Quote:
Originally Posted by bizaro86
I know you know this, but the other potential advantage to de-registering RRSP funds is that while the compounding isn't tax deferred it is likely taxed at lower dividend/capital gains rates. Now, it obviously doesn't make sense to de-register large amounts all at once if that's going to push you up the tax brackets. But for someone retiring even a bit early who is not going to have CPP/OAS right away I think the math for taking larger RRSP withdrawals early in retirement is potentially compelling. I went through this exercise with my father recently, and the value of deferring CPP/OAS payments and taking 100% of their cash needs as RRSP withdrawals instead for the first few years was really significant. Obviously it depends on return/life span assumptions.
Tl;dr the decisions around de-accumulation are complicated - it probably makes sense to call Slava or someone like him and get professional help.  |
Did you factor in the pension tax credit and pension splitting of a RRIF (if married and both technically in lower brackets?). If one spouse's pension is substantially higher than the other, doing that aim to bring the balances closer over time is another strategy to consider.
But as always, "it depends".