The Canada Pension Plan (CPP) is one of your most valuable assets in retirement But most people aren't optimizing CPP to its full potential This can mean hundreds of thousands of dollars in lost benefits Here is a breakdown of how to get the most out of CPP:

Melting down your RRSP isn't always the smart move Take money out early that you don't spend, and once your TFSA is full it lands in a taxable account, where its growth is no longer sheltered from tax. Die at 78, and it might save you some tax. Live to 94, and the lost growth can outgrow any tax you saved.

Most people think tax planning means having an accountant prepare their tax return. That's tax filing. It records what has already happened. Tax planning means looking forward and planning strategies that can save you taxes for the rest of your life

"The government's broke. I'm not counting on CPP." CPP doesn't come out of the government's budget It's paid from the contributions of people still working, plus a fund of over $860 billion invested by CPP Investments That fund is kept separate from government money, and it can only be used for CPP

An easy way for married couples to minimize taxes: have the higher-income spouse pay as many of the family expenses as possible. That way, the lower-income spouse can invest more of their own savings, and any income earned on those investments is taxed at their lower rate

People who complain about paying taxes on RRSP/RRIF withdrawals usually also forget the massive advantages they got along the way. A tax deduction on every contribution, often at a high rate. Decades of growth without paying a cent of tax on it.

Retiring doesn't automatically mean your portfolio should get more conservative. Retire at 60 and the money may have to last 30 years or more Move too much into bonds and cash, and you swap the risk of a market drop for the risk of inflation eating your spending power.

On your TFSA, name your spouse as successor holder, not beneficiary. As successor holder, they take over the account as it is, and it keeps growing tax-free. As beneficiary, the account is closed and paid out tax-free. But it can't be recontributed to your TFSA if you don't have the contribution room

"Should I wait for it to recover?" is the wrong question to ask about a stock that's down. Ask this instead: if I had the same amount in cash today, would I buy this stock? If the answer is no, the only thing keeping you in it is the price you paid.

At the roughly 1% a year that full-service advice typically costs in Canada, a $1M portfolio pays around $10,000 a year in fees Here's what a lot of people are getting for that: one meeting a year a call at RRSP time an expensive portfolio, that's quietly trailed the market for a decade an advisor who has never once told you not to do something no plan (a statement is not a plan) If this sounds familiar, it's worth getting a second look

If your spouse is younger than you, base your RRIF minimum withdrawal on their age instead of your own. The minimum comes out smaller, so if it's money you weren't going to spend anyway, less of it gets forced onto your tax return and the rest keeps growing. You make that election while opening the account, and it can't be changed for that RRIF afterwards.

A common way to waste a TFSA in retirement is to keep it in cash. It is the only account you own where the growth is never taxed, the withdrawals never count as income, and nobody ever forces you to take money out. Then it gets used as the safe account, sitting in cash and GICs, while the money that is actually meant to grow for the next thirty years sits in a taxable account being taxed every year.