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

Sample Strategy For Melting Down Your RRSP #shorts

12 Jan 2024 · 1 min

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Richard Canfield walks through how Peter converts a $300,000 RRSP into insurance. He withdraws $50,000 yearly for six years, pays $25,000 in tax, and uses the rest for premiums. The projected death benefit reaches $997,334 by age 100, far exceeding the $150,000 total cost.

Questions this video answers

$300,000

$50,000 per year

Six years

$25,000

$25,050

Chapters

Now, just to kind of summarize, on Peter's 300,000 RSP plan, remember, it was 50,000 that he was withdrawing each year at a length of time, six years. So he's paid 25,000 in tax, and the premiums that he's funded is 25,050. Went to go pay the liability that the government has set up rules to pay them for. Fine. And then premiums funded now in a different location. Maybe Peter doesn't live to age 100. But I'm just showing you from the contractual performance obligation that is required from the insurance company under that specific estimated scenario, it's 997,334. And a death benefit 997334. If we look at the amount of money that went in 150,000 compared to the projected value with reasonably strong probability criteria of by age 100 because it's contractual to get to 997334, I think that more than covers his $150,000 tax bill.