There are specific government rules surrounding RRIF investments including that earnings in a RRIF are tax-free and amounts paid out of a RRIF are taxable on receipt.
Based on your age, you must withdraw a minimum amount out of your RRIF each year based on a depletion table the government has established, and there is no limit on the maximum amount you can take out.
The minimum amount must be paid to you in the year following the year your RRSP is converted into a RRIF. You can open a RRIF at any time, however you have until the year you turn 71 to open one. Once you have converted your RRSP to RRIF investments, you can no longer contribute to an RRSP, and can no longer have an RRSP. If any money is left in your RRIF when you die, it will go to your named beneficiary or to your estate. Speak with a Bow Valley Credit Union Representative to get full advice on RRIF planning, or visit the Government of Canada’s Website for further up to date details.
You can choose various investment options for a RRIF, including Guaranteed Investment Certificates (GIC), Fixed or Variable Interest Rates, Redeemable and Non-Redeemable Terms, and high yield savings accounts. A Bow Valley Credit Union representative will help you to develop a retirement income strategy and provide investment options to help you maximize you return. You should pay particular attention to the type of investments you choose for your RRIF plan. If you invest in non-qualified investments, or if qualified investments held in your RRIF become non-qualified, there could be tax implications.
|It is also important to know that investing with Bow Valley Credit Union will provide you the peace of mind in knowing that as a Credit Union your investments are safe and 100% guaranteed by the Credit Union Deposit Guarantee Corporation (CUDGC), including the interest earned on your RRIF.|
Bow Valley Credit Union also partners with Credential Securities to offer various other RRIF investment options that can further diversify your portfolio and make your money work harder for you. Mutual Funds, Ethical Funds, Bonds, and Segregated Funds, are just a few of the other investment savings options available to you to help you reach your investment goals. Our Credential Securities Investment Advisor will take the time to understand your goals and objectives to develop a portfolio specially tailored for you.
*Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.