My retirement plan...would like to read feedbacks!
I'm 51 , next year will be fully retired.
My wife 42, working income 200K+.
Assets: in total around 1.5M , split 54% equities, 46% fixed income. my SRRSP, 2 RRSPs(my and wife's), 2 TFSAs, 2 LIRAs, small non-reg (my wife). No debt. Own small detached house in Mississauga.
I'm planning to convert my SRRSP to SRRIF in 2019 (so should start process this year) and maybe in 2020 convert my ind RRSP to RRIF, in 4 years to break up my LIRA (I think I can 50% of it to transfer to RRIF, right?).
I want to switch SRRSP to SRRIF, because:
- no attribution rules on SRRIFs, if I take minimum payment (and I intend to take only minimum payments)
- proceeds from SRRIF payments to invest into TFSA and back to SRRSP, thus my wife gonna get 50% tax break (she's obvioulsy in the highest tax bracket).
- deplete value of registered accounts, to avoid higher taxation when I will be in my 60's and start getting OAS and CPP.
- avoid possible OAS clawback.
Starting 2019, my only taxable income will come from HISA/GIC and will be around 9-12K (depends on promo rates). SRRIF payments will be around 7.5K. So, in the worst case, my average tax will be 8.76 %.
How is my plan sound? Any suggestions and comments are welcome!
Some questions, may be you know the answer...
1. Can I make partial transfer from SRRSP to SRRIF? (the problem is that I need to pay admin fee if my SRRSP will have balance less than 25K)
2. Can my wife continue to contribute into SRRSP when SRRIF will be open?
3. In several years can I again transfer portion of SRRSP to SRRIF (same ones)
4. Can I withdraw funds first from CAD cash and if not enough from US cash portion of SRRIF? (we are in CIBC IE).
P.S. i don't have DB pension, my wife has. if she continue working until age 55 (I hope very much she won't ), her income will be estimated 24K (have no idea how to calculate est income if she retires earlier)