Writing to see others that have used the PWL Retirement calculator can answer my question.
The tool I am referencing is https://research-tools.pwlcapital.com/research/retirement
I had put in my that I would want $55,000 spending in retirement and its saying the cashflow in my first year would look like this.
| Withdrawals | |
|---|---|
| Personal Taxable Redemption | $55,091 |
| RRIF Withdrawals | $0 |
| TFSA Withdrawals | $0 |
| - Taxes Owed | -$91 |
| - CPP Contributions | -$0 |
| - EI Contributions | -$0 |
| - DB Pension Contributions | -$0 |
| - TFSA Contributions | -$0 |
| - RRSP Contributions | -$0 |
| - Personal Taxable Account Contributions/Re-investments | -$0 |
| = Spending | $55,000 |
How would it be possible to get $55,000 from generating $55,091 in capital gains? Or am i reading this wrong.
Is it because I will generate $55,091 (Market Value - Book Cost) but will only pay taxes on $27,500 (50% tax inclusion)? But from a spending perspective I will have $55,000 to spend?
u/CADhouse — 15 days ago