Once you retire, you have a few income options to choose from. Most Canadians choose to open a Registered Retirement Income Fund (RRIF) account because of its similarities to a Registered Retirement Savings Plan (RRSP). Put simply, a RRIF is a continuation of your RRSP, except you can only withdraw from it. A RRIF is a retirement fund that provides an ongoing source of income for the account holder.
With a RRIF account, you will have more control of your finances. You will have the advantage of any growth within your plan being tax-deferred. You can also choose how much you withdraw and how often. The government does set a minimum amount that has to be redeemed each year depending on the total value of your RRIF.
A RRIF is great because of its flexibility, but we do recommend working with a financial planner because not every option is going to suit your goals. In general, there are a lot of things to consider when planning for retirement. We are here to help you. Click here to book your free consultation today.