Can You Save Too Much In Your RRSP?

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Can You Save Too Much In Your RRSP?

Рет қаралды 23,982

Күн бұрын

➡️Our financial planning services: www.parallelwe...
In this video we'll go through how you should handle your RRSP as you near retirement. Should you keep contributing? Can you save too much? We'll answer these questions in this video.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement plan on track.  You can learn more about our services at www.parallelwe...
Financial Resources I personally recommend:
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This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

Пікірлер: 41

@mikegillespie5218 Ай бұрын

I'm constantly impressed by the well-thought-out analysis you share on these videos. Thank you very much. I'm about 4-5 years from retirement and have asked my investment advisor to create a retirement plan for me - if it's as impressive as your tool I will be a happy man!

@MonaghanMLOUISE 23 күн бұрын

that is so great to hear, these days it seems like the only way to make some reasonable profit is to work with an expert. Imagine investing 200k and getting 5% return on investment, that is too low when some folks in the same market are racking up big amounts with the same capital.. make it make sense

@MarcelMcGowan 23 күн бұрын

Very true. despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately 950k that same year. In reality, all I was doing was getting professional advice

@McKnightCutkosky 23 күн бұрын

glad to have stumbled upon this comment, how can i participate in this? I sincerely aspire to establish a secure financial future and I am eager to participate. Who is the driving force behind your success?

@MarcelMcGowan 23 күн бұрын

Her name is 'Dianne Sarah Olson' just research the name. You'd find necessary details to work with a correspondence to set an appointment.

@iuordanmatkov261 23 күн бұрын

thanks for sharing , I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.

@johnnyboyvan Ай бұрын

Brett was so good as my financial planner and got me over 60k after tax and inflation. My heart surgery was a success and I am in recovery mode. 🙏

@garth217 Ай бұрын

Great news.

@ryanreid5859 Ай бұрын

Would be nice to see realistic incomes. Not many families make 250k a year

@derekcox6531 Ай бұрын

True that! But high earners benefit most from rrsp investment. Maybe the rest of us are better off with Tfsa investments.

@iany2448 Ай бұрын

When getting closer to retirement, impact of contributions to RRSP is far less than compounding. Also RRSP melt down could trigger OAS claw back. That is a headache.

@murraytown4 Ай бұрын

In this case, retire early and delay OAS to 70.

@James_48 Ай бұрын

@@murraytown4 this is the way

@harveythompson6951 Ай бұрын

OAS clawback is a good thing. I don't know why so many agonize about it.

@Patrick-pv9pe Ай бұрын

@@harveythompson6951 So true. Considering that OAS is only $8,560 per year and the threshold is only $90,997, I'd rather overachieve and have $300k+ per year of passive income than do a bunch of gymnastics to get the $8,560 OAS.

@harveythompson6951 Ай бұрын

@@Patrick-pv9pe True. I shake my head at that. It's an unaffordable program for the govt and should be clawed back entirely at half of what it is. Bolster GIS instead.

@wtspman Ай бұрын

What you do with the tax refund when you contribute to an RRSP needs to be factored into the equation. If you can use the refund for longterm gain, then it should be worthwhile, even if your tax bracket in retirement doesn’t change by much.

@johnwillock6787 Ай бұрын

I must have lived in the wrong area. Certainly I would think these salaries are in a % basis I don’t know about.

@Dom.Perignon123 Ай бұрын

I agree, as Adam has previously stated, those ~50K and up s/b contributing to rrsp and tfsa; esp if you’re single. You get the up front tax break, as well as the tax deferred growth that can be put towards future expenses. A slight tweak tho is that depending on salary and marginal tax rate, it may be prudent to NOT deduct the entire amount of contribution in that year; save deduction for higher income years. Use up your rsp and tfsa room to the max esp if you don’t have db pension. There’s never too much to contribute. If you cash out at lower tax bracket, you win but for those who have planned well, have had above avg salaries, the best will probably be same tax bracket; but that’s still a win. I dislike the cra so much, my backup plan is to transfer my rsp to my 25yr old trophy wife when I’m mid 80s... lol ;-)

@garth217 Ай бұрын

Definitely wait until your 80s for the 25 year old trophy wife. If done in your 40s you will be ruined economically by divorce.

@ianburton5624 Ай бұрын

I agree. I will be in a scenario where I will be getting a large lump sum payment from my employer. However I have enough contribution room accumulated that I can elect to not have tax withheld on it and put the whole amount in the RRSP. That should save a lot in tax in the long run as I will be withdrawing it in the next 5 - 15 years at a lower rate.

@garth217 Ай бұрын

Don't know about others but my investments took a substantial hit during Covid. As a result I stopped making RRSP contributions and just did TFSA. I also switched to high interest cash savings. As such my cash is now 85% of my RRSPs. That money was taxed already, so no future concerns. Ill be slow burning my RRSPs which will take me to 85. Ill take CPP at 63 at $1000/ month which will be applied to TFSA for 2 years which will maximize it before my Bridge Benefit of my pension drops. Then CPP will replace my Bridge drop. No change in lifestyle. OAS and RRSP withdrawals will be roughly an $18,000 increase of income ( before taxes) each year.

@robertdewalt8711 Ай бұрын

I stopped contributing to Spousal RRSP because she started collecting CPP, and I was worried that she might convert RRSP to RRIF, I stopped contributing so that enough time passes so that it doesn’t get taxed back to me.

@niceguy8305 10 күн бұрын

Your client report only works for less than 10% of the population. Let's do real numbers with real people wages. Like 50 to 60000 yearly incomes

@medwayhistory3101 Ай бұрын

50 yoa and single in Ontario; both tfsa and rrsp contribution maxed every year for years now. Defined benefit pension available now reduced or in full at age 55. Making approximately $120k annually. My plan is to continue maxing both registered accounts until pension and not touch the rrsp until meltdown after bridge payments from pension provider with the primary focus on maxing tfsa day one of each calendar year. My debt is zero beyond mortgage at 1.86% that matures in 2025. I plan to clear that $50k mortgage balance off the books instead of renewing at a higher interest rate and doubling down on investing in tfsa and non-reg. depending on interest rates and state of the stock market. Am I correct In maxing the rrsp for the five years before retirement? When or is it worth using the $2k over-contribution one-time buffer rrsp buffer? Thank you for the presentation!

@James_48 Ай бұрын

If I were you, I would start modelling how much tax I would pay in retirement using income from all sources. As you indicated, you will have available income from RSP, pension, TFSA, and of course, CPP and OAS. I would be wary that the taxation on my income from all those sources would put me potentially into a higher tax bracket than what I am in currently. If that’s the case RSP contributions might not be my best choice. It’s all about the math, in my opinion, and ensuring you are making accurate predictions of future taxation. I would include in my future tax calculations, any potential income splitting available to me to improve the accuracy.

@northernliving4710 Ай бұрын

My question is in this financial landscape I don't know many people who have 500k in rrsp let alone 1.8 million. This discussion is the 3% of society.

@James_48 Ай бұрын

I’m not so sure. As an example, if I take someone with a $60,000 salary starting at age 25. If they were to invest $10,000 per year (that’s less than the 18% maximum possible ) for the next 30 years, at age 55 they would end up with an RSP of roughly $864,000, this is based on a 6% average annual return. I believe this is certainly possible for more than 3% of working Canadians.

@harveythompson6951 Ай бұрын

@@James_48 Very few contribute to their maximum allowable

@James_48 Ай бұрын

@@harveythompson6951 I don't know that for a fact, but that is the exact reason I did not increase the annual contribution amount over the 30 years. It was meant only for illustrative purposes - that accumulating a $500k RSP is not that difficult with annual contributions to a reasonable index fund(s). The same math works from age 35-65. I would agree that starting at age 25 might be tough. If the investor would only contribute $6,000 per year over the 30 years, at 6% the result would be $500k. I would suggest that is pretty decent.

@therechargeroom8646 Ай бұрын

Hard to relate to high incomes like in this example shows.

@aakashchokshi2180 Ай бұрын

I bought my property in March, 2024 as a first time home buyer and used my 35k limit. But my spouse limit was not used so can I contribute now and withdraw the same after 3 months i.e. after 90 days? Thank you in advance.

@Bn-fd9kp Ай бұрын

Defer tax with a RRSP then an overspending Socialist Government will raise taxes so there is no savings and in fact you lose in more ways than one.

@alexkuhnert6856 Ай бұрын

There are many articles in the financial press showing that RRSP above $800K is too much. Why? Above this you start large OAS clawbacks. So someone w $4 Million will never get OAS. At that RRSP level you are in the top 1 % of the wealth bracket or higher...which are not the viewers of this channel.

@harveythompson6951 Ай бұрын

I don't think anyone with millions cares about OAS clawback.

@martik778 Ай бұрын

Damn, I should donate my excess 3.2 million just to get that 8400 in OAS!!!!

@cksh4182 Ай бұрын

if I had 1 million in RSP and 1 million in my business investment acc... which should i withdraw first typically?

@James_48 Ай бұрын

If I were in this situation, I would seek advice from a qualified tax accountant. Mostly, my focus would be on taxation at death and ensuring I’m doing whatever I can to minimize tax to my estate. I hope to live a long time also and there are probably many nuances to consider in this situation with respect to government pensions, and any other income sources you expect to utilize in retirement. And while I am dead set against over utilizing life insurance, it may be useful to look into life insurance as a means of protecting against potential future taxes in your estate.

@master15951 Ай бұрын

RRSP

@brucegarrod8674 Ай бұрын

Pony up the reasonable fee Parallel Wealth charges and they will map it out for you.

@jimchen4662 Ай бұрын

I know the numbers in this video are hypothetical. But no investment income (@15:55 of this video) in the first multiple years when the couple combined income is $250,000? To me, either the assumed numbers in this video are too unrealistic or the couple has no planning of saving at all.