Canadians Withdrawing More From Their RRSPs For Everyday Expenses - BMO Study | General financial discussion | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
sp_Search Search
Advanced Search
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Search Search
Go to Bottom
No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Canadians Withdrawing More From Their RRSPs For Everyday Expenses - BMO Study
February 17, 2018
9:37 am
Top It Up
Member
Members (temp break)
Forum Posts: 1363
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline
Go to Top
1sp_Permalink sp_Print

Canadians Withdrawing More From Their RRSPs For Everyday Expenses - BMO Study

https://newsroom.bmo.com/2018-02-15-Canadians-Withdrawing-More-From-Their-RRSPs-For-Everyday-Expenses-BMO-Study

February 17, 2018
10:23 am
Trump
Member
Members
Forum Posts: 32
Member Since:
February 2, 2018
sp_UserOfflineSmall Offline
Go to Top
2sp_Permalink sp_Print

I just wonder:
Is this based on BMO clients only?
Why would one reveal the reason to withdraw?
What age groups did the withdrawals?

Not that I expect an answer but it seems this report could be misleading. No mention of withdrawals for reinvesting in TFSA.

February 17, 2018
10:29 am
Top It Up
Member
Members (temp break)
Forum Posts: 1363
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline
Go to Top
3sp_Permalink sp_Print

From the Link -

The Eighth BMO RRSP Survey was conducted by Pollara Strategic Insights via an online survey between December 21 and 28, 2017, with an online sample of 1,500 adult Canadians. Data has been weighted using the latest census information to be representative in terms of age, gender and region. The margin of error for a probability sample size of 1,500 is ± 2.5% 19 times out of 20.

Curious, why would you withdraw RRSP money to invest in a TFSA?

February 17, 2018
11:12 am
Trump
Member
Members
Forum Posts: 32
Member Since:
February 2, 2018
sp_UserOfflineSmall Offline
Go to Top
4sp_Permalink sp_Print

I am retired and don’t need my RRSP right now. Moving out RRSP and if you can stay in the lowest tax bracket and move into TFSA may minimize income tax when mandatory RRIF payments kick in. And will show lower income that will help obtaining discounts on income based programs.

See TFSA article here https://boomerandecho.com

February 17, 2018
2:05 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 3593
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline
Go to Top
5sp_EditHistory sp_Permalink sp_Print

Trump said
I am retired and don’t need my RRSP right now. Moving out RRSP and if you can stay in the lowest tax bracket and move into TFSA may minimize income tax when mandatory RRIF payments kick in. And will show lower income that will help obtaining discounts on income based programs.

See TFSA article here https://boomerandecho.com  

Indeed. It is all tax bracket related. There are a number of discussions on financial forums about doing this exact thing. It is very individual specific though. Someone who can retire at 60 and defer their CPP and OAS to age 70 likely then have low annual earnings and can take advantage of 'low taxed' RRSP withdrawals in that 10 year period.

February 17, 2018
2:42 pm
Top It Up
Member
Members (temp break)
Forum Posts: 1363
Member Since:
December 17, 2016
sp_UserOfflineSmall Offline
Go to Top
6sp_Permalink sp_Print

AltaRed said

It is very individual specific though. 

In the words of the late Jack Webster ... PRECISELY.

No permission to create posts
sp_Feed All RSS
Go to top

Please write your comments in the forum.