSP meltdown (our only income till we get CPP/OAS @ 65). I have an RRSP and a spousal RRSP and plan to split the withdrawals between them, believing that will be the best way to minimize tax.
Why retire then
@@nephilimshammer9567 37 yrs. of work was enough for me.
@@macker0077what if you left your cpp alone until you are older ? I heard that was a good idea, but we needed the money at 65.
@@jmack619 I retired @ 60 and plan to take CPP & OAS at 65. Most advisors seem to promote leaving it as long as you can if you can afford to (and you're in good health/have longevity in your family). By doing this, you maximize the monthly payout. 70 is the max age you can leave till.
@@macker0077 Best wishes! Sounds like you have a plan! I have been using a free tax program called wealth simple, probably leaving some tax dollars that I should be accounting for.
Thanks for the informative video. Does this withdrawal strategy work if you emigrate to a different country?
Great video. Thanks! Is there an advantage to convert RRSP to RIF prior to 71? I’m 58. Thanks!
I wouldn’t say advantage. You could simply do an RRSP withdrawal
Sorry but your missing the annual $ 300 (15% of $ 2,000) tax credit if you have a small RRIF withdrawal. It makes sense to start a small RRIF before 71. Pension Income tax credit.
@@raymondfranke154I think you get the credit only from age 65. So before I don't think it matters to convert the RRSP to a RRIF.
Great topic and video, I am not an expert but do my own research and calculations regarding the same subject. What I discovered is the same you have mentioned if someone wants to lower tax while withdrawing rrsp which is to draw down during gap years where you stop working but not ready to collect pension/cpp/oas etc. Once other income started to come in, 1/3 of your withdrawal will go to CRA.
That’s exactly what we are thinking of doing. If we retire at 60 and aren’t drawing from our pensions until we are 65 it seems like the perfect time to withdraw RRSPs in those gap years
Absolutely awesome. I know a lot of research and hard work goes into creating such videos so thank you very much!
It seemed like you have somehow spied on me for the last 4 years because the situations you have mentioned in this video (for example: losing job during COVID and not getting any employment after that and still too young to get CPP OR having huge balances in RRSP and not so huge in TFSA and Non-registered accounts etc) ) are exactly what I am finding myself in. Verbatim!
Merci beaucoup en core! Loved this video.
Excellent video Aaron - appreciate the 10 minutes of clear info. Similar to Marcelmed, I had a question about a meltdown using a spousal-funded RSP. If the Pension Income Tax credit is affected by retribution rules for RSPs funded within 3 years, can this be avoided by using previously funded RSPs, (ones with no contributions in 3+ years) even if new $ has gone to other spouse-funded RSPs?
Very helpful hints. Thank you
This is amazing what ur doing I always wanted to know ow how to withdraw from my RRSP tje government is too much. I want to start to take out my RRSP slowly with out of to paid back too much is a very good subject that ur doing love to have the love to have the number so I could link u up. 🙏🏽🤙
Always enjoy your teachings and this video is a great one. Thank you for sharing with all us subscribers 🙂
Unless I missed something, this seems like a long winded way to say: withdraw from your RSP during low income years in order to minimize tax. Why wouldn’t you do that? What is the typical method? 🤔
Every year you get poorer on pension sooooo.
You will be better off to withdraw when you have low or no income prior to age 71, when you Have To Withdraw, they are trying to take away your rrsp advantage, sooooo, I quit my job, living off my rif, debt free, and loving life! At 58 👍
@@andrewf2225I’m gonna be. 48 , Rif? I don’t know much about this stuff but I got both rrsp n Tfsa … worse year ever .. living off
Rif??
Especially because the taxes in Canada are accelerated based on your totals. Up to 15k tax free.15 to 21k taxed 15%. 21 to 53k taxed 25%. 53 to 106k taxed 30% and goes up from there. Notice the largest increase is exactly where middle income earnings get nailed the most... Wonder why everybody is broke 🤔
Maybe there are people who are financially illiterate. This maybe new to them. Take a step back and realize the world doesn’t not revolve around you.
Assuming you are just deferring the tax at the same bracket, you still don't have to pay taxes on the gains every year so more money remains invested so there's still that benefit. isn't that correct?
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it:!
Congrats on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas.
@@marinascholz9963 No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Claire Martha Magalhaes to create a long-term investment strategy, and she assisted me in managing my investments while I focused on my job without any concerns.
@@MariaGarcia-gv8hj Thank you for your advice. It's challenging to find a reliable investment advisor, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
@@marinascholz9963 I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online.
Personally, I feel fortunate to be one of the many people who have had the opportunity to work with Claire Martha Magalhaes. Thanks to her advice and expertise, I have been able to provide for myself and lead a fulfilling life. Claire is a highly competent and trustworthy advisor, and I am truly grateful to have her on my side. It is not easy to find someone who is not only knowledgeable but also has the necessary skills to manage investments effectively. I feel indebted to her and will continue to offer my support and prayers.
Thank you for this!
Great video, very well put together.
Thanks guys. Hope your having a great summer.
You too!@@AaronWealthManagement
This is the best video yet. Now I know why I can retire now . I was going to work until 60 but now I think I can retire now using this strategy. Work pension at 62 and CPP at 65 with RRSP still left
The experts are suggesting to not use the cpp till much later than 65 years old.
@@jmack619 it depends on your financial situation.
Where are you located, you seem knowledgeable, I am looking a financial advisor
Ontario. Email me at: aaronwealthmanagement@gmail.com
Great video and thanks for explaining it so simply. I'm 68 years old and have not withdrew anything from my RRSP. I work with govt and will have a pension for serving for 15 yrs. What would you suggest in terms of withdrawal from RRSP? Leave it until 71 and then withdraw from RRIF as my income will be much less... I e only pension income?
Thanks for watching the video and for your comment. Well, not much time before 71. Normally we could push CPP & OAS to 70 and begin a meltdown but your 2 years away from 70. The plan I would do for you would illustrate deferring CPP & OAS until 70 and examine the difference between converting to RRIF now and doing a RRIF meltdown vs converting at age 71 and then meltdown.
Goal is to minimize tax paid during your life and at death. Well the calculation seems more complex, since you did not consider the tax you need to pay each year on interests from the money you now invest out of your registreted account. So a strategy to withdraw minimum and have your succession pay might not be so bad either. It would be nice to see this simulated into a year to year balance sheet. Thank for the video!.
The more you make the more tax you pay regardless on where the money ends up, your missing the point. The key point is to have $0 in your RRSP upon death. If you meltdown your RRSP and you've moved those funds into TFSA or other non registered investment accounts you could transfer non registered holdings to beneficiaries before death or your executor could do that after death and avoid estate taxes. Your estate tax is purely on the interest those non registered accounts made in the year you passed excluding TFSA . Having any money in your RRSP upon death and your trapped. There is no way out, your paying revenue Canada a big payout.
@@marcelmed4574 What in the case of someone who’s TFSA is already maximized every year? Is it better to empty RRSP sooner or as late as possible?
@@jean-eriksylvain7659 When you retire and you begin melting down you RRIF your goal is to be aware of Canadian tax brackets and maintain the lowest tax bracket possible considering your RRIF withdrawals and other income sources like non registered investments, rental income, capital gains from selling Stocks etc. In almost every scenario you should hold off on collecting your CPP and OAS, both pensions are indexed to inflation and will grow substantially if you wait till your 70 to begin collecting these. The main reason to apply for both CPP and OAS early is if you have a family history for a shortened lifespan OR you need the pension money now to pay for day to day bills etc. If family lifespan is 80+ years then you will come out further ahead by holding off on collecting CPP and OAS till age 70. So yes meltdown that RRIF as evenly as possible with the goal to have $0 upon death. We can't predict when we will pass however if you have early warning signs then its best to request one time higher amount withdrawals in the few preceding years before death.
at 6:48 of this video, you mention that the interest deduction of $9k and the $9k tax would CANCEL EACH OTHER OUT. How? Wouldn't you need the interest to equal the registered withdrawal to offset the tax?
Thanks this is very helpful ❤
"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments."
Well said! My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.
That's a great point! Finding a reliable financial adviser would be essential for me to ensure my retirement plans are well-structured.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
In term of timing, should RRSP meltdown always be done before end of year? Or it doesn't really matter when it should be done?
Hi Michael, thanks for your question. An RRSP meltdown serves two simultaneous goals. 1) To lower the balance of your RRSP so as to not leave it behind to be taxed by CRA at your passing and 2) provide the income you require to sustain your lifestyle spending.
Good video, very useful info.
Very clear,. i am 66 , my wife is 64 , and our strategy is to melt it down up to my wife reach 86 years old , based on the principle that averagee diting age is 84 and that me and my wife seems to have an average health . Is there a better suited strategy that we could use?
You can have 2000 dollar deduction in pension income per year - this is what is needed.
for the average person rrsp is the second best place to save tfsa is the best
My father in law died in December. With his high pension and large RRIF, the tax bill was huge. We did the math. Had he died in January, it would have saved the estate tens of thousands in income tax, because there would have been very little pension to add to the RRIF collapse. So, the advice is to die in January.
May his memory be a blessing.
😂😢
I am actually doing the opposite. Contributing to the RRSP between the ages of 65 and 71 in order to keep all of my OAS
That's a different thought. Something to think about.
Very good Sir!
Sense of humour is appreciated...LOL🙏☺🇨🇦
Thanks for mentioned this. I was wondering if someone would say something about my attempt at humour. 😁
LEAVE CANADA IF YOU CAN
In your other video ("Huge RRSP Mistake to AVOID - You will LOSE 40% of Your RRSP"), you recommended life insurance as a solution to rrsp taxation, but this video recommends meltdown as a solution to the same problem right? So which is better? And you can't do both right, since a meltdown would work against insurance correct?
They're two very different strategies. The RRSP meltdown reduces the RRSP balance while being mindful of the increase to the tax rate. Ta xis be paid but at a lower rate. The Insurance strategy is using a fixed income asset (Bond portfolio) to deposit into a whole life policy thereby eventually sheltering the non-registered portfolio from taxation. The death benefit will be available to offset any estate taxation and/or provide a Tax-Free income stream while the client is living.
Does the strategy have any effect on combined income? I plan on retiring soon with a define pension plan, but my spouse will continue to work . How does this work for married couples ? Thank you for sharing your video 🇨🇦
Hi Debra, thanks for your comment and for watching the video. I'd have your advisor and accountant have a planning discussion and come up with the answer for you. They shouldn't be working independently of one another.
Very informative, thank you
Thank you
Thank you for your video. I do have a question reguarding RRSP withdrawals. let's say you still have your $100000 dollar per year job and you have a $400.000 dollar mortage and you have $400000 dollar RRSP right now. is it wise to with draw your money from RRSP to pay off our mortages with the idea that althought you are paying taxes, but you are canceling out the intrest that the bank will take for the next 30 years. the idea of having no bank loans must feel nice. plus who know what money is worth after all the compound inflations after 30 years of it sitting in the RRSP thinking compound interest gain will beat compound inflation rate might not be a good turnout...
Thanks for watching the video. I’d prefer calculating the difference between staying invested vs RRSP redemptions, taxes and interest saved. Then the next question is what are you using to provide retirement income if you have no RRSP?
I opened up rrsp this year it is unused contribution, I want to withdraw the money but got to know I will be taxed in it the next year plus the withholding charges. What is the way out not to pay so much money in taxes ?
I have a million dollars in my rsp , I’m 56 and still working with a $160,000 gross income, and contributing $24,000 a year to my rsp .
$900,000 home paid for and no debt.
What would you suggest my strategy be going forward ?
Thanks for watching the video and for your comment. That's a private discussion. Here's a link to my calendar. calendly.com/aaronwealthmanagement/discovery
I'd sell everything I own & book one-way ticket to Thailand
@@candychrissy6935 great idea young lady 💡 ….lol…..if I was single ……..but I have a wife,3 adult children and 2 grandchildren.
You’ll find out as you grow older that love ,commitment and leadership are factors that also affect financial decisions.
Ps. You’re a beautiful young pianist, keep chasing your dreams ,thanks for the laugh 🤭 and enjoy your life journey ❤️
@@candychrissy6935 Good suggestion. Today's weather in Phuket, Thailand was a wonderful 30c - Maybe we'll be neighbors soon. :)
Pretty much anything you want. And leaving cpp alone until later years.
To keep it much simpler, just learn how to play the game of taxes.
This is excellent
What people should really be thinking is if the government takes 53% in taxes then there is a serious problem with how their government operates
We miss your Wed night livestream.
Hope to return to the livestream soon. I was connecting via wifi and I'm satisfied with the video quality. Once I solve the tech issues I'll be back! I miss going live as well
very good..thanks .
You have stated the meltdown consideration fairly well, but have not explained taxes or tax strategies in enough detail to make this a useful video. People need to undestand the concept of graduated tax rates and their effect one last dollar earned and for couples, the concept of income splitting. You should link this video to other videos for additional info needed.
Even if your income is extremely low l, once you are taking RRSP out you get taxed a lot even if it’s not too much taken in the year. It’s frustrating!
So my question would be, if I make sure that I don't spill over into the next tax bracket does it matter how much I transfer out of my RRSP into my TFSA? I have been making modest transfers of 5 to 10K each year.
It matters. This strategy is accomplishing a couple planning concerns at once. 1) your taking RRSP income while your taxable income is less (presumably your taxable income will be greater later) 2) your trying to lower your RRIF balance so you don't leave money behind for CRA
why convert to a RIF? Why not just withdraw money every year and pay the marginal tax rate at the income level you are at? Of course depends if you want to leave money to someone but if not, why not just pay as you withdraw?
Louismartin: Converting to a RRIF allows you to take advantage of the pension tax credit.
@@davidhughes6048 still not sure it’s worth it- but thanks
@davidhughes6048 thank you, but what do you mean ?
I am 65 years old and thought my income was less lest year so I took out from RRSP. It’s effects my old age Because my income just went up. 😢
Thanks
We are trying to figure out how to unlock a LIF in Quebec… wax able to unlock in ON but not in Quebec! Help!
You should be able to keep your RRSP until you die and not have to convert into a rif when you are 71.You should be able to withdraw whatever you want each year depending on your circumstances and not mandated minimums as in a rif.That would be a real self directed retirement plan. I dont know why people dont push for that. That seems fair to me.
Only 2 sure things in life tax and death. Even after death tax continues.
Thanks for the video. I did my first RRSP withdrawal (very small) recently and there was a withholding tax. Will I get that withheld tax back when I do my 2023 tax submission? note: first slide spelling error "Intrest" is spelt "Interest"
Thanks for your comment and correction. Yes, when you file your taxes that will be the opportunity to receive the withholding tax back (depending on other adjustments)
Dont you claim rrsp withdrawal the following tax year?
@@mikejarmoluk3523 ... that is my plan ... I wasn't aware of the withholding tax when I took the funds out ... had I researched properly snd become aware I would have withdrawn the RRSP at the end of 2023 (say December) then made a claim for the withholding tax in the subsequent tax filing. My plan now is to meltdown my RRSPs at the maximum allowable (about $45k/yr for me and the same for my wife) to stay within the lowest tax rate. Thereafter I will live off my savings, which will have a lower rate as they will be just capital gains on the portion withdrawn.
@@katethegardener tax credit is applied when your filing your taxes next year.
Open a rrif account and withdraw from it. No withholding tax or take 5000 rrsp withdrawals only so they only hold back 10%. You can do it as much as you need.
Hi Aaron. I like the first example of withdrawal for investing. Can I take a line of credit and put that loan into my TFSA? Or do I have to put money into a non registered account, like a margin account?
For example, I withdraw 10k from RRSP, and then get LOC 5k from a bank. (I think a 5K loan interest amount can offset the 10k amount of tax rate.) I have 15K in my hand.
I put in a 5K amount into my TFSA from my LOC. Will this offset my tax and keep me in the same tax bracket?
And the remaining amount of 10k, can I use it without investing purpose? Thx
When recommending to borrow to invest (9000$), it seemed to me as if you say that the loan is deductible from income tax. That cannot be right - as far as I know only the interest is deductible.
Sorry if there was some confusion. The interest on the loan is tax deductible for the RRSP Meltdown strategy.
I really enjoy haul I am thinking of withdrawal from rrsp but I know the financial advisor from bmo would want to change my mind. What do I do in that situation
Get a second opinion portfolio review you can email me at aaronwealthmanagement@gmail.com
if your net worth is less than $2million, buzz off. thanks
THANKS.
And if your in Quebec you will also pay Revenu Quebec
7 minutes into the video clip and still no recommendations on how to effectively draw down a RRIF
your tax estimate of $217K seems not to take into consideration the marginal tax rate on income. Only the income over $235k is subject to the top marginal rate of 53%
Where are you located
Hi Aaron why don't you tel them to Take out just under $5,000.dollars in January and and June.
Then both amounts are only taxed at 10%.
Why are you telling them to take out such large amount of money and increase their tax bracket so they loose so much money??
Great question Phyllis, the RRSP Meltdown has a goal of not only increasing your annual income during periods of lower income but also attempting to lower your RRSP balance so as to not leave anything behind at your passing for CRA. While $10K per year may achieve a bump to your income if your 57 retired with 800K in your RRSP you need to withdrawal much more than $10K per year otherwise expect to give hundreds of thousands to CRA at your passing.
10% is what they withhold on a withdrawal less than $5,000 but that isn’t the tax rate that applies to that money… whatever tax bracket you are in is the actual rate that will apply (your marginal tax rate), so almost certainly much high than 10% if you look at the tax bracket charts… you just don’t notice the tax hit until you file your T1 tax return for the year
Great information....how about a session on Canadians using their 401k for retirement?
6:07 Don’t trust a “financial advisor” that can’t spell “interest”
@@Tenshiryuken lol
Is the $48,000 plus income for low income - is for the couple or for each individual income? Thanks!
Not sure I understand your question?
What is the fee charged for every single RRSP withdrawal?
Check with your financial institution.
I did and it costs $50 every time I want to withdraw any money, big or small from my RRSP.
So I will roll it over into a RRIF and avoid this fee altogether.
2:21 - to skip the lengthy intro
Working on getting it down to less than a minute 😁
How to withdrawal?
Hi Good day, I just want to ask if I want to close my RRSP account. I am still taxable for that? If I stop contributing or closing my account. Thanks.
Hi Louie, Thanks for your question. When you say "close" your RRSP account do you mean total withdrawal? You pay income tax when you withdrawal from your RRSP. There are a few strategies. Have a look at this video: th-cam.com/video/t10R4x_6e68/w-d-xo.html
@@AaronWealthManagement okay thank you very much for your reply.
Warren Buffett, the greatest investor of all times, has always said one should not borrow to invest in the stock market. So, the 1st RRSP meltdown strategy is to be avoided like the plague…
What Warren Buffett meant by that was not to invest on margin where you don’t have the money and you’re paying interest on it. In this case you do have the money, you’re just moving it around using debt as a mechanism to reduce your tax burden. Right now we’re in a bear market and ideally you’d invest in a bull market or a few stocks that are very strong.
You should be able to keep your rrsp all your life and withdraw what you want when you want rather than having the govt telling how much to withdraw whether you need it or not. That seems fair and any political party which proposed that would get the vote of everyone with an rrsp.
Thanks for your comment Jim.
@@AaronWealthManagement I hope you are going to do a video on this idea because any candidate with this policy all else being equal should be a winner.
So if I understand this right, you`re going to be TAX on you`re hard earn money, no matter what, what ever happen to TAX FREE?
The TFSA account is tax free. Your RRSP is a tax deferred account. Most people are only focused on the contribution and haven't taken the time to plan out the withdrawal so when they do it's a lower tax rate as compared to when they contributed. Otherwise you've only benefited from tax deferral.
Will I lose my CPP disability benefits if I withdraw money from my RRIF?
No
Taking money out of your business and not paying any income tax would likely be Tax Evasion. Very sketchy. I also don’t see you are a Certified Financial Planner (CFP designation) unless it’s not listed.
Hi Kam, Not "sketchy" just following the tax laws. Let's try this a different way. You own a rental property. The tenants are paying down your debt. You now have equity in the property and you take a line of credit. Are the loan proceeds taxable in your hands? NO!
Is that also "sketchy" to you? Have a discussion with a Life Licensed advisor and then you might start questioning the advice you've been given all these years from the banks.
Does a person in Canada does need to be 60 to withdraw RRSPs?
Hi Betty, you can withdraw your RRSP at any age.
Nothing new from this video. Very basic knowledge which I already knew.
Appreciate your comment. RRSPs are the most widely used retirement product and the most basic method of savings for retirement. There is nothing "high level" about RRSPs. Do you have a topic selection I can help with?
if you have $406k you don’t pay 53% on the whole amount. It’s staggered. No tax on the first $15k. Etc.
otherwise great “short” description
@@patcusack6252 your correct. The point of the video is to educate people on how RRIF income is treated at death. The total tax payable on 406K in Ontario is $174K which is equal to 43%. The top Marginal Tax rate is 53.53% The takeaway here is don’t allow CRA to become a beneficiary of your estate.
Its funny that you think most people have a large RRSP these days. Most people don't even have a small one.
Who is having a child at retirement and doing your meltdown then ?
58 years young. Retired.. Cashing out rsp to rif now because not working. Use common sense. Later withdraw added to any other money raises income level = more taxes.. Kinda simple, didn't take 10 min to explain.
You advertise via headline an RRSP withdrawal strategy; then proceed to talk about investing into an RRSP for the video. WTF???
Hi Johnny, Thanks for comment. Doesn't sound like you watched the entire video.at 7:30 timestamp you can see where the withdrawals are happening. The method before that was trying to cancel the tax with a leverage loan strategy.
Why 10 minutes to say what should have taken 30 seconds 🤔
5
That for the video
Easy. Dont have a RRSP. Nkbody retires on a RRSP. Aftervthe bank and gov takes their fees and taxes you are left with hardly anything. Better if you save your money in a regular account. Stay away from any financial advisor. They are in it for their own commissions and their companies. Not you.
What about early retirement where your employer pays you 1 yr amount to retire? 40k RRSP limit. Say $80k employer payout, do you put 40k of it in a Spousal RRSP and wait 3 years to use that? Pay tax on the remaining 40k, put the amount left after taxes in a TSFA. Basically leaving at 59 years old using a mix of TSFA RRSPs DB pension to get you to 65 to start CPP x 2 & OAS x 2 & DB pension. Basically at 65 you have no investments left, setup so your income 59 to just under 65 is the sane as after.
Why would I open a rrsp vs put money into some kind of lockbox
LOL!!!😆
I just can't stand all the waste of time to get to the subject, the first 6 minutes and nothing yet, get to the point and stop wasting time!!!
The first methode, if you could call it that, is at high risk and should not be taken as a real tax saving method.
The second methode, if you could call it that, is what everyone should do with a retirement account, spread the withdrawal on a longer period to minimise the total taxes payed.
Overall, if you did not know that at the time of retirement, I would recommend you to change adviser or bank, whatever your case may be.
Well he is givimg free education so i'm ok with him making money from youtube. If his comtent is suoer short there is no time tk.play any ads so he can get paid a little. Don't blame him blame youtube monetization
get to the point
Not sure I'd trust someone who doesn't seem to know there's a difference between "withdraw" and "withdrawal"