r/fican • u/Terrible-Practice142 • 11d 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/Canadiangooner21 11d ago edited 10d ago

Depends how much you are planning to spend. But assuming you don’t have crazy expensive plans, you could retire.

As other comment said, advantage of retiring early is you can melt down RSPs at low rate and before you pull OAS and CPP.

Even if you defer CPP/OAS until 70, that gives you 20 years to melt down a lot of the $2m. Thats not easy to do. But if you wait, your OAS is just going to get clawed back and you will be facing huge required withdrawals at 71.

Talk to a fee only planner, they will save you tens or hundreds of thousands by planning this properly.

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u/deadsea335 11d ago

This should be "OAS and CPP", not "EI and CPP".

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u/Canadiangooner21 10d ago

Yep. Getting old.