Registered Retirement Income Fund (RRIF)

Think of a Registered Retirement Income Fund (RRIF) as an extension of your Registered Retirement Savings Plan (RRSP).

RRIFs are similar to RRSPs in many ways, the main difference being that contributions are not allowed beyond the initial investment. You may only withdraw from an RRIF.

The benefits of RRIFs:

• Provides a high level of control over your investments
• RRIFs can be left to a beneficiary
• Many RRIFs can be acquired – there’s no limit to how many an individual may invest in

What you need to know:

• You need to withdraw (and pay tax on) a minimum amount each year. This amount is determined by the CRA.
• There is no maximum withdrawal level.
• RRIFs are term investments. The term is determined by the age of the plan holder, or their spouse (if they are younger). If it’s determined by a younger spouse, the term will increase, as well as the amount you will be required to withdraw each year.

Are you thinking of the best way to get financial security even after retirement? Then, opt for Registered Retirement Income Fund, an extended version of the Registered Education Savings Plan. Both are similar in many ways. Holder of such account can save money by lowering the tax amount. Besides, this investment plan can be beneficial to senior citizens in many ways. Some of them are:

• Control over investment
• Reduces cost of expenditure
• Financial security

Steps involved in Registered Retirement Income Fund plan are not restricted to one. So, hiring a qualified and experienced financial advisor like Simranjeet Jaswal is essential for easy approval of this investment plan.

JASWAL can help you decide where your investments are best directed, and help you to secure a financially stable future.