Dividends vs Other Income/ROC Question
Hi All,
I've been lurking this subreddit for quite some time. I have a family member that is retiring next year and will be forced to start withdrawing from their RRSP/RRIF which they won't need for living expenses. My first thought is to obviously max out TFSA yearly with the money but outside of that $7k they want to invest the rest of the money into dividend stocks for passive income in a non-registered account.
From my own experience it seems that the big banks in Canada and ENB would be taxed as dividends. Where as things like REITS would be "other income".
I'd like some recommendations for dividend stocks/ETFs that are taxed as dividends and not other income or return on capital if you'd be so kind. Thanks all.
EDIT - The person is retiring at 72 and mandatory withdrawals are kicking in, not the biggest RRSP but a significant amount, it's approximately 1mill, so will be around ~$40k/year coming out.