RRIF / LIF. Dream. It will come true.

Transcription

1 RRIF / LIF Dream. It will come true.

2 What are they? When you convert the principal you ve accumulated in your registered retirement savings plan (RRSP), locked-in retirement account (LIRA) or locked-in RRSP into retirement income, the result is a registered retirement income fund (RRIF) or a 1 life income fund (LIF). RRIFs and LIFs are designed to provide you with the income you need once you ve retired. Funds transferred into an RRIF or a LIF keep growing, tax-free, until you make a withdrawal. You can convert your RRSP into an RRIF or your LIRA or locked-in RRSP into a LIF at any time, because there s no minimum age. However, there is a deadline; you have to convert your savings into one of these plans by December 31 of the year you turn 71.

3 Advantages of RRIF/LIF Both RRIFs and LIFs provide plenty of exibility for managing your retirement t income. They re easy to set up and the application process is simple to follow. You can plan your retirement income over a predetermined number of years and you re able to spread out your income taxes because you re only taxed on what you withdraw. You choose how often you want to make withdrawals weekly, monthly, semi-annually or annually based on how much income you need. There is a minimum withdrawal amount based on a percentage of the total value of the plan on January 1 of each year. If you run into an unexpected expense you can withdraw a lump sum from your RRIF, over and above the minimum required, at any time. 2 When it comes to a LIF, you can t exceed the annual maximum withdrawal amount. However, if you live in Quebec there are certain conditions under which you might qualify for a temporary annuity. RRIF or LIF withdrawals are taxable and added to your annual income from the year they re made. Any RRIF or LIF withdrawals over the annual minimum are also taxable. 1. RRIFs, LIFs and TFSAs are registered savings accounts under the provisions of an enrolment con 2. Depending on the type of investments you have in your RRIF or LIF. 3. Mutual fund are sold and distributed by Acadia Financial Services Inc. Acadia Financial Services management fees and expenses all may be associated with mutual fund investments. Please re stated, mutual fund securities and cash balances are not insured by the Canada Deposit Insuran

4 Convert your investments and pursue your retirement ement into income dreams Maybe you dream of travelling the world, taking up a new hobby, practicing your favourite sport, or simply maintaining your current lifestyle. All of these dreams can become reality when you use a UNI RRIF or LIF to plan your retirement. UNI offers a wide range of investments that will meet your specific c needs and help your investments grow: Conventional RRIF/LIF Personalized Annui ity RRIF/LIF Market-Linked Guaranteed Investments RRIF/LIF Mutual Fund Investments RRIF/LIF 3 1 RRIFs, LIFs and TFSAs are registered savings accounts under the provisions of an enrolment contract issued and administeredb y Desjardins Trust Inc. 2 Depending on the type of investments you have in your RRIF or LIF. 3 Mutual funds are sold and distributed by Acadia Financial Services Inc. Acadia Financial Services Inc. is a wholly-owned subsidiary of Financière Acadie Inc. which is itself a wholly-owned subsidiary of the Caisse populaire acadienne ltée. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or the Fund Fatcs before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.u nless otherwise stated, mutual fund securities and cash ct issued balances and administered are not insured by Desjardins by the Trust Canada Inc. Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit c. is a unions. wholly-owned subsidiary iary of Financière Acadie Inc. which is itself a wholly-owned subsidiary o the prospectus or the Fund Facts before investing. Mutual funds are not guaranteed, their values ch Corporation or by any other government deposit insurer that insures deposits in credit unions.

5 What happens in case of death? If your spouse is the beneficiary or legatee (depending on the particular product), the value of the RRIF is simply transferred to their RRSP or RRIF and can keep growing tax-free. Do you have dependent children or grandchildren? They may also qualify as RRIF beneficiaries or legatees. In all other cases, the total amount of the RRIF is included in the deceased s income. If you have a LIF, it must be paid out to your spouse. If you don t have a spouse, it will be paid out to your heirs or beneficiaries and taxed the same way as an RRIF. Planning active retirement? an ement? Contact your UNI advisor to find out how an RRIF or LIF can provide you with the retirement income you need to reach your goals. If you ve already started planning or have already retired, they are happy to answer all your questions and explain all the ways UNI can help you get the most out of your money. the Caisse populaire acadienne ltée. Commissions, trailing commissions, nge frequently and past performance may not be repeated. Unless otherwise

6 Strategies and benefits Reinvest your RRIF or LIF withdrawals in your TFSA 2 If you don t need the money you re withdrawing from your RRIF or LIF, you can invest in a TFSA and benefit from a tax-sheltered investment. Max out your TFSA contributions You can transfer up to $5,500 each year to your spouse so they can also contribute to their TFSA. That way each of you can get the most of the annual tax-free contribution limit and decrease your overall tax exposure over the long run. Contribute to your adult children s TFSA Helping your adult children make a contribution to their own TFSA is another strategy to reduce your taxable income while giving them financial support. Protect your from after your «tect savings taxes «Bâtir death votre avenir, Any income and earnings TFSA c est bâtir generated l avenir by your prior to your death are tax-exempt. The accumulated amounts can also be transferred to your surviving spouse s TFSA affecting de la société.» s without»fec their own contribution room. om.

7 RRIF or LIF and the TFSA, a winning combination i The tax-free savings account (TFSA) is a registered plan that gives you a way to grow your savings while keeping your taxes down, as investment income and TFSA withdrawals are non-taxable. By pairing an RRIF or LIF with a TFSA, you can benefit from both plans and shelter even more of your savings from taxes. And since there s no age limit to contribute to a TFSA, why miss out? Making the most of governement benefits and tax credits Investing in a TFSA has no impact on your right to income-based tax credits or government benefits. It s a win-win. Short on cash this year? Don t worry. Any contributions you haven t been able to make and any amounts you ve withdrawn are carried forward towards your contribution room in future years.

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