RRIF Withdrawals Explained
If you’re nearing retirement, you’ve probably begun to think about how to convert your Registered Retirement Savings Plan (RRSP) to Registered Retirement Income Fund (RRIF). You've saved money in your taxdeferred RRSP for years, but now it’s time to use those funds for your retirement expenses.
While you have the option of withdrawing those funds as a lump sum, you’d be wise to convert the account to a Registered Retirement Investment Fund (RRIF) instead. This is the preferred investment vehicle for retirees.
Like the RRSP, the RRIF is a taxdeferred account that can grow through investment. The difference, however, is that instead of depositing money into the RRIF, you withdraw money over time to fund your retirement.
Essentially, an RRSP is how you save money for your retirement fund, and an RRIF is how your retirement money moves back to your pocket.
Why would you want your money in an RRIF?
You don’t pay taxes on money in your RRIF as long as it stays there. You only pay taxes on what you withdraw each year.
It’s flexible. You can choose how much you withdraw and how often. This means you can change how you use your money based on your individual circumstances, even if those circumstances change.
You can hold various investments, such as Exchange Traded Funds (ETFs), Guaranteed Interest Options (GIOs), segregated funds, mutual funds, etc.
You have some creditor protections in the event of bankruptcy.
You don’t pay any taxes when you convert an RRSP to RRIF.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to schedule your confidential meeting with me. You can schedule your meeting here: https://calendly.com/aaronwealthmanag...
➤ to our Channel here: http://bit.ly/2lPUJjA
➤ Business Inquiries:
☎ 18666238368
[email protected]
https://aaronwealthmanagement.com/
calendly.com/aaronwealthmanagement
⚡ Connect with David Aaron on Social Media
Facebook: / aaronwealthmanagement
LinkedIn: / aaronwealthmanagement
Instagram: / bizwealthadvisor
Pinterest: https://www.pinterest.ca/aaronwealthm...
Toronto | Mississauga | Oakville | Burlington | Brampton | Woodbridge | Vaughan | Richmond Hill | Newmarket | Thornhill | North York | GTA | Etobicoke | Markham| Aurora | King City