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Wall Street Pauses as Fed Meeting Looms: Futures Hold Steady

U.S. stock futures were little changed on Tuesday as investors awaited the start of the Federal Reserve’s final policy meeting of the year. The Dow Jones Industrial Average, S&P 500, and Nasdaq futures all hovered near flat, reflecting a cautious mood across Wall Street. The Fed is widely expected to keep interest rates unchanged, but traders are focused on Chair Jerome Powell’s comments and the central bank’s updated economic projections. Markets are looking for clues on when rate cuts might begin in 2024, with inflation cooling but still above the Fed’s long-term target. Recent gains in equities have been fueled by optimism that the Fed’s tightening cycle is over, yet uncertainty remains about how quickly monetary policy will shift toward easing. Until then, investors appear content to hold their positions, waiting for clearer signals from the Fed before making bold moves.
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Preserving a Nest Egg: Strategic RRSP Withdrawals Explained



When retirement arrives, the challenge shifts from saving money to spending it wisely. For someone sitting on nearly $3 million in savings, the key question is how to draw down their RRSP in a way that minimizes taxes while ensuring her wealth supports her lifestyle for decades.

1. Start Withdrawals Before Age 71

  • RRSPs must be converted to a RRIF (Registered Retirement Income Fund) by age 71.
  • If someone waits until then, mandatory minimum withdrawals could push her into the highest tax brackets.
  • By starting withdrawals earlier, she can smooth out her taxable income over time, reducing the risk of large tax bills later.

2. Delay CPP and OAS

  • Delaying Canada Pension Plan (CPP) and Old Age Security (OAS) until age 70 increases benefits significantly.
  • This allows someone to rely more on RRSP withdrawals in their 60s, keeping taxable income balanced and avoiding OAS clawbacks.

3. Use a “RRSP Meltdown” Strategy

  • Gradually withdraw RRSP funds while offsetting taxes with interest deductions from investment loans or prescribed annuities.
  • This reduces RRSP balances before mandatory RRIF withdrawals kick in, lowering taxable income in later years.

4. Maximize TFSA Contributions

  • Withdraw from RRSPs and re-contribute to a Tax-Free Savings Account (TFSA).
  • Growth inside a TFSA is tax-free, and withdrawals don’t affect government benefits.

5. Leverage Pension Income Splitting

  • If someone has a spouse, splitting RRIF income can reduce overall household taxes.
  • This strategy ensures both partners stay in lower tax brackets.

6. Sequence Withdrawals Wisely

  • General rule: Non-registered accounts first, then RRSP/RRIF, then TFSA last.
  • This order allows taxable accounts to be drawn down while tax-sheltered accounts continue to grow.
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