Registered Retirement Income Fund
Flexible Withdrawal Options That Suit Your Income Needs
Registered Retirement Income Funds (RRIFs) are the most popular form of self-directed retirement income. While you don’t make contributions directly to a RRIF, funds can be transferred from an RRSP, another RRIF, a Registered Pension Plan, or a commuted RRSP annuity. At age 71, all RRSP investments must be converted to either a RRIF or an annuity, or cashed by December 31st.
A RRIF is basically the reverse of your RRSP. Instead of putting money in during the year, you withdraw it as an income source at regular intervals throughout the year. Plan holders are required to take a minimum level of taxable payments from their RRIF on an annual basis.
How Often Can I Take My RRIF Payments?
FirstOntario Credit Union offers flexible payment options to suit anyone’s individual needs. They include monthly, quarterly, semi-annual and annual RRIF payments, on the 15th of the month or at month end.
You choose the payment level as long as it meets the minimum levels set out by the federal government in its schedule. You can also withdraw more than the minimum if you wish; however, tax will be deducted from any amount withdrawn in excess of the minimum. At any time, you may decrease the withdrawal amount as long as the total annual withdrawal amount does not fall below the required minimum.
Let FirstOntario’s experts show you how to maximize your income during retirement. Call us for an investment chat with a Member Consultant to learn more or to set up your RRIF.
RRIF Investment Options
FirstOntario gives you three options for investing the funds you place into a RRIF:
Term Investments (GICs) give you the security of government-guaranteed deposit insurance1 and a competitive rate of interest, with available terms from 90 days to five years.
Get the potential for a higher return with mutual funds. Credential® Asset Management Inc.2 offers a select group of the most popular funds from Canada’s leading mutual fund providers, plus the award-winning Ethical Funds family of socially responsible funds.
You can choose stock or bond investments within a RRIF. Through our Credential Securities®2 Investment Advisors, you can work with an expert at FirstOntario who understands the intricacies of investing and preserving your money. We offer full-service investing with knowledgeable advice tailored to your unique circumstances.
1. Deposits are insured by the Deposit Insurance Corporation of Ontario. Insurance is limited to $100,000 per individual for unregistered investments, whereas it is unlimited for TFSAs and other registered plans.
2. Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities Inc. is a Member of the Canadian Investor Protection Fund.
®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.