I always pre-pay my estimated income taxes (about 16%) whenever I take money out from my RRIF or receive money from other taxable income sources. One could make the argument that I should delay paying the tax and make interest on that money (not much at today's rates) but any interest on keeping back the taxes owed is unlikely to make much difference to my life. I figure I am retired, I want to keep my life simple rather than having to stress about money at tax time. Of course that's just my personal preference but it works for me.
Each year after I do our taxes I figure out the % of tax paid on my gross income. Knowing that % I can put all my income sources on an XL spread sheet monthly along with the amount of taxes withheld at Source eg RRIF, CPP etc. Thus by using the same calculation as I use on my tax form from the pervious year I can compare the current average tax rate to last years. Personal exemptions go up every year & as long as I stay slightly above last year’s tax rate then I know there will be no tax payable. If I start to fall behind then a call to my financial advisor to increase the tax withheld % from my RRIF or to Service Canada to withhold more taxes at Source from OAS or CPP to maintain the correct tax payable %. By doing this monthly then no surprises at tax time & I can take into account any increases in my revenue stream. I do this for myself & my wife. This is simple, it keeps you current, you can compare the numbers on your T- slips, & it works.
One of the best videos I have watched on this subject. Any video, howsoever long cannot be conclusive on this subject. As a follow up, can we request your thoughts on the best strategies for drawing down from taxable accounts & Dividend income taking. Also your thoughts on rental income vs selling a rental property and investing in more efficient taxable accounts during retirements. Truly appreciate the effort you put into your videos. Thank you.
60% of the labour force in Canada has no pension. Stated more accurately, 60% of the labour force is NOT UNIONIZED. The ENTIRE public sector in Canada is 100% UNIONIZED. 3.6 MILLION people now work in the public sector ...as of JULY 2022. The current population of Canada is 38,400,913 as of Friday, July 1, 2022. That's about as close to 10% of the population of Canada ....BUT more importantly, in 2021, about 15.4 million people aged 15 years and older were employed on a full-time basis in Canada!!!! Now the percentage of PUBLICE SECTOR workers to PRIVATE SECTOR works out to 23.4% of the employed workforce in Canada ....work in the PUBLIC SECTOR!!!! ......and EVERY YEAR ....THEY PUBLIS SECTOR WORKERS DEMAND MORE WAGES, MORE BENEFITS, MORE PENSIONS, AND MORE PENSION BENEFITS .......OR THEY GO ON STRIKE .....which is the case in British Columbia shortly, this year, 2022, for TEACHERS. Their FIRST complaint is they are NOT keeping up with inflation ....which we ALL know through the media is very hight. What the teachers will NOT mention is that their annual income is $100,000 ....and they only work 9 months of the year. They also have a BENEFITS plan that no private sector has, PENSIONS that no private sector has, and PENSION BENEFITS that no private sector has ......BUT ..... if they don't get what they are demanding ...THEY WILL GO ON STRIKE. What's the point here ...considering this video is about CPP??? It's quite simple. CPP is paid out by the FEDERAL GOVERNMENT. In order to do this, they need to either invest contributions and get a guaranteed return ....OR ....THEY WILL NEED TO INCREASE TAXES .....TO EVERYONE!!!! It is a vicious circle with the unionized government workers winning out EVERY TIME. Oh, did I mention that the average pension rate to PUBLIC SECTOR WORKERS is about 50%? That means teacher's pensions is about $50,000 annually ....and they can also double-dip when they retire ...that means work as a substitute teacher for about $450 per day. YUP ...teachers are concerned about their wages not keeping up with inflation. .
OK this was important with lots of information and I appreciate the visual and the summarizing at the end of the presentation. I will have to look at the OAS clawback vid because of the amount of taxes you pointed on with an income example of only 45,000. A wake up call coming in a few years. Thanks for your work. 👍 🇨🇦
in Canada we've been programmed for years to max out RRSP contributions which is great if you have the income but the TFSA is ultimately going to be your best friend particularly I think if you can start early in your career. A nice $200,000 in your TFSA when you retire (contributions plus investment returns) would help your tax situation immensely. IMO, contributing to your RRSP as much as you can and depositing the return into your TFSA is a great plan. Requires a lot of discipline for sure because your return looks better in Cancun than your TFSA. Your thoughts Adam?
You have missed, in your statement, the tax benefits of not paying a higher marginal rate while working, vs a lower, on a higher (assumed) amount, later. Big picture please.
The problem with the RRSP is anyone with a pension gets screwed in the end. My mother was a religious RRSP contributor, because it was the thing to do. But her pension meant she had a high retirement income, so her RRSP was taxed more than it would have been if she paid the taxes at source and invested her savings outside (pre TFSA). She never talked to us about money so we had no idea she was paying too much for taxes, and it impacted her quality of life and we only understood when the estate was finalized. If you have a pension, get the advice to save it optimally.
@@ApresSavant your last line sums it up. Sorry to hear your mom wasn't able to capitalize on her retirement as much as she would have liked. Per my first line, we were programmed to contribute without thinking about future tax concerns. This is where Adam's channel has been so helpful. And again, max that TFSA!
Hey there, I have been waiting for the notification in this topic....so looking forward to now viewing it...and bookmarking it for future reference. 😀 👍. 🇨🇦
@@ParallelWealth indeed, you did say to stay tuned to "next week" for this video and I was not disappointed. You know, from the percentage of tax due to tax margin, D A R N IT, looks like in two years from now I will be in the highest margin....I never thought 20 yrs ago I would have got myself in such a money making situation...no complaints...I guess I will use your suggestion and put money into renovations of the homestead eh! Your suggestions are really helpful! Thank you so much👍 😉 Iwill continue to keep watching your vids.
Very good presentation Adam. You have shown all the key details which affects the Tax bill. Being in my 70's I just got into retirement. The RRIF and CPP are triggering a substantial Tax bill. I have a quarterly tax payment which I instituted with the CRA. This helped to keep my end of the year tax bill low. I'm looking forward to your next installment on how to reduce the quarterly installment. Excellent presentation.
I recently found out that my financial institution is calculating my RRSP withholding tax based on my cumulative withdrawals for the year. I withdrew $10,000 earlier in the year and they withheld 20%. When I went to withdraw another $10,000 I was expecting the tax to be 20% again and was told that because my total withdrawals were over $15,001 they would be withholding 30%. So withdrawing smaller amounts may not necessarily work depending on how often you do it in the tax year.
That is why to start the RRSP meltdown strategy at age 45, and move those mutual funds to help max out TFSA and then any overflow to corporate class(T-series). Only subject to capital gain tax rather get tax at 100% plus tax withhold issue compare to RRSP. You won’t have those tax withhold issue for retirement income needs. Avoid having your money to transfer to RRIF. You’ll be ahead on the money game than majority of Canadians. Freedom 49 is achievable and doable if you plan it out. Cheers!
Hello Dear thank you for the information is really helpful I have a question I haven't done my taxes for two years I am already retair is possible that you give any advice please I am lost Thank you so much Maritza
Hello Adam. Thanks for the info i am looking to retire in April 2022i am 64 and do not have a planer.only 17 years of pension wish i didn't take cpp at 60 i am getting a lot from your video's going to sell my home in Ontario and buy a much cheaper home in Manitoba I will max out my tfsa not sure what to invest the rest of the money in would like to hear from you
Under your tips and strategies section of this video where does pension splitting fit in for tax planning in retirement????? ......sorry if you have already covered this in other videos. Thanks. Like your content!!!
In contrast to getting CPP or OAS to withhold tax at source, could a better strategy be to make deposits to my MyCRA account when money comes available during the year? Also, how would this be claimed at tax time? Would it be similar to claiming taxes paid as instalments?
I am a teacher who is retiring in June 22 and plan to supply teach a bit in the first 2-3 yrs of retirement. I am debating about whether to take my CPP now (just turned 60) as financially, it would allow me to do some travelling. I know it might be best to delay taking CPP but my parents/ grandparents all died well before 80. What would you do if you were in my position? Thanks!
If it is the difference between enjoying retirement while healthy and not, then look to take it now....as long as you still have enough later. I assume you have a pension, so you should be fine
@@ParallelWealth Thank you, yes I do have a pension that will be equal to 70% of my current take home pay. My husband still has a few years to work and he plans to delay CPP as his pension will be much less. I just hope the tax man doesn't take too much of my CPP earnings away...was unsure how to find out if it might put me into the next bracket? Really enjoy your videos.
60% of the labour force in Canada has no pension. Stated more accurately, 60% of the labour force is NOT UNIONIZED. The ENTIRE public sector in Canada is 100% UNIONIZED. 3.6 MILLION people now work in the public sector ...as of JULY 2022. The current population of Canada is 38,400,913 as of Friday, July 1, 2022. That's about as close to 10% of the population of Canada ....BUT more importantly, in 2021, about 15.4 million people aged 15 years and older were employed on a full-time basis in Canada!!!! Now the percentage of PUBLICE SECTOR workers to PRIVATE SECTOR works out to 23.4% of the employed workforce in Canada ....work in the PUBLIC SECTOR!!!! ......and EVERY YEAR ....THEY PUBLIS SECTOR WORKERS DEMAND MORE WAGES, MORE BENEFITS, MORE PENSIONS, AND MORE PENSION BENEFITS .......OR THEY GO ON STRIKE .....which is the case in British Columbia shortly, this year, 2022, for TEACHERS. Their FIRST complaint is they are NOT keeping up with inflation ....which we ALL know through the media is very high this year for very obvious temporary reasons ...but it is an mechanism to accelerate wage and benefit increases. When inflations drops back ...the increases will most certainly remain. What the teachers will NOT mention is that their annual income is $100,000 ....and they only work 9 months of the year. They also have a BENEFITS plan that no private sector has, PENSIONS that no private sector has, and PENSION BENEFITS that no private sector has ......BUT ..... if they don't get what they are demanding ...THEY WILL GO ON STRIKE. What's the point here ...considering this video is about CPP??? It's quite simple. CPP is paid out by the FEDERAL GOVERNMENT. In order to do this, they need to either invest contributions and get a guaranteed return ....OR ....THEY WILL NEED TO INCREASE TAXES .....TO EVERYONE!!!! It is a vicious circle with the unionized government workers winning out EVERY TIME. Oh, did I mention that the average pension rate to PUBLIC SECTOR WORKERS is about 50%? That means teacher's pensions is about $50,000 annually ....and they can also double-dip when they retire ...that means work as a substitute teacher for about $450 per day. YUP ...teachers are concerned about their wages not keeping up with inflation. Well you did your thing Laurie, of complaining throughout your teaching tenure ....always making out that "times are tough" ....and here you are with 70% of your $100.000 income ...FOR THE REST OF YOUR LIFE. .
Didn't mention it...another video. Try to keep them to 20 mins max and this one got past. And paying quarterly still doesn't necessarily avoid an unexpected tax bill.
@@ParallelWealth Yes a great idea to do a video on quarterly payments (i.e what triggers them, can they be avoided if you pay the proper amounts, even if large, on time)??
Hi Adam, When I retire and file my taxes, will the Basic Personal Amount (BPA) still apply? I can't seem to find an answer on Canada Revenu only that is applies to all individuals. Does this include retired individuals? - thanks, Cara in Montreal.
I am 66 drive long haul truck. I make close to the 79000 gross every year. I started taking cpp and oas earlier in the year. I don't wish to create a clawback scenario. I need to know do I need to work less to bring the gross income down and or donate to bring my final income to an acceptable non claw back scenario.
Let's say I have a source of tax free income in my "retire early" retirement, but also rrsp available to use and no cpp and oas just yet. How much of rrsp could I draw per year and owe no tax (in Ontario, married)? Thx.
Change brokerages...lol. No but seriously, this seems like a cash grab and you may want to consider a different brokerage moving forward. National Bank just announced free trades in Canada and hopefully more to follow.
@@ParallelWealth Registered account withdrawal (only applies to RRSP or LIRA) $50*; * Subject to GST and provincial taxes. So basically you first pay sell stock commision then pay 50+HST everytime you withdraw.
I am in my early fithy. I just left my company. if I have an opportunity to withdraw company pension (FHU)cause I still don't have a job. Should I withdraw from company pension or RRSP? Is the tax bracket 30% once pass 60k? Is it worth to withdraw now if the tax bracket is 30%? Will I be at risk of anything if I apply FHU? thank you very muc
Quick Question - if you withdraw $10,000 from your RRSP, wouldn't you pay $1500 in withholding tax? 10% on the first $5000 (so $500) and then 20% on the next $5000 (so $1000) making it $1500 in total?
Hi sir, I thought all withdrawal from rrsp or rrif are income and you have to report it as an income in your return and to pay tax for it. How can it be tax free?
@@tinaguan3949 After 65 you cand withdraw 2000 dollars from RRIF if RRIF is small it could be 200 dollars withdrawl tax that will be credited through income tax filing. All you have to do is to transfer part of your RRSP to RRIF. It can be done untill you are 71 at this point it will become automatic. Whoever is to ignore it just forfeit the opportunity to save money.
maybe consider the scenario of Income of under $30,000.00 a year with no wiggle room to RRSP/plus paying tax on monies that were made; on $$ currently taxed $$ is ridiculous/ You would have to come up with a better incentive to get my pennies so I can pay them dimes/or Does it come with a free Unicorn🦄
I always pre-pay my estimated income taxes (about 16%) whenever I take money out from my RRIF or receive money from other taxable income sources. One could make the argument that I should delay paying the tax and make interest on that money (not much at today's rates) but any interest on keeping back the taxes owed is unlikely to make much difference to my life. I figure I am retired, I want to keep my life simple rather than having to stress about money at tax time. Of course that's just my personal preference but it works for me.
Each year after I do our taxes I figure out the % of tax paid on my gross income. Knowing that % I can put all my income sources on an XL spread sheet monthly along with the amount of taxes withheld at Source eg RRIF, CPP etc. Thus by using the same calculation as I use on my tax form from the pervious year I can compare the current average tax rate to last years. Personal exemptions go up every year & as long as I stay slightly above last year’s tax rate then I know there will be no tax payable. If I start to fall behind then a call to my financial advisor to increase the tax withheld % from my RRIF or to Service Canada to withhold more taxes at Source from OAS or CPP to maintain the correct tax payable %. By doing this monthly then no surprises at tax time & I can take into account any increases in my revenue stream. I do this for myself & my wife. This is simple, it keeps you current, you can compare the numbers on your T- slips, & it works.
One of the best videos I have watched on this subject. Any video, howsoever long cannot be conclusive on this subject. As a follow up, can we request your thoughts on the best strategies for drawing down from taxable accounts & Dividend income taking. Also your thoughts on rental income vs selling a rental property and investing in more efficient taxable accounts during retirements. Truly appreciate the effort you put into your videos. Thank you.
60% of the labour force in Canada has no pension. Stated more accurately, 60% of the labour force is NOT UNIONIZED. The ENTIRE public sector in Canada is 100% UNIONIZED.
3.6 MILLION people now work in the public sector ...as of JULY 2022. The current population of Canada is 38,400,913 as of Friday, July 1, 2022. That's about as close to 10% of the population of Canada ....BUT more importantly, in 2021, about 15.4 million people aged 15 years and older were employed on a full-time basis in Canada!!!!
Now the percentage of PUBLICE SECTOR workers to PRIVATE SECTOR works out to 23.4% of the employed workforce in Canada ....work in the PUBLIC SECTOR!!!! ......and EVERY YEAR ....THEY PUBLIS SECTOR WORKERS DEMAND MORE WAGES, MORE BENEFITS, MORE PENSIONS, AND MORE PENSION BENEFITS .......OR THEY GO ON STRIKE .....which is the case in British Columbia shortly, this year, 2022, for TEACHERS.
Their FIRST complaint is they are NOT keeping up with inflation ....which we ALL know through the media is very hight.
What the teachers will NOT mention is that their annual income is $100,000 ....and they only work 9 months of the year. They also have a BENEFITS plan that no private sector has, PENSIONS that no private sector has, and PENSION BENEFITS that no private sector has ......BUT ..... if they don't get what they are demanding ...THEY WILL GO ON STRIKE.
What's the point here ...considering this video is about CPP??? It's quite simple. CPP is paid out by the FEDERAL GOVERNMENT. In order to do this, they need to either invest contributions and get a guaranteed return ....OR ....THEY WILL NEED TO INCREASE TAXES .....TO EVERYONE!!!!
It is a vicious circle with the unionized government workers winning out EVERY TIME. Oh, did I mention that the average pension rate to PUBLIC SECTOR WORKERS is about 50%? That means teacher's pensions is about $50,000 annually ....and they can also double-dip when they retire ...that means work as a substitute teacher for about $450 per day. YUP ...teachers are concerned about their wages not keeping up with inflation.
.
OK this was important with lots of information and I appreciate the visual and the summarizing at the end of the presentation. I will have to look at the OAS clawback vid because of the amount of taxes you pointed on with an income example of only 45,000.
A wake up call coming in a few years. Thanks for your work. 👍 🇨🇦
in Canada we've been programmed for years to max out RRSP contributions which is great if you have the income but the TFSA is ultimately going to be your best friend particularly I think if you can start early in your career. A nice $200,000 in your TFSA when you retire (contributions plus investment returns) would help your tax situation immensely. IMO, contributing to your RRSP as much as you can and depositing the return into your TFSA is a great plan. Requires a lot of discipline for sure because your return looks better in Cancun than your TFSA. Your thoughts Adam?
Couldn't agree more on the RRSP and refund to TFSA.
You have missed, in your statement, the tax benefits of not paying a higher marginal rate while working, vs a lower, on a higher (assumed) amount, later. Big picture please.
The problem with the RRSP is anyone with a pension gets screwed in the end. My mother was a religious RRSP contributor, because it was the thing to do. But her pension meant she had a high retirement income, so her RRSP was taxed more than it would have been if she paid the taxes at source and invested her savings outside (pre TFSA). She never talked to us about money so we had no idea she was paying too much for taxes, and it impacted her quality of life and we only understood when the estate was finalized. If you have a pension, get the advice to save it optimally.
@@ApresSavant your last line sums it up. Sorry to hear your mom wasn't able to capitalize on her retirement as much as she would have liked. Per my first line, we were programmed to contribute without thinking about future tax concerns. This is where Adam's channel has been so helpful. And again, max that TFSA!
Excellent video thank you ! I always like the videos on decumalation strategies
Hey there, I have been waiting for the notification in this topic....so looking forward to now viewing it...and bookmarking it for future reference. 😀 👍. 🇨🇦
Hope you enjoy it!
@@ParallelWealth indeed, you did say to stay tuned to "next week" for this video and I was not disappointed. You know, from the percentage of tax due to tax margin, D A R N IT, looks like in two years from now I will be in the highest margin....I never thought 20 yrs ago I would have got myself in such a money making situation...no complaints...I guess I will use your suggestion and put money into renovations of the homestead eh! Your suggestions are really helpful! Thank you so much👍 😉 Iwill continue to keep watching your vids.
I guess there is a major difference between how to "avoid a large tax bill", and "how to avoid a large unexpected tax bill." eh?
My RRSP's took a serious hit over the last few years. With less then 2 years to go to retirement, I am not a happy camper.
Very good presentation Adam. You have shown all the key details which affects the Tax bill. Being in my 70's I just got into retirement. The RRIF and CPP are triggering a substantial Tax bill. I have a quarterly tax payment which I instituted with the CRA. This helped to keep my end of the year tax bill low. I'm looking forward to your next installment on how to reduce the quarterly installment. Excellent presentation.
I recently found out that my financial institution is calculating my RRSP withholding tax based on my cumulative withdrawals for the year. I withdrew $10,000 earlier in the year and they withheld 20%. When I went to withdraw another $10,000 I was expecting the tax to be 20% again and was told that because my total withdrawals were over $15,001 they would be withholding 30%. So withdrawing smaller amounts may not necessarily work depending on how often you do it in the tax year.
I have heard this before. Never had this issue on our end with clients, but some institutions may crack down on this.
That is why to start the RRSP meltdown strategy at age 45, and move those mutual funds to help max out TFSA and then any overflow to corporate class(T-series). Only subject to capital gain tax rather get tax at 100% plus tax withhold issue compare to RRSP.
You won’t have those tax withhold issue for retirement income needs.
Avoid having your money to transfer to RRIF.
You’ll be ahead on the money game than majority of Canadians.
Freedom 49 is achievable and doable if you plan it out. Cheers!
I work at one this is definitely a thing. It is cumulative.
good stuffs. thanks.
can you make a video about how TFSA can be taxed or it will not be taxed because it was money after taxed?
Search our videos - we have a few on this we did the past year
Hello Dear thank you for the information is really helpful
I have a question I haven't done my taxes for two years I am already retair is possible that you give any advice please I am lost
Thank you so much
Maritza
What about pension incomespliting with your spouse? That can be a significant tax saving.
It's built into the plans - but not all income can be split and even with splitting taxes can rise high in these situations.
Thanks very much for the great information...!!
Hello Adam. Thanks for the info i am looking to retire in April 2022i am 64 and do not have a planer.only 17 years of pension wish i didn't take cpp at 60 i am getting a lot from your video's going to sell my home in Ontario and buy a much cheaper home in Manitoba I will max out my tfsa not sure what to invest the rest of the money in would like to hear from you
You can learn more about our firm and what we do for our clients at www.parallelwealth.com/ffs
Under your tips and strategies section of this video where does pension splitting fit in for tax planning in retirement?????
......sorry if you have already covered this in other videos.
Thanks. Like your content!!!
We have covered this in other videos. Income splitting will help reduce the tax bill potentially, but you still need to plan accordingly.
In contrast to getting CPP or OAS to withhold tax at source, could a better strategy be to make deposits to my MyCRA account when money comes available during the year? Also, how would this be claimed at tax time? Would it be similar to claiming taxes paid as instalments?
Possibly, then get a tax credit at filing time. Not the cleanest way to do it.
I am a teacher who is retiring in June 22 and plan to supply teach a bit in the first 2-3 yrs of retirement. I am debating about whether to take my CPP now (just turned 60) as financially, it would allow me to do some travelling. I know it might be best to delay taking CPP but my parents/ grandparents all died well before 80. What would you do if you were in my position? Thanks!
If it is the difference between enjoying retirement while healthy and not, then look to take it now....as long as you still have enough later. I assume you have a pension, so you should be fine
@@ParallelWealth Thank you, yes I do have a pension that will be equal to 70% of my current take home pay. My husband still has a few years to work and he plans to delay CPP as his pension will be much less. I just hope the tax man doesn't take too much of my CPP earnings away...was unsure how to find out if it might put me into the next bracket? Really enjoy your videos.
60% of the labour force in Canada has no pension. Stated more accurately, 60% of the labour force is NOT UNIONIZED. The ENTIRE public sector in Canada is 100% UNIONIZED.
3.6 MILLION people now work in the public sector ...as of JULY 2022. The current population of Canada is 38,400,913 as of Friday, July 1, 2022. That's about as close to 10% of the population of Canada ....BUT more importantly, in 2021, about 15.4 million people aged 15 years and older were employed on a full-time basis in Canada!!!!
Now the percentage of PUBLICE SECTOR workers to PRIVATE SECTOR works out to 23.4% of the employed workforce in Canada ....work in the PUBLIC SECTOR!!!! ......and EVERY YEAR ....THEY PUBLIS SECTOR WORKERS DEMAND MORE WAGES, MORE BENEFITS, MORE PENSIONS, AND MORE PENSION BENEFITS .......OR THEY GO ON STRIKE .....which is the case in British Columbia shortly, this year, 2022, for TEACHERS.
Their FIRST complaint is they are NOT keeping up with inflation ....which we ALL know through the media is very high this year for very obvious temporary reasons ...but it is an mechanism to accelerate wage and benefit increases. When inflations drops back ...the increases will most certainly remain.
What the teachers will NOT mention is that their annual income is $100,000 ....and they only work 9 months of the year. They also have a BENEFITS plan that no private sector has, PENSIONS that no private sector has, and PENSION BENEFITS that no private sector has ......BUT ..... if they don't get what they are demanding ...THEY WILL GO ON STRIKE.
What's the point here ...considering this video is about CPP??? It's quite simple. CPP is paid out by the FEDERAL GOVERNMENT. In order to do this, they need to either invest contributions and get a guaranteed return ....OR ....THEY WILL NEED TO INCREASE TAXES .....TO EVERYONE!!!!
It is a vicious circle with the unionized government workers winning out EVERY TIME. Oh, did I mention that the average pension rate to PUBLIC SECTOR WORKERS is about 50%? That means teacher's pensions is about $50,000 annually ....and they can also double-dip when they retire ...that means work as a substitute teacher for about $450 per day. YUP ...teachers are concerned about their wages not keeping up with inflation.
Well you did your thing Laurie, of complaining throughout your teaching tenure ....always making out that "times are tough" ....and here you are with 70% of your $100.000 income ...FOR THE REST OF YOUR LIFE.
.
Did I miss it or did you not mention the mandatory quarterly payment of income tax if you earn over a specified amount of income ?
Didn't mention it...another video. Try to keep them to 20 mins max and this one got past. And paying quarterly still doesn't necessarily avoid an unexpected tax bill.
@@ParallelWealth Yes a great idea to do a video on quarterly payments (i.e what triggers them, can they be avoided if you pay the proper amounts, even if large, on time)??
Hi Adam, When I retire and file my taxes, will the Basic Personal Amount (BPA) still apply? I can't seem to find an answer on Canada Revenu only that is applies to all individuals. Does this include retired individuals? - thanks, Cara in Montreal.
I am 66 drive long haul truck. I make close to the 79000 gross every year. I started taking cpp and oas earlier in the year. I don't wish to create a clawback scenario. I need to know do I need to work less to bring the gross income down and or donate to bring my final income to an acceptable non claw back scenario.
Please tell me if I withdraw my Rrif from age 50 and till 60 i want to just withdraw the accumulated amount how do I do that?
Let's say I have a source of tax free income in my "retire early" retirement, but also rrsp available to use and no cpp and oas just yet. How much of rrsp could I draw per year and owe no tax (in Ontario, married)? Thx.
Buying physical gold as saving is it consider Tax shelter income source ? is that a good strategy?
Ye, especially now
small lumpsum withdraw rrsp not working, as my brokage will charge 50$+HST, every time I withdraw, how to solve that?
Change brokerages...lol. No but seriously, this seems like a cash grab and you may want to consider a different brokerage moving forward. National Bank just announced free trades in Canada and hopefully more to follow.
@@ParallelWealth Registered account withdrawal
(only applies to RRSP or LIRA) $50*; * Subject to GST and provincial taxes. So basically you first pay sell stock commision then pay 50+HST everytime you withdraw.
so if I move to national bank I only save for comission not save for the 50$+HST
My financial adviser told me they were keeping 10% before I could even ask her. Is that enough?
Going to depend on your income. Ask them to run all income sources to determine average tax rate. That's the number to target.
@@ParallelWealth she said I’ll be in a low tax bracket
Do 10% first year. If you owe taxes at tax time then increase following year.
@@ParallelWealth that’s the plan because the 10% is not set in stone as it might not be enough.
If I see this right, my wife and I can have a income of $49k each and be in the lowest tax bracket. Am I correct? Thanks. Also we are in Alberta.
Lowest marginal tax rate in Alberta currently is 25% up to $49,020. So yes!
@@ParallelWealth so if the tax rate is 25%, how then in your examples is the person only paying 7% taxes?
@@patswayze2493 average tax rate. Not marginal
I am in my early fithy. I just left my company. if I have an opportunity to withdraw company pension (FHU)cause I still don't have a job. Should I withdraw from company pension or RRSP? Is the tax bracket 30% once pass 60k? Is it worth to withdraw now if the tax bracket is 30%? Will I be at risk of anything if I apply FHU? thank you very muc
Quick Question - if you withdraw $10,000 from your RRSP, wouldn't you pay $1500 in withholding tax? 10% on the first $5000 (so $500) and then 20% on the next $5000 (so $1000) making it $1500 in total?
Nope, 20% on the whole amount
What is GIS??
Guaranteed income supplement
The first 2000 dollars from RRIF withdrawal are tax free!
You bet!
Hi sir, I thought all withdrawal from rrsp or rrif are income and you have to report it as an income in your return and to pay tax for it. How can it be tax free?
@@tinaguan3949 After 65 you cand withdraw 2000 dollars from RRIF if RRIF is small it could be 200 dollars withdrawl tax that will be credited through income tax filing. All you have to do is to transfer part of your RRSP to RRIF. It can be done untill you are 71 at this point it will become automatic. Whoever is to ignore it just forfeit the opportunity to save money.
maybe consider the scenario of Income of under $30,000.00 a year with no wiggle room to RRSP/plus paying tax on monies that were made; on $$ currently taxed $$ is ridiculous/ You would have to come up with a better incentive to get my pennies so I can pay them dimes/or Does it come with a free Unicorn🦄
Feeling pretty lucky to own a home even if the interest went up/and it kills to pay a higher mortgage but better than rents right now/Thank YOU LORD
By keeping assets out of Canada 😇