Forum

Wealth Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Wealth Professional | 24 Apr 2015, 08:00 AM Agree 0
A decrease in the RRIF withdrawal rate may tempt advisors to show off their investment prowess at the expense of the most vulnerable investors in the marketplace.
  • Niki | 24 Apr 2015, 03:02 PM Agree 0
    There is a gap in which those who need to stick with the minimum at 7.38%, as they were planning, will then be charged the % tax on withdrawal above the new minimum, which is then collected by the government in advance. The other gap is with LIFs, and the minimum being the maximum when the return the year prior is less. Those expecting again the higher amount, may be dissapointed. The LIF, having the caviate of the maximum, has the cieling effect on amounts that can be withdrawn. Yes, more will be there if the client lives to 90 plus however most people do not make it that far. More in the LIFs and RRIFs latter in life will ensure the taxes could be higher in the final year, at the point of death, for the individual client with no living spouse or not married/common-law. So there are upsides however tere are downsides, which I am sure have been considered. A separate matter, is that more staying in the market may provide more stability in the market--although that is completely an indirect.
Post a reply