RIF Considerations

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
Post Reply
kukucanuck
Contributor
Contributor
Posts: 121
Joined: 15 Apr 2011 14:12
Location: Ottawa

RIF Considerations

Post by kukucanuck »

I will be turning 71 in 2017 and will have to convert my RSP to RIF by the end of next year. My RSP is currently with TDDI. Portfolio is a mix of CAN and US REITs and Dividend stocks.

My objective is to withdraw minimum required under the legislation and to transfer the after tax proceeds to TFSA. Balance will go to my non- registered account. I have sufficient income to meet my normal spending needs, outside RSP.

I am seeking advice on the following considerations:

a. DRIP or not? Income is likely to match minimum withdrawal rate, more or less.
b. Withdraw monthly, quarterly or yearly? Are there fees for withdrawal?
c. Any other issues I should be aware of?

Thank you in advance for your input and advice.
gsp_
Veteran Contributor
Veteran Contributor
Posts: 2318
Joined: 12 Apr 2011 17:48
Location: Montreal

Re: RIF Considerations

Post by gsp_ »

a. This is personal preference more than anything in your RRIF. Related to question b and your own portfolio management style.

b. No fees at TDDI for RRIF withdrawals. You can choose monthly(mid or end of) and lump sum, perhaps quarterly is also available. There will be no tax withholding as long as you stick to the prescribed minimum withdrawal. The part that will fit in your TFSA is probably best withdrawn early in the year whereas the one that will go to unregistered is best left late.

c. Since you have no need for cash and are only withdrawing the minimum required you could entertain in kind withdrawals to TFSA and unregistered accounts. This assumes you have enough other income to cover the April tax consequences.
izzy
Veteran Contributor
Veteran Contributor
Posts: 3019
Joined: 19 Feb 2005 19:06
Location: Winnipeg MB

Re: RIF Considerations

Post by izzy »

You probably know this already but it bears repeating,if you have a younger spouse you can base your RRIF withdrawal on their age instead of your own and the payment qualifies for pension splitting.
"I disagree strongly with what you say, but I will defend to the death your right to say it."
kukucanuck
Contributor
Contributor
Posts: 121
Joined: 15 Apr 2011 14:12
Location: Ottawa

Re: RIF Considerations

Post by kukucanuck »

Thank you izzy and gsp!

The concept of in kind withdrawals to TFSA and unregistered accounts is very interesting. I was not aware of that.

I do not have a spouse so lower withdrawals is not an option.
Post Reply