manage your retirement with an RRIF
You’ve finally reached retirement and are living the dream. Congratulations! So, what’s next? (Ps… an RRIF might just be the answer).
No matter what your retirement plans, you will still need an income to help cover the cost of your daily expenses. But don’t worry, that doesn’t mean you have to go back to work!
What is an RRIF?
With a Registered Retirement Income Fund, your investment in an RRSP or pension fund is paid out over a period of time to avoid paying tax on the whole sum at once. Essentially, an RRIF is the same thing as a self-administered annuity.
How does an RRIF work?
Unlike an annuity, which fixes your rate of return for life at the time your purchase it, the investments in a Registered Retirement Income Fund are controlled by you, meaning you have the option of choosing a variable rate savings plan or a fixed-term plan.
There is a minimum amount you must withdraw each year based on Revenue Canada’s guidelines, however, you can take more out at any time you wish. And while you can’t put money back into your RRIF (only withdraw it), you can transfer funds into it from your RRSPs, another RRIF, or even a Registered Pension Plan.
It can get a git complicated so if this is something you are interested in, just give us a call and we’ll be happy to help you out.
What are some RRIF options?
Just like our RRSPs, RRIFs are available in a number of investment options (and we can help you choose the one that will best suit your needs). For additional information on how an RRIF may benefit you, give us a shout. We’re happy to help!
Please note: some fees may apply for partial or full transfer outs. Please see our service fees here.