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.  |
yeah, the thing is, it depends...as Double F says!