Friday, August 14, 2020

Big Finance Day!

In Canada starting at age 71 we must start drawing down the money we have squirreled away in Registered Retirement Savings Plans (RRSP). These funds must be converted to Registered Retirement Income Funds (RRIF) and depending on your age, you are required to withdraw a minimum amount every year. At my age (75) I had to take out approximately 6% (still substantially less than the fund earned last year) which becomes taxable income. This year because of COVID we were allowed to take a reduced amount which I took advantage of and my investment company allowed me to delay my withdrawal from my agreed upon date of April to August which I also chose to do. A wise decision it turns out because my fund has now recovered everything it lost during the initial COVID financial pandemic meltdown. For once I did the right thing. My RRIF payment was deposited in my Credit Union this morning!

I also delayed the payment of my Income Tax and my Property Taxes, both delays were allowed penalty free again due to the COVID-19 situation. Today I paid both and discovered I still had +/- $1500 left over! Oh what to do with it? Save it for airfare to visit my friends in Mexico when the pandemic is over! YES! Monterrey and Merida are in my future!

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11 comments:

  1. Nothing makes me happier than a socialist who loves capitalism. haha

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    1. We are not that rare John! Most of the best private (Union) pension plans are run by dedicated Socialists. As my friend David Lewis often said, "There ain't nothin' too good for the worker!"

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  2. Had to self directed RRSP to a RRIF this year. Minimum payment next year but I draw money out every year anyhow. My mutual funds have come back to normal as well.

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    1. Should have said "convert my" RRSP to a RRIF.

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    2. Can you self direct a RRIF?

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    3. Yep! Same rules apply as a Self directed RRSP.

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    4. Yep..just agreed to a minimum payment withdrawal in December of each year. That way I can withdraw what I want before that date. Set the self directed RRSP up through Royal Bank Action Direct many years ago using advice from Gordon Pape and for the most part it's done well.

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  3. And San Miguel please! Chris & Juan can time a visit here then too!

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  4. Yes, add San Miguel to that list of places to visit! How nice to have extra $$. I gave my stimulus check of $1200USD to my son who has not had any income since January (he is in real estate)in SMA. With two kids and all those expenses, it has been a rough six months with COVID added to it all. Happy to read some good news!

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