episode: 64

Important RRIF Options to Consider for Retirement Planning

November 15, 2022

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What is a RRIF and How Does it Work

For many Canadians, the RRSP (Registered Retirement Savings Plan) is the primary driver of their retirement savings.

An RRSP allows you to contribute a percentage of your income each year which, unlike non-registered accounts, can grow in that account while deferring taxes until you withdraw. Later, when you stop working or reach age 71, you convert your RRSP to a RRIF (Registered Retirement Income Fund) and flip the switch from contributions to withdrawals.

A RRIF is a federally registered account that provides you with a steady stream of income that you can continue to draw on during retirement. It is essentially a continuation of your RRSP and functions in much the same way, however, you can only make withdrawals and can no longer make deposits with a RRIF.

In this episode, Marcelo and Lawrence talk about the main benefits of RRSPs and RRIFs, what you need to know about converting your RRSP to a RRIF, cash flow and tax considerations when drawing down from a RRIF in retirement, estate considerations for your RRIF, and so much more.

RRSPs vs RRIFs and RRIF withdrawal rules

  • Understanding your RRSP (2:16)
  • Three main benefits of an RRSP (3:23)
  • The relationship between an RRSP and a RRIF (4:46)
  • Differentiating between an RRSP and a RRIF;  LIRAs and LIFs (6:41)
  • What you need to know about RRIF withdrawal rules (8:08)
  • Cash flow considerations for your RRIF payments (10:24)
  • Reducing your tax obligation by basing your minimum RRIF payment on your younger spouse’s age (12:51)
  • Applying withholding tax to RRIF payments for better cash flow management (14:23)
  • Critical factors to think about when planning how to convert your RRIF (16:46)
  • The significant impact that strategic planning can have on your estate value (18:02)
  • How you can optimize your RRIF strategy if you’re still working at age 71 (23:56)
  • Why you should designate a beneficiary in your RRIF (25:54)
  • Final thoughts and key takeaways (27:09)
  • And much more!

Meet your hosts

Keith Matthews

Keith Matthews

Partner & Portfolio Manager

Marcelo Taboada

Marcelo Taboada

Associate Portfolio Manager

Lawrence Greenberg

Lawrence Greenberg

Associate Portfolio Manager

Thanks for Listening!

Be sure to subscribe on AppleGoogleSpotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112 Follow Tulett, Matthews & Associates on social media on LinkedInFacebook, and more! Follow The Empowered Investor on FacebookLinkedIn, and Instagram

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