Quote:
Originally Posted by Buckhead
No kidding. And that is what I originally stated.
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Sorry, you are correct and you were talking about standard RIFS so your post was accurate, I misread what you were saying. Entirely my fault.. I realised that after the edit period was elapsed, that is why I clarified my earlier statement.
RIFs and LRIFs are similar but not the same. What I was trying to get at was if you convert an RRSP to a RIF, even at 50, you now have a minimum withdrawal you have to take out. That min increase every year after that.
(At age 50 it is 2.50% min, and max withdrawal for LRIF is between 4.34 and 6.27% depending on what Prov or Fed legislation it falls under. At 71 your min withdrawal has grown to 5.28%).
Where I was going with all that is you need to take those min and maximums into account when determining returns needed as well as impact of RRSP/RIF/LRIF withdrawals on your tax situation.