A Registered Retirement Income Fund, RRIF, can be a wise choice to provide you with a steady income during retirement. A RRIF is a plan that can hold eligible investments within it, such as Guaranteed Interest Accounts (GIAs) or Segregated Funds.
A RRIF is an investment product used to generate income from assets that have been saved throughout your lifetime. A RRIF can be set up at anytime, but they typically are set up and used in your retirement years as an income distribution product. A RRIF often works as an extension of an RRSP because an RRSP must be converted to a RRIF by the end of the year in which you turn 71. What separates a RRIF from an RRSP is that there is a minimum withdrawal amount each year that is set by the government. There is no maximum withdrawal limit for a RRIF, and if any money is leftover when you pass, it will be distributed per your instructions to either a named beneficiary or your estate.
Talk to a FaithLife Financial Representative to learn about investment solutions that are right for you.