A RRIF is a retirement product funded by your RRSP funds which you normally buy when you retire.
You also have the option of an annuity with a fixed guaranteed income. Both products are designed to provide you with an income stream from your RRSP.
With RRIF's you can invest in GIC's, mutual funds or segregated funds.
As with all types of calculations, we need to make assumptions which may be well off the mark.
Assuming a growth rate of x % can lead to some bad financial results, so you need to be careful.
Most financial sites have different sorts of calculators but with most, you need to make assumptions which renders the whole exercise useless.
The most important exercise of all is to be careful with your funds as you may not have the chance to replace them.
RRIF Withdrawal Rates
I placed several investments with him, and now in my retirement, I can report that he was able to invest wisely on my behalf.
P Several months ago, I engaged Ivon Hughes of the Hughes Trustco Group to explore annuities for myself and my wife. As I intended to use both registered (RRSP) money and non-registered monies, Ivon explained to me that different tax rules applied. As this would obviously affect my after-tax income, it helped me make some strategiic decisions. And one important idea he gave me was to split the capital to take advantage of the 100 % insurance coverage available which guarantees the payments.
I approached your company because I found your website well structured, informative and easy to use.
Paul | Ontario
Thank you Mr Hughes for all your assistance in securing the best annuity rate for me, and for your diligence in coordinating the transfer of my pension. Your persistence in dealing with all the parties involved was greatly appreciated, and it was a relief to know that you were handling the myriad of paperwork on my behalf.
Over the past 40 plus years, I have talked about retirement income with many people and perhaps someone like you.
It is not always easy to make a decision between a RRIF and an annuity. The more income you have guaranteed to come in from a company and government pension, the harder it is to decide if you need further guarantees.
We suggest you talk about a RRIF Retirement Plan with one of our advisors before making your final decision.
These are some of the companies our brokers represent.