Our mortgage is paid off, TFSAs are maxed, we have defined benefit pension plans. The wife can retire next year if she wants at about 50% of her current salary. She plans on doing so. Our spending is significantly less than what we make, so we can afford this. But in our last year of prime earning, what should we do? RRSP? Taxable accounts?
Right now she is making a bit more than $100K, and I make about $140K. Prime earning years indeed.
My thought was to plow money into her RRSP and then take it out at the lower tax rate when she is on pension. Would appreciate input.
Here has been our progress since I found this place:
May 2018 Dec 2019 June 2020
Mortgage ($28,700) $ 0 $0
Me RRSP $ 0 $ 0 $0
TFSA $ 0 $71,700 $103,000
Spouse RRSP $ 0 $ 0 $0
TFSA $ 0 $37,500 $72,000
Kid RESP $ 36,000 $46,000 $52,000
Total: $7,300 $155,200 $228,000
I did well on my TFSA - bought some individual stocks that did well last year and then sold everything before the big crash and bought back in when things were a bit lower. Yeah yeah, timing markets I know. Almost gave myself an ulcer doing it and just got lucky. I wouldn't bother again. Obviously didn't time it perfectly, but still, made some good progress and I'm up from where I was at the market peak.
