Canadian Mail Forwarding
I am curious as to how other Canadian Snowbirds are receiving their mail while away in the United States. We stay in Florida for six months. As it exists now I get my neighbor to forward my mail in s...
Forum Discussion
"Do they not withhold tax as you withdraw?"
Who is they?
If it is my TD Self Management people, no, "THEY" are not concerned about that. In a RIF the holder be it TD, CIBC, Royal or whoever is tasked to be responsible for holding the RIF is duty bound to have you as the owner of the RIF to have a % taken out every year it is shown in your T4RIF, no taxes are withheld at that time.
All my investments are self managed, I do not want 2 or 3% taken for their fees which in most cases are redundant, keep these as they in the long term add up to a significant amount of money....in my pocket....not theirs. That is the reason for self management.
You could make a case about withdrawing all your RIF before age 71 but if you have retirement income from Pensions, Dividends, Trust Income, CPP & OAS and might be still working into your late 60's I think it might be a wash, of course in certain instances it might be beneficial or it might not every case is different. Their (CRA) plan is to have all your assets in the RIF Drained by age 90.
Actually for younger people starting out it is (I think) in some if not all instances better to use the TFSA to shelter income for longer term use rather than an RRSP. Actually I take out the amount from the RIF that by law I have to, pay the taxes & put what is left into my TFSA in good long term stocks....that's my plan yours might be different who knows?
If you after 40 or more years of using an RRSP (remember it started in 1957 under John Diefenbaker) you might have a significant amount in it, still working in to your 60's getting the OAS & the CPP, do you think you could draw down the RIF in time to avoid the "dreaded" claw back? Anyway the claw back if total is no big thing and everyone worries about it needlessly. What is six grand....peanuts in the big scheme of things!
Anyway we are going down the dreaded "Rat hole" and missing the subject of "Forwarding" one's mail when Snow birding. I may be guilty of that myself....sorry, lets get back on track.
Who is they?
If it is my TD Self Management people, no, "THEY" are not concerned about that. In a RIF the holder be it TD, CIBC, Royal or whoever is tasked to be responsible for holding the RIF is duty bound to have you as the owner of the RIF to have a % taken out every year it is shown in your T4RIF, no taxes are withheld at that time.
All my investments are self managed, I do not want 2 or 3% taken for their fees which in most cases are redundant, keep these as they in the long term add up to a significant amount of money....in my pocket....not theirs. That is the reason for self management.
You could make a case about withdrawing all your RIF before age 71 but if you have retirement income from Pensions, Dividends, Trust Income, CPP & OAS and might be still working into your late 60's I think it might be a wash, of course in certain instances it might be beneficial or it might not every case is different. Their (CRA) plan is to have all your assets in the RIF Drained by age 90.
Actually for younger people starting out it is (I think) in some if not all instances better to use the TFSA to shelter income for longer term use rather than an RRSP. Actually I take out the amount from the RIF that by law I have to, pay the taxes & put what is left into my TFSA in good long term stocks....that's my plan yours might be different who knows?
If you after 40 or more years of using an RRSP (remember it started in 1957 under John Diefenbaker) you might have a significant amount in it, still working in to your 60's getting the OAS & the CPP, do you think you could draw down the RIF in time to avoid the "dreaded" claw back? Anyway the claw back if total is no big thing and everyone worries about it needlessly. What is six grand....peanuts in the big scheme of things!
Anyway we are going down the dreaded "Rat hole" and missing the subject of "Forwarding" one's mail when Snow birding. I may be guilty of that myself....sorry, lets get back on track.
