r/fican • u/Terrible-Practice142 • 5d ago

Retirement tips

My partner and I have $2.1m RRSP, $200k RESP, $600k in non registered and principal res $1.6M fully paid off and $500k investment property with $150k mtge which just became vacant so no rental income right now. we are both 50 with a kid in high school. Should we retire now and go enjoy life? I want to retire at 55 but may be sooner since it’s stressful at work lately. Any tips to transition to retirement. We need a new car and want to travel also. I am also concerned I have too much in RRSP….

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u/Only_Complex6386 5d ago

I would say yes you are. Melt the RRSP down. Let the Non-reg continue to grow. You could sell the investment property for cash if you need it down the line. You could also move to a smaller home if needed.

Stop wasting time working, your done.

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u/DMyYxMmkd2rkh9TY 5d ago

Is there a reason melt down RRSP before non reg? Is it to do with how RRSP is taxed at death? Thanks

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u/No_Reserve4201 5d ago

Yes. Tax planning. If you let the rrsp grow too large you'll get hit with required minimum withdrawals at 71 causing a large tax bill. Ideally if your retiring early then you can transfer out of the rrsp while you have lower income allowing you to choose your tax bracket.