“The best time to plant a tree was 20 years ago. The second best time is now.”
Whether you’re farming 500 acres or running a family operation, the reality is this: most Canadian farmers are so focused on the work that they never stop to build the plan. And without a plan, everything you’ve worked for is vulnerable — to taxes, to probate, to chance.
In Episode 17 of Farmers in Finance, Rico sits down solo to break down the three essential plans every farmer needs: a retirement plan, a will, and a legacy vision. If you’ve been putting any of these off, this episode is your wake-up call.
Why Planning Is the Real Farm Work
Rico opens the episode with a powerful analogy: you wouldn’t head into the mountains without a map, and you wouldn’t plant a crop without knowing what you’re growing. Yet most people drift through their financial lives without a clear system.
Planning isn’t about fear — it’s about clarity. When you have a plan, you can say yes to the right things and no to the distractions. You can measure your progress. And you can build with intention instead of just hoping things work out.
James Clear’s message from Atomic Habits resonates here: small, consistent improvements compound over time. 1% better every day doesn’t feel like much — until it does.
Plan #1: Retirement — RRSPs, RESPs & RDSPs
The RRSP — Tax Deferral, Not Tax Elimination
RRSPs are one of the most well-known retirement tools in Canada — but they’re widely misunderstood. Here’s the core truth: an RRSP is a tax deferral vehicle, not a tax-free vehicle.
Yes, contributing to your RRSP lowers your taxable income today. But when you withdraw those funds in retirement, you pay tax on every dollar. The strategy only works if your tax rate at withdrawal is lower than your rate today.
Here’s where it gets complicated for many retirees. Consider this common scenario:
- You retire and receive $30,000/year in CPP — sitting in a low tax bracket
- At age 71, the government forces you to convert your RRSP to a RRIF and take minimum withdrawals
- That minimum might be $25,000/year — pushing your total income to $55,000
- Suddenly you’re in the 40% tax bracket, paying more in tax than if you hadn’t saved at all
The lesson? You need to plan your RRSP exit strategy, not just your contribution strategy.
The RRSP Meltdown Strategy
One solution Rico discusses is the RRSP Meltdown: strategically withdrawing RRSP funds before age 71 — while your income is lower — to reduce the forced income spike at retirement.
By taking out amounts that keep you in a lower tax bracket throughout your 60s, you avoid the cliff that many retirees hit. You can also take out tax-efficient loans using the RRSP as collateral, with the loan balance repaid from the estate (and interest deductible).
This isn’t a one-size-fits-all strategy. Want to know if it applies to your situation? Reach out to Rico for a personalized conversation.
RESPs — Building Your Children’s Future
The Registered Education Savings Plan (RESP) is one of the most underutilized tools in Canada. The federal government provides a 20% matching grant (up to $500/year, lifetime max $7,200) on contributions for your child’s education — that’s free money.
RDSPs — Planning for Disability
The Registered Disability Savings Plan (RDSP) is designed for Canadians with disabilities — and government grants of up to $3,500/year are available. As awareness of mental health challenges grows, so does the relevance of this tool for families planning ahead.
A Word on Taxes
Rico asks a question most people never pause to consider: If someone took 40% of your crop, would you ask why?
Income tax in Canada is a reality — but understanding what it’s actually for, and how to legally minimize it through registered plans and proper structuring, is what separates those who build wealth from those who just earn it and give it away.
Tools like RRSPs, TFSAs, holding companies, and farm trusts all exist precisely because Canadian tax law provides legitimate pathways to keep more of what you earn. Knowing these tools — and using them — is not avoidance. It’s planning.
Plan #2: Wills & Estate — Your Last Statement to the World
A will is not for you. It’s for everyone you care about.
Rico shares a personal story: a friend who was diagnosed with a serious illness and rushed to get his affairs in order while already mentally and emotionally overwhelmed. The result was confusion, poor decisions made under duress, and unnecessary stress at the worst possible time.
The lesson is clear: your will should be written when you’re calm, clear-headed, and in control — not when you’re facing a crisis.
What Happens Without a Will
If you die intestate (without a will), the province decides how your estate is distributed. That means:
- Your assets may not go to who you intended
- The process goes through probate — costly and time-consuming
- Business assets, farm equipment, land — all potentially tied up or split in ways you’d never choose
Writing Your Will Doesn’t Have to Be Expensive
One of the biggest misconceptions is that a will is a luxury. Today, you can create a legal will online for a fraction of the traditional cost. Rico’s advice: if you don’t have one, start somewhere — even a handwritten statement is better than nothing. Then get it properly registered.
Every time Rico closes a real estate deal, he asks his clients: “Have you updated your will? You just added a significant asset to your estate.”
Your Estate Is Your Final Vote
A will gives you the power to decide where your energy goes after you’re gone. You could leave everything to your kids, to a charity you believe in, to a cause that’s bigger than yourself. The point is: you decide — not the government, not the courts.
Plan #3: Legacy — The Deepest Plan of All
Legacy is more than what you leave behind financially. It’s the vision, the values, and the energy you plant in the world.
For Rico, one of his most tangible legacy goals is this: plant 2 million trees in his lifetime. (It started as 1 million on this episode — a live comment pushed it to two. And now it’s sealed on the internet.)
Why trees? Because a single tree gives oxygen, fruit, shade, soil health, habitat for birds and insects, and a legacy that outlives the person who planted it. It’s compounding in biological form.
Legacy Starts Now
The book Be Your Future Self Now by Dr. Benjamin Hardy offers a powerful framework: don’t wait to become the person you want to be. Start living as that person today.
Rico’s vision extends beyond his own family. He wants to create a school for entrepreneurs — where teachers are people who’ve actually done it. Where kids learn from those who’ve built things, not just studied them. That’s legacy thinking.
The Farmer Mindset as a Legacy Framework
Throughout this episode, Rico uses “farmer” as a metaphor for anyone who:
- Thinks long-term
- Produces real value
- Cares about what comes next
- Plants seeds today for harvests they may not see
That’s the Farmers in Finance ethos.
Episode Summary: The 3 Plans
| Plan | What It Protects | Key Action |
|---|---|---|
| Retirement | Your income in old age | Review your RRSP strategy before 71 |
| Will & Estate | What you leave behind | Get a will — now, while you’re calm |
| Legacy | The impact of your life | Define what you want to plant in the world |
Resources & Next Steps
- 📘 Farm Succession Planning for Canadian Farmers
- 📘 Wills & Estates for Canadians for Dummies
- 📘 Atomic Habits – James Clear
- 📘 Be Your Future Self Now – Dr. Benjamin Hardy
Have questions about your own retirement plan, will, or estate strategy? Rico is available for a no-pressure conversation.
📱 Call or text: 1-236-457-4230
🌐 farmersinfinance.com
📧 [email protected]
⚠️ Disclaimer: The information in this episode is for educational purposes only and does not constitute financial, legal, or tax advice. Always consult a qualified professional before making financial decisions. Riccardo Manazza is a licensed financial associate with Experior Financial Group and a REALTOR® with eXp Realty.