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There is a fringe benefit to be had from selling the rental properties. If they sell the properties and then invest as much of the proceeds as they can in RRSPs and TFSAs, they will see a drop in nominal taxable income. The remaining income and the proceeds of sale can be directed to sheltered accounts. With less taxable income, they may be able to obtain a larger sum from the Canada Child Benefit, Winkelmolen says.

Emily and Robbie have $38,000 in their family RESP. Though they have suspended contributions, they want to be able to provide post-secondary support for their three children currently ages 12, 6 and 3. That’s a total of $120,000 for four years of post-secondary education. If they add $2,000 per child per year to education fund to each child’s age 17, perhaps by cuts in travel and restaurants and eventually reduced child care, each would also receive a $400 annual Canada Education Savings Grant, the lesser of 20 per cent of contributions or $500. Each child could then have about $57,400 for tuition, books and so forth.

Currently the RESP is almost entirely invested in marijuana stocks. This is bold, but the portfolio is not only poorly diversified, it is very risky given that the industry is not even well defined. Robbie and Emily should broaden their holdings, Winkelmolen suggests. Mature industrials, financials, utilities and a small weight in government bonds would cut risk.

Retirement income

Emily and Robbie have $422,000 in their RRSPs. If they contribute $19,850 per year to their RRSPs for the next 13 years to Robbie’s age 50, then assuming 3 per cent growth after inflation, the accounts will hold $929,750 in 2019 dollars and support payouts of $39,050 per year for the next 40 years to his age 90.