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Saturday 05 September 2026 11:27:44 GMT
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WHICH ACCOUNT FIRST Withdrawal order matters at the lines. Between them, much less. The GIS deadline isn't 65. It's December 31st of the year you turn 63. The GIS timing correction is the most valuable thing in this video and almost nobody gets it right, including me previously. GIS runs on a July to June payment year and it is always priced off the calendar year before. So the GIS you receive from July 2026 to June 2027 is built on your 2025 return. Work that backwards and the first full year of GIS you ever collect is priced off the year you turned 64, not 65. And if your birthday falls between January and May, your first cheques reach back one year further still. The deadline that's safe for everybody is December 31st of the year you turn 63. There's also no do-over. Form ISP3041 lets Service Canada estimate your income rather than use last year's, but section 14 of the Old Age Security Act limits it to three things: employment income, business income, and pension income that stopped or dropped. A lump-sum RRSP withdrawal is none of them. You cannot file your way out of a meltdown that already happened. On the size of the prize. You'll hear that getting withdrawal order right is worth one to two percent a year, and it isn't. Morningstar's gamma research puts a figure on good retirement decisions, about 1.59 percent, but the withdrawal-sourcing component is 0.23. The largest single piece is spending flexibly, at 0.70. And the study excluded Roth accounts entirely because the authors judged most investors wouldn't hold much there, which means the single most important account in a Canadian ordering conversation isn't in the research at all. The honest Canadian answer is Doug Chandler's for the FP Canada Research Foundation. His conclusion: the value of clever RRIF drawdown is usually overstated, and in one of his cases it made people worse off. But in the case that mattered, a 75 year old on GIS with a $200,000 RRIF, draining it into a TFSA over four years cut her probability of running short from 54.1 percent to 37.7. One precision note on the TFSA. It's invisible to the federal income tests, so it never touches your OAS clawback, your GIS or your age amount. It is not invisible to everything. Quebec's Shelter Allowance counts a TFSA balance and specifically excludes RRSPs. ODSP and Ontario Works count it as a non-exempt liquid asset. Invisible to income tests, not to asset tests. Educational only, not advice. Gamma is US research.
WHICH ACCOUNT FIRST Withdrawal order matters at the lines. Between them, much less. The GIS deadline isn't 65. It's December 31st of the year you turn 63. The GIS timing correction is the most valuable thing in this video and almost nobody gets it right, including me previously. GIS runs on a July to June payment year and it is always priced off the calendar year before. So the GIS you receive from July 2026 to June 2027 is built on your 2025 return. Work that backwards and the first full year of GIS you ever collect is priced off the year you turned 64, not 65. And if your birthday falls between January and May, your first cheques reach back one year further still. The deadline that's safe for everybody is December 31st of the year you turn 63. There's also no do-over. Form ISP3041 lets Service Canada estimate your income rather than use last year's, but section 14 of the Old Age Security Act limits it to three things: employment income, business income, and pension income that stopped or dropped. A lump-sum RRSP withdrawal is none of them. You cannot file your way out of a meltdown that already happened. On the size of the prize. You'll hear that getting withdrawal order right is worth one to two percent a year, and it isn't. Morningstar's gamma research puts a figure on good retirement decisions, about 1.59 percent, but the withdrawal-sourcing component is 0.23. The largest single piece is spending flexibly, at 0.70. And the study excluded Roth accounts entirely because the authors judged most investors wouldn't hold much there, which means the single most important account in a Canadian ordering conversation isn't in the research at all. The honest Canadian answer is Doug Chandler's for the FP Canada Research Foundation. His conclusion: the value of clever RRIF drawdown is usually overstated, and in one of his cases it made people worse off. But in the case that mattered, a 75 year old on GIS with a $200,000 RRIF, draining it into a TFSA over four years cut her probability of running short from 54.1 percent to 37.7. One precision note on the TFSA. It's invisible to the federal income tests, so it never touches your OAS clawback, your GIS or your age amount. It is not invisible to everything. Quebec's Shelter Allowance counts a TFSA balance and specifically excludes RRSPs. ODSP and Ontario Works count it as a non-exempt liquid asset. Invisible to income tests, not to asset tests. Educational only, not advice. Gamma is US research.

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