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Investment Services: RRIF's Registered Retirement Income Fund A Registered Retirement Income Fund is a trust fund registered with Revenue Canada for the purpose of providing a retirement income for the beneficiary. The Income Tax Act requires an individual who owns an RRSP to mature the plan by the end of the year in which the beneficiary turns age 69. The beneficiary then has the option of using the funds to purchase a life annuity, rolling the funds into a RRIF or receiving a lump-sum payment from the RRSP. If a RRIF is chosen, the Income Tax Act also requires that a minimum percentage of the value of the RRIF be withdrawn from the RRIF each year to provide for a retirement income. Depending on the age of the beneficiary, the minimum amount is calculated as a percentage of the RRIF assets at the beginning of each year. Eligible Investments The same investments permitted for an RRSP are eligible for a RRIF. Although in most cases, funds within a RRIF are invested in more conservative investments reflecting an individual's desire to preserve capital during retirement. Common investments include guaranteed investment certificates (GICs), and a variety of mutual funds. RRIF vs Annuity A RRIF is designed to provide an RRSP annuitant with a more flexible option than purchasing a life annuity. This flexibility allows the individual to withdraw funds as he or she needs them, subject to the minimum withdrawal amounts. In addition, the funds held within the RRIF continue to accumulate on a tax-sheltered basis Algoma Financial Services offers RRIFs from a wide variety of sources.
If you are interested in GICs, we will shop the market for you to ensure
the best rate possible. Currently our experience shows that very competitive
rates are available from Manulife Bank, National Bank of Canada, Laurentian
Bank and B2B Trust. To find out more information and
to find out about our best rates, email or call us today! |
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