Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Melting Down RRSPs the Smart Way

19 Feb 2025 · 1 min

Watch on YouTube

0:45

This YouTube interview features Richard Canfield speaking with a guest (Speaker A) about personal financial planning choices. Speaker A, a cancer survivor, describes moving RRSP holdings from equities into cash, buying a life-insurance policy on his healthy wife because his own insurability was uncertain, and ‘melting down’ RRSP withdrawals between both spouses to minimize taxes and pay insurance premiums.

Chapters

What led to how you started to package your own program together to begin this process for yourself and your family?
I'm a cancer survivor, so I wasn't sure if I would be insurable. I honestly didn't want to wait. I wanted to get my RSPs out of the market. I took them out of equities and put them into a cash account. And then I thought, well, my wife is healthy. I want to put a policy in place on her and direct our RRSP holdings under her. I'll worry about myself down the road. That's what we did. Now, our RRSP portfolio is basically. I contributed all. I have some Sposal in there and some under my name. When you withdraw RRSPs, you have to be taxed. It didn't make a lot of sense for me to pull out of mine and have this huge tax bill. I thought, well, let's take a little bit out of yours. Take a little bit out of mine. We'll melt it down like that. That way we're paying minimal taxes and we'll be able to pay our premiums.