querterly tax insallments

[bluebelle]

between being a good saver, working a few years too long and really good returns the last few years, we have "too much" saved for retirement.

I'm curious as to whether most folks here structure their income streams to deduct sufficient taxes at source or pay in quarterly installments.   During my working years, I usually got back a refund, much to my annoyance, since it meant the government got to use our money interest free.   Now that we're drawing down funds, it's pretty much a given that we'll have to pay taxes every year unless I have more deducted at source.   We're only in year 3 of retirement, and so far, we haven't been drawing as much as we could from our funds, so haven't been hit with a quarterly installment requirement.   Looking at our plan, if we don't withdraw more every year, we're going to leave a larger pile of money when we die than we want to.  (I know, BIG problem to have).
I think I'd prefer quarterly installments, but for harmony in the home, may have more deducted at source my spouse won't notice the deductions but will go off on rants when he sees large quarterly payments.
TL;DR - do you pay quarterly installments or have more tax deducted at source?

[Missy B]

So far as I know, having taxes 'deducted at source' for mutual fund redemptions isn't an option unless its legally required as a withholding tax (ie for non-residents). It's not like employment income.
Possibly you could get a financial planner who will both do your taxes and submit funds on your behalf, but for the extra fees I'd rather send hubby for counselling to help him accept reality instead of arguing with it.

[Metalcat]

Your spouse gets upset by tax installments??

[rocketpj]

Just set up an automatic payment every month if it makes it easier for you.  Make it weekly if it helps your spouse not get upset about a 'big number'.

[scottish]

So far i've just been paying the quarterly installments the CRA asks for.

I had a big rebalancing in the non-registered account this year (US equities were way ahead of international and Canadian), and this has created a large capital gain.    Since the gain won't be repeated in 2026, I'll have to decide how to deal with the larger quarterly installments next year.

It's just a thought - long term care expenses are going to be substantial.   MIL's place is over 10K CAD per month.  Demographics are probably going to drive prices up over the next 2 decades.    Having extra money isn't a bad thing, especially if dementia runs in your family.

[RetiredAt63]

I also can't have everything deducted at source.  I don't like quarterly payments simply because isn't even every month, so I just take what CRA thinks I should pay and do 8 even automatic payments, May to December.

[Mighty Eyebrows]

Luckily, Mustachians can divide by numbers other than the number 12! The number 4 is a great number and no worse than the number 12.

Also, self-aware Mustachians aren't disturbed by having to budget over different parts of the year than regular working people. They also understand that paying out of pocket for instalments is exactly the same as having the money deducted at source, and so aren't bothered by having to make a simple bank transfer 4 times per year. Isn't it great to be a Mustachian?