RRIF

Great benefits of opening an RRIF

A Registered Retirement Income Fund (or RRIF) is usually opened when you transfer money from an existing RRSP. It is a type of savings account which has the advantage of providing you with a consistent and regular source of income in your retirement. Here are some good reasons to consider opening a RRIF.

  • You retain control over how your money is invested. You can choose between investment options such as mutual funds, segregated funds, and GICs for example, depending on your circumstances.
  • You benefit from tax-free savings. When you transfer funds from your RRSP to a RRIF you won’t pay any tax on your investment earnings or on the funds that remain in the RRIF, though you will have to pay tax on any money that you subsequently withdraw.
  • On the topic of withdrawals, a RRIF offers good flexibility providing that you withdraw the agreed minimum amount every year. There is no maximum amount that you have to withdraw and it is your choice as to how often you make withdrawals or the frequency or value of them.
  • You have the option of stating your spouse as your beneficiary so that they can inherit the funds in your RRIF in the event of your death, without paying any tax. In fact, if you choose to name your spouse as a “successor annuitant” then they are able to take the RRIF over so that they can receive payments from it directly. In addition, your RRIF is not classed as part of your estate and is therefore exempt from exclusion in probate fees.
  • A final benefit of an RRIF is that the minimum annual withdrawal amounts depend on your age and are lower the younger you are.  The age of your spouse can be used to base these minimum annual withdrawals on and, if they are younger than you, this could potentially reduce the amount of tax that you pay on withdrawals.

Latest News

When and Why You Should Conduct an Insurance Audit

As our lives grow and change with variable circumstances, new additions, and job transitions, our needs for insurance will also evolve. Additionally, economic fluctuations and external circumstances that influence your insurance policy will need frequent re-evaluation to ensure that you are making the most appropriate and financially favorable decisions. Talk to us we can help.

2019 Financial Calendar

Financial Calendar for 2019- All the deadlines you need to know to maximize your benefits!

Why You Should Consider Critical Illness Insurance

There are no perfect answers in the area of your personal finances, but if you are looking for an option that has the potential to offer you a real sense of peace of mind to secure the financial future of you and your family, critical illness insurance is certainly an interesting avenue to explore.

Tax Planning Tips for End of 2018

Now that we are nearing year end, it’s a good time to review your finances. 2018 saw a number of major changes to tax legislation come in force and more will apply in 2019, therefore you should consider available opportunities and planning strategies prior to year-end.

Financial Planning for Business Owners

Financial Planning for business owners is often two-sided: personal financial planning and planning for the business. Business owners have access to a lot of financial tools that employees don't have access to; this is a great advantage, however it can be overwhelming too. A financial plan can relieve this. A financial plan looks at where you are today and where you want to go. It determines your short, medium and long term financial goals and how you can reach them. For you, personally and for your business.

Do you need an estate plan?

Managing your finances raises a number of topics but none as tricky and potentially unpleasant as planning for your family and finances in the event that you pass away or become incapacitated. Understandably, these questions are often ignored by many—but don’t fall into the trap of avoiding these difficult matters. Good estate planning will help to make sure that your wishes are carried out, and your family and assets are well protected.

Paying for Education

Post-secondary education can be expensive, however having the opportunity to plan for it helps with making sure that you’re capable to meet the costs of education. In addition, when you have a plan, it’s easer to make financial decisions that align with your goals and provide peace of mind.

Retirement Planning for Business Owners

Retirement planning can be a complex process for us all, but if you are the owner of a small business it may can get even more complicated, due to the various factors and circumstances that you have to take into consideration. A common mistake made by small business owners is reinvesting extra money to grow their business, at the expense of putting it aside to save for their retirement.

Accessing Corporate Earnings

One of the financial planning issues that business owners face is how to access their corporate earnings in a tax efficient way. Please contact us to learn how we can get more money in your pocket than in the government's.