Again, an RRSP is a type of tax-deferred account, and an RRIF is a type of Income account that an RRSP holding must be converted to by the age of 71. But nothing states you must convert your entire RRSP account holdings to an RRIF account holding.
So, take a 500K RRSP account, open an RRIF account and move 100K from RRSP to RRIF at 55 (or whenever), holding the same funds/stocks/ETFs the big banker didn't sell you, but you were clever and bought yourself with knowledge. At 55, take out a $2850 minimum (2.85%, much lower than the 5-8+% annual growth) from RRIF and pay income tax on it. Keep the other 400K in RRSP, growing tax deferred till you need it.
Sure, at 71 it'll be so much I have to fly to Mexico twice a year. Problem is?
Last edited by: heckler on May 5, 2023, 6:42 p.m., edited 2 times in total.