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Transcript: A question we’re commonly asked is, is it possible to drastically reduce taxes in retirement or even eliminate them? It is possible, but you must start planning before you retire. Many people don’t realize that when you contribute to a Registered Retirement Savings Plan to accumulate savings, and then begin drawing out money through the Registered Retirement Income Fund, it is fully taxed upon withdrawal. So, the key is to diversify your retirement income. You can do that by opening a Tax Free Savings Account that allows savings to accumulate tax free up to certain limits, while you’re still working. Once you’re retired, it’s all about monitoring your adjusted gross income to control your tax bracket. You can limit the amount of taxable income you need to withdraw by pulling income from your tax-free accounts. Also, by withdrawing from non-taxable accounts, instead of selling investments that trigger taxable income, you can reduce the taxable income that can affect your OAS benefits. At about $75,000 taxable income your OAS benefits start to get clawed back and are eliminated at about $130,000 taxable. To find out how you can reduce your taxes in your retirement years, call us or visit our website today.