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How to structure RRIFs
February 5, 2014
5:36 pm
Loonie
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So, you think that even considering the CRA pension credit for up to 2000, I would be better off with the 7yr GIC at 3.1 and a smaller payout? I must admit I find this kind of calculation quite difficult. I'm not bad at arithmetic, but I do find this challenging.
I think I'm OK with them only doing one withdrawal in 2014, as it will be long gone from BigBank, and the woman at Accelerate told me they wouldn't take anything out until 2015 (of her own volition).
Thanks for your help, SD.

February 5, 2014
5:37 pm
Loonie
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No, I don't need the cash. It was just an effort to reduce tax overall.

February 5, 2014
6:12 pm
Loonie
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SD, you are absolutely right. I just ran some numbers manually. It took me forever with my calculator, but I would be several hundred dollars ahead overall if I took the 7-yr GIC and reduced my annual withdrawals to about 1800 (using my exact figures), even allowing for the reduced benefit from the tax credit.

I am now thinking that I will go in to BigBank BEFORE I have this account moved to Accelerate and tell them to withdraw the amount I want withdrawn for 2014 (which will still be well over the mandatory minimum). I will have to do some more calculating to figure out exactly how much would be most beneficial overall. This may enable me to bump up my withdrawals over the 7 yrs at Accelerate so that they are closer to 2000, if it works out better this way in the end.

thanks again for helping me work this through.

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