{"id":7055480,"date":"2026-09-03T05:15:34","date_gmt":"2026-09-03T05:15:34","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/common-retirement-drawdown-orders-my-own-advisor\/"},"modified":"2026-09-03T05:15:34","modified_gmt":"2026-09-03T05:15:34","slug":"common-retirement-drawdown-orders-my-own-advisor","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7055480","title":{"rendered":"Common Retirement Drawdown Orders – My Own Advisor"},"content":{"rendered":"


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Common Retirement Drawdown Orders<\/strong><\/h2>\n

If you\u2019ve been fortunate enough to amass some assets for retirement, well, this post is for you \u2013 here some common retirement drawdown orders to consider from my perspective and more importantly, why.<\/em><\/p>\n

Inspired by reader emails and navigating my own early retirement income planning \u2013 let\u2019s get right into it.\u00a0<\/p>\n

First, let\u2019s look at some potential or common retirement components:<\/p>\n

Retirees might have the following income sources:<\/p>\n

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  1. Corporate investments<\/li>\n
  2. Workplace Defined Benefit (DB) pension<\/li>\n
  3. Non-registered accounts<\/li>\n
  4. Registered Retirement Savings Plans (RRSPs) \/ Locked-In Retirement Accounts (LIRAs)<\/li>\n
  5. Tax-Free Savings Accounts (TFSAs)<\/li>\n
  6. Canada Pension Plan\/Quebec Pension Plan (CPP\/QPP)<\/li>\n
  7. Old Age Security (OAS).<\/li>\n<\/ol>\n

    What to spend first?\u00a0<\/span>Why?<\/span><\/em><\/p>\n

    Image courtesy of\u00a0The Behavior Gap \u2013 Carl Richards:<\/em><\/p>\n

    \"Common\"Common<\/p>\n

    I believe those answers depend on your primary objectives once retired which may or may always involve taxation.<\/span><\/p>\n

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    • Manage risk \u2013 <\/strong>you want guaranteed income security as much as possible?<\/li>\n
    • Minimize tax upfront \u2013 <\/strong>pay as little tax as possible in the early years, defer tax into older age?<\/li>\n
    • Grow the capital \u2013 <\/strong>\u2019nuff said.<\/li>\n
    • Maximize the estate<\/strong> \u2013 do you want to leave a legacy?<\/li>\n<\/ul>\n

      Here are some options in more detail!<\/p>\n

      Manage risk:\u00a0<\/strong><\/h3>\n
      \n\n\n\n\n
      Withdraw first<\/td>\nCorporate portfolio and personal investments<\/td>\nDrawing assets from your corporation first may make sense, including non-registered assets then RRSPs then TFSAs.<\/td>\n<\/tr>\n
      Withdraw last<\/td>\nCPP\/QPP\/OAS<\/td>\nDeferring government inflation-protected benefits until age 70 will preserve inflation-fighting power \u2013 certainly a good idea if you have a DB pension.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

      Minimize tax upfront:<\/strong><\/h3>\n
      \n\n\n\n\n
      Withdraw first<\/td>\nCorporate portfolio and non-registered assets<\/td>\nNon-registered investments can be strategically sold for capital gains, with or without any DB pension.<\/td>\n<\/tr>\n
      Withdraw last<\/td>\nRRSP\/RRIF, LIRA to Life Income Fund (LIF) then TFSA<\/td>\nDeferring your RRSP\/RRIF will defer taxation. TFSAs can be withdrawn last.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

      Grow the capital:\u00a0<\/strong><\/h3>\n
      \n\n\n\n\n
      Withdraw first<\/td>\nCPP\/QPP\/OAS<\/td>\nYes, you can can start taking CPP\/QPP retirement benefits as early as age 60 (though your lifetime benefit will be smaller) and you can take OAS at age 65 \u2013 which is pretty standard.\u00a0This may allow you to grow the capital inside RRSPs\/RRIFs or TFSAs.<\/td>\n<\/tr>\n
      Withdraw last<\/td>\nTFSA<\/td>\nNeedless to say it\u2019s great to maximize tax-free growth via TFSAs.\u00a0<\/p>\n

      \u201cThe first rule of compounding is to never interrupt it unnecessarily.\u201d<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

      Maximize the estate:<\/strong><\/h3>\n
      \n\n\n\n\n
      Withdraw first<\/td>\nAll personal investment assets, except TFSA<\/td>\nMoney left in an RRSP\/RRIF at death is usually fully taxable in an estate. You should enjoy the money you\u2019ve earned while you are alive and if you want to leave a legacy, leave other assets like your primary home and TFSAs to beneficiaries.<\/td>\n<\/tr>\n
      Withdraw last<\/td>\nTFSA<\/td>\nDraw this last account last since TFSA assets can continue to grow with no future tax implication to you or your estate!<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

      A big reminder!<\/a><\/p>\n

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      Watch out for RRSP and RRIF taxation<\/a><\/p>\n<\/blockquote>\n