Registered Retirement Income Funds (RRIFs)
A RRIF is a registered fund that is opened when you transfer funds from your RRSP. While it can happen earlier, often to take advantage of certain pension tax credits, you must close your RRSP by December 31st of the year you turn 71.
How to Invest
You can invest your RRIF in a variety of options depending on your goals and comfort level. Choose stable choices like GICs or high-interest savings accounts, or aim for long-term growth with mutual funds.* If you prefer managing your own portfolio, you can also invest your RRIF online with Qtrade.**
How does a RRIF work?
- You transfer your funds from the RRSP to the RRIF, tax free, with help from your Libro Coach.
- Your RRIF generates retirement income at a rate you can control – which in turn manages the amount of tax you will pay on that income. Remember, your RRSP was only deferring taxes until you needed the money or turned 71. Time’s up – but you can control the tap a little and your income can be low enough that the taxes you generate are low as well. In other words, spread it out. There are some minimum annual payments based on your age we’ll need to discuss.
- The money in your RRIF can be held in any of the investments you selected for your RRSP. Have a plan and be sure you understand exactly how the plan works.
- Your RRIF will trigger estate planning options, investment decisions and other financial choices. Make those choices from an informed point of view. Your Libro Coach knows this world and knows you – that’s a tough combination to beat.
- Ask your Libro Coach to walk you through the RRIF calculator in person. You’ll get to know the numbers and that leads to peace of mind.
Investment Calculators
*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated. **Online brokerage services are offered through Qtrade Direct Investing. Qtrade Direct Investing and Qtrade Guided Portfolios are divisions of Aviso Financial Inc.