Registered Plans

• RRSPs
• RRIFs
• RESPs

Investment Basics

Registered Retirement Income Funds (RRIFs)
Selecting the right retirement income option is one of the most important financial and estate planning decisions you'll make. Especially today, when statistics show that Canadians are living longer, healthier lives. It's important to make choices that not only protect your savings but ensure that the purchasing power of your money lasts for decades.

A Registered Retirement Income Fund (RRIF) allows you to continue to earn tax-deferred income on a significant portion of your retirement assets while providing you with the flexibility to increase your withdrawal at any time. For these reasons, RRIFs are the RRSP maturity option of choice for many Canadians.

A RRIF is very much like an RRSP in reverse. An RRSP is an account designed to help you save for retirement - a RRIF is an account designed to provide an annual income in the form of withdrawals from the plan during your retirement.

Like an RRSP, the assets in the RRIF continue to be tax sheltered until withdrawn. With a RRIF you continue to control how your funds are invested and have access to all the same investments you had with an RRSP.

Canada Revenue Agency (CRA) requires that you take at least a minimum amount out of your RRIF each year, however, you may withdraw more than the minimum if required. The withdrawals are calculated based on your age and the market value in the account. You can also leave the remaining RRIF assets to your heirs.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.