Episode 367: AMA #8 + Insurance Needs Analysis with Louai Bibi

34 snips

Jul 24, 2025

Louai Bibi, a financial planner at PWL Capital, shares his wisdom on RRSP decumulation strategies and personalized insurance planning. He challenges the notion that early RRSP withdrawals are always tax-smart, emphasizing the need for tailored approaches based on client goals. Louai also delves into the intricacies of life, disability, and critical illness insurance, explaining why the right coverage isn't one-size-fits-all and how even the smallest policies can make a significant impact.

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ADVICE

Model RRSP Meltdown Strategies

Model RRSP meltdown strategies to see if early withdrawals benefit your specific situation.
Avoid following generic YouTube advice without personalized financial planning.

INSIGHT

Consider Present Value of Taxes

Paying RRSP taxes earlier often balances out lifetime tax savings when discounted to present value.
Present value of taxes matters more than total lifetime taxes for RRSP withdrawal decisions.

ADVICE

Annual RRSP Strategy Review

Review RRSP meltdown strategies annually with your financial planner in November.
Consider the impact of asset allocation and tax drag on the effectiveness of early withdrawals.

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What if early RRSP withdrawals aren’t always the tax-smart move they’re made out to be? In this special AMA edition of the Rational Reminder podcast, Ben and Cameron are joined by PWL Financial Planner Louai Bibi for a wide-ranging discussion on RRSP decumulation strategies, insurance planning, and the practical complexities that real clients face when theory meets reality. Ben walks through a listener’s case study and shares insights from colleague Melissa on why early RRSP withdrawals (a.k.a. “meltdown” strategies) are not always beneficial—especially when viewed through a present-value lens. Louai contributes in-the-trenches experience, highlighting how client goals (estate vs. living net worth) and asset allocation can significantly influence what makes sense. In the second half, Louai delivers a comprehensive walkthrough of how PWL approaches life, disability, and critical illness insurance planning—not as salespeople, but as fiduciaries. You’ll hear why the right coverage isn’t one-size-fits-all, how survivor models are used to project financial impacts, and why the smallest, cheapest policy can still make a life-changing difference.

Key Points From This Episode:

(0:00:04) Introduction and full-circle moment: Louai Bibi joins the show.

(0:01:48) Reflections on the first PWL employee summit and One Digital integration.

(0:06:30) Upcoming Rational Reminder meetups in Victoria and Vancouver.

(0:07:40) Steve’s question: Should he be melting down his growing RRSP?

(0:09:15) Ben outlines a detailed client case where early withdrawals had minimal benefit.

(0:12:10) Key takeaway: Present value of taxes matters more than total lifetime taxes.

(0:13:50) Melissa’s advice: Model your specific situation, not just follow YouTube tips.

(0:15:56) Louai adds: The impact on future investment growth and taxable account drag.

(0:17:28) Systematically reviewing RRSP strategies annually in November.

(0:21:12) Taxes and portfolio construction: Home country bias, withholding tax, and more.

(0:22:11) The importance of tax diversification—lessons from the capital gains inclusion saga.

(0:23:11) RESP withdrawals and CRA’s definition of “reasonable” expenses.

(0:25:41) Fiduciary standards in Canada: Why sweeping change is unlikely.

(0:26:29) Most influential ideas from 300+ episodes: Market beliefs, information overload, and Die With Zero.

(0:34:36) Time, meaning, and memories: A shift in life perspective through the podcast.

(0:38:47) Louai’s top 3 lessons: Unified philosophy, consumption smoothing, and homeownership myths.

(0:42:21) Deep dive: How PWL approaches life, disability, and critical illness insurance.

(0:45:00) Life insurance: Survivor modeling, planning trade-offs, and permanent vs. term.

(0:51:32) Disability insurance: Hidden risks in group coverage and income replacement importance.

(0:56:36) Critical illness insurance: A real story about an inexpensive policy that changed a life.

(1:00:07) Ben’s experience with testicular cancer and hindsight on CI coverage.

(1:01:45) Teaser: A new disclaimer for reading podcast reviews.

(1:02:08) After-show: MobLand, The Sopranos, and the nostalgia of Animal Kingdom.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Louai Bibi — https://pwlcapital.com/our-team/

Louai Bibi on LinkedIn - https://ca.linkedin.com/in/louaibibi

Louai Bibi on X - https://x.com/louaibibi

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)