Send us Fan Mail

RRSPs are not a scam, but using one without a withdrawal plan can create an avoidable tax problem.
In this episode, we explain when RRSP contributions help, when they don't, and why retirement withdrawals need to be planned years in advance.

What I cover:

• Why an RRSP is best understood as a tool for moving income between years
• The mistake people make when they spend their RRSP tax refund
• How one client’s decision may have cost approximately $12,000
• Why taking no RRSP income in early retirement can backfire
• How RRIF withdrawals, pensions, CPP, and OAS can stack together
• Why automatically maximizing your RRSP is not always the best strategy

Chapters:

00:00 Are RRSPs a scam?
01:12 What an RRSP actually does
02:18 The problem with spending the tax refund
04:40 The RRSP decision that may have cost $12,000
06:35 Why the withdrawal strategy matters
08:28 How a large RRSP can become a retirement tax trap
13:12 Using lower-income years for withdrawals
25:02 When maximizing your RRSP may be the wrong move

RRSP planning is not a way to get a tax refund. Deciding when you want to recognize the income and pay the tax is what they're designed for.

Subscribe for more practical conversations about Canadian retirement, tax, and financial planning.

Website | Youtube | Linkedin