Great Video Kent .. I like the idea of the RRSP meltdown ... and waiting for 70 to collect CPP. I also like the GIC ladder. I am not risk adverse ..but like you say when in retirement you need the time to let the investments ride out the market. I figure in todays dollars my expenses are house , food , travel , entertainment , taxes etc.... is no more than $50,000. I would like to meltdown my RRSP most efficiently and early as possible. (that does not mean I have to spend it all ha ha). Yours videos are always infromative.. Thanks ...

@K4Financial

2 жыл бұрын

No, it definitely doesn’t mean that you need to spend it. Sometimes it just makes sense to peel more out than you need and put it into a taxable account for later. Once I get this new screen sharing thing set up, I’ll do more real life strategies, among other things.

Feel better. Boost your immunity. Thanks for the video Kent.

$4000/month from pension income - OK ....next video. Yes, I'm jealous ;)

@tom1a4

2 жыл бұрын

How does she get this pension income???

@amdelorey

Жыл бұрын

@@tom1a4 he said she was a teacher for her lifetime.

This is very similar to what I've got in mind.

One thing Kent. You said that the interest in a GIC does not compound. I don't believe that is correct. I've had GICs that have paid compounding interest. Other than that, great video and great plan.

@K4Financial

2 жыл бұрын

Yes, you’re correct. Haven’t paid attention in a long time as no one owned them and was going off of an old memory. Definitely a mistake on my part.

Trust over crap I like that!

Hi! I’m not clear why it would not have been a good idea to postpone OAS to 70, leading to a boost of 36% in OAS payments, while increasing the RRSP meltdown by a corresponding amount until age 70.

@K4Financial

Жыл бұрын

I believe that in this case, she had already started OAS, so it wasn’t a factor to consider

Hey Kent ... love your honesty and straight forward thinking. I have gone through 3 financial advisors who only cared about their retirement and not miine! Regarding RSP meltdown, have you worked with RRSP mortgage in which I am the lender and the borrower (through a MIC)?

@K4Financial

10 ай бұрын

Thanks. No, I have never set one up before as it’s not a strategy I’m comfortable with.

Hey Kent, this year I maxed out my TFSA and used up all my RRSP contribution room. If I invest in a cash account should I avoid dividend stocks? Don’t know how capital gains work. Plan on making over 100K for the next 5 years or so. My work pension is RRSP based and eats up most of my room so I won’t be getting to Buy my own RRSPs on a large scale any time soon. Do you have any videos on this topic? Thanks.

@jagjitparhar214

2 жыл бұрын

As far as I understand. Capital gains are taxed this way. Say you make $1000 profit in a year. You keep 500 and get taxed on the remaining 500 depending on your tax rate. If your in a 35 tax bracket. You would pay 175 total. Correct me if I’m wrong? I believe dividend income is even more beneficial. I love the RRSP meltdown as well. Only thing I disagree with is the GIC ladder. Buy a blue chip rock solid company that pays a 4 percent yield.

@Ian-of9oi

2 жыл бұрын

@@jagjitparhar214 thanks for the info.

@K4Financial

2 жыл бұрын

@@jagjitparhar214 that’s correct, but dividends are not more tax advantageous depending on the marginal tax bracket they fall into and they’re taxed every year, while you don’t have to realize the gains until you sell. As for the GIC ladder vs. Blue chip stocks paying 4%. That’s great for long term, but 4% on a stock that drops 30% in value is not equivalent to 4% guaranteed. You also have a higher tolerance for risk than she does.

@jagjitparhar214

2 жыл бұрын

@@K4Financial thanks Kent for the clarification. If dividends are paid by a Canadian company is there not a rule that they already paid tax to the CRA and we don’t get hit with another tax bill from the government. And your absolutely right about risk tolerance and time frame I guess. But seeing that this Client is guaranteed a set amount from her pension CPP and OAS what’s the real risk to her 125k RRSP’s? Will she be eating crackers if her RRSP went to zero? Sounds like she would still be fine. This lady has it going on with multiple income streams. Too bad that there isn’t a TFSA too.

@K4Financial

2 жыл бұрын

@@jagjitparhar214 oh yeah, she’s totally fine. There’s no chance of failure in her case, just the risk vs reward isn’t really worth it to make a tiny bit of extra money compared to losing tens of thousands. I’ll do a video on dividends and how they’re taxed right away. You get a credit back, which is the offset for what the company has paid, so that there’s no double taxation. It works out to close to what you pay with capital gains, but is a bit more if you’re in a higher tax bracket.

Yes! And you can take this video to the BANK! Kents retirement plans are always recession and modern day great depression proof

Classic case of over saving for retirement. I see many teachers that do this. It seems they don't understand they have a gold plated pension lol

@jeffho1727

Жыл бұрын

Teaching after my Army time and yeah, its overplanning because thats how they've gotten through their careers. There's literally less then a minute to pull something out of your hat before the class starts going off the rails. So there's a bit of a doomsday attitude.

Hey Kent, got a question for you or anybody on your team. If I make $1000 in a non registered account does that contribute to my RRSP room? Would $1000 stock earnings buy me $180 in RRSP contribution room? Thanks.

@K4Financial

Жыл бұрын

No, has to be earned income

@Ian-of9oi

Жыл бұрын

@@K4Financial ok thanks for the quick reply. That’s not what I was hoping to hear.

Oh no! Did you catch COVID at the game? Yeesh! Glad you're feeling better.

@K4Financial

2 жыл бұрын

Not sure. I think Leo got it first. I was mostly fine, thanks. Was just low on energy for a few days.

Perhaps it is better to diversify by getting GICs from different institutions?

@K4Financial

2 жыл бұрын

Why is that?

@oldtechie6834

2 жыл бұрын

@@K4Financial Don't put all eggs in one basket? I don't know how safe is a particular institution.

@K4Financial

2 жыл бұрын

@@oldtechie6834 but it’s the exact amount that’s covered by CDIC, so the money is insured regardless and they offer the best rates, so it’s not even remotely a concern in this case

@tom1a4

2 жыл бұрын

@@K4Financial in this particular case how does she got $4,000 income?

@K4Financial

2 жыл бұрын

@@tom1a4 she was a teacher and that’s her pension

Cant take serious financial advice from someone who wear caps indoors.

@K4Financial

2 жыл бұрын

And I wouldn’t give financial advice to someone as judgemental as you, so it’s a win-win by design.

@markust8904

2 жыл бұрын

@@K4Financial Oh yes! burn!!!!

@johnsheldon8098

2 жыл бұрын

Reading your comment, I'm reminded of the acronym THINK. Is it True? Is it Helpful? Is it Inspiring? Is it Necessary? Is it Kind? A little bit of self reflection might be in order J J.

@oneballwill6461

2 жыл бұрын

That's a you thing. And you things should be kept to yourself.

Wish I knew about you earlier. with the terrible economy my RRSP has lost 7,000 what should be done?

@K4Financial

Жыл бұрын

I’m not sure. Depends on a bunch of factors.

@controlfoodcontrolthepeopl5627

Жыл бұрын

@@K4Financial such as......

@K4Financial

Жыл бұрын

@@controlfoodcontrolthepeopl5627 Age, asset level, retirement needs, income, risk tolerance, investment timeframe, etc.