The DIY Retirement Saver - Why Going It Alone Isn't Always Enough

Many Canadians take a do-it-yourself approach to retirement, believing that with regular RRSP contributions and a few index funds, they'll be fine. It’s an understandable approach — simple, low-cost, and hands-off.

But here's the truth: while this strategy can work, it often falls short of optimizing outcomes.

Pros:

• Low fees (especially with ETFs or robo-advisors)

• Full control over where your money goes

• Flexibility in adjusting investments

Cons:

• No professional guidance on when or how to convert RRSPs into income

• Tax inefficiencies — such as withdrawing from the wrong account first

• Missed government benefits (e.g. OAS clawbacks)

• Inaccurate projections due to poor assumptions about inflation, life expectancy, or spending needs

For example, many DIY investors don't realize that drawing from RRSPs too late can lead to high taxable income at age 72 when RRIF withdrawals become mandatory, pushing them into higher tax brackets and reducing OAS eligibility.

A financial advisor can help:

• Structure withdrawals for tax efficiency

• Coordinate TFSA, RRSP, and non-registered accounts

• Plan for healthcare, inflation, and legacy goals

A solid portfolio is just the start — a well-structured drawdown strategy is where real value is created.

Retirement Planning

Book Now