Registered Retirement Income Funds

Minimum Withdrawal

Excess Withdrawals

Investing Considerations

Choosing the Right Asset Mix

How to Get Started

RIF Application RRIF Guide RRIF Payment Schedule

A Registered Retirement Income Fund (RRIF) is a plan that is designed to provide a steady stream of income during retirement. Similar to an RRSP, a wide range of investments can be held in a RRIF and the income on the balance accumulates tax-free. However, a specific percentage of the plan's assets must be withdrawn each year as income.

An RRSP must be collapsed by the end of the year in which you turn 69. There are a number of options to choose from when managing your accumulated retirement funds. Your decision must be communicated to us in writing with the appropriate forms by December:

Convert your RRSP to a RRIF. A RRIF offers the flexibility to choose your own investments, while continuing to enjoy tax-sheltered growth. You will also receive an income stream that's based on a pre-determined percentage of the plan's assets each year, plus you can withdraw extra cash when needed (subject to withholding tax).
Purchase an Annuity. Roll your RRSP into an annuity and receive a fixed or indexed to inflation income stream. Keep in mind that the money will be locked in at current interest rates and you will have no control over how it's invested.
Cash in your RRSP. This is an unsuitable option for most individuals since the entire amount is subject to taxation in the year of withdrawal.

RRIFs are the most popular choice among retirees

With an Altamira RRIF, you're in control.

Choice - Select the investments that best match your financial objectives. At Altamira, you can choose from our diversified family of no-load funds, or purchase stocks, bonds, and over 2,000 third-party mutual funds through our discount brokerage arm, Altamira Securities.
Convenience - There is no need liquidate your RRSP. A simple account application form is all that's required to convert your RRSP to a RRIF.
Advice - Here's the best part - you don't have to do it alone. An Altamira Investment Specialist can recommend a RRIF portfolio that is ideally suited to your circumstances.

Minimum Withdrawal

The government stipulates that a minumum payment must be withdrawn from your RRIF each year and reported as income. This minimum annual payment is taken from a government schedule that is based on your age or the age of your spouse. You must receive your first payment no later than the end of the year in which you turn 70.

We Can Help

An Altamira Investment Specialist can assist you in determining your annual minimum payment and tailor their timing to meet your cash flow needs.

For example:

If your RRIF is not your primary source of income, you should select a schedule that provides the minimum income payment. This will allow for maximum tax deferral.
If RRIF payments are your primary source of income, you can request monthly deposits to your bank account.

Excess Withdrawals To top

If you withdraw more than the minimum, the payment will automatically be reduced by the appropriate amount of withholding tax. The following table indicates the amount of tax that will be withheld at source on any amount that exceeds the minimum withdrawal set by Canada Revenue Agency (CRA).

RRIF withdrawals in excess of the minimum	All Provinces Except Quebec	Quebec
Up to $5,000	10%	21%
Over $5,000 to $15,000	20%	26%
Over $15,000	30%	31%

Investing Considerations To top

In order to manage your RRIF effectively you must determine your financial objectives, investment time horizon and risk tolerance. Keep in mind, statistics tell us that Canadians are living longer, so your time horizon could be as long as 20 to 25 years. Just like your RRSP, your RRIF should be appropriately diversified

Capital preservation is often the most important objective for retirees, especially when a RRIF represents the bulk of their retirement savings. High-Interest CashPerformer is Altamira's daily interest savings account that's as safe as your deposit account and likely offers a higher rate of interest.

Steady income generation is another priority for retirees, especially those who need to cover their living expenses. Altamira offers a suite of fixed income funds ranging from very low to moderate risk levels, which can help meet your need for steady income.

Inflation protection is another priority during retirement, particularly since it can span over two decades. Keeping up with cost of living increases is crucial during this period, and one of the best ways to accomplish this is through equity exposure. Altamira's diverse range of equity funds spans geographic regions, sector and industry preferences, company size and risk tolerance levels.

Choosing the Right Asset Mix To top

The following sample portfolios illustrate how a RRIF can be structured using Altamira funds and savings products. Please keep in mind they are for illustration purposes only and individual circumstances such as age, investment experience, risk tolerance and total assets should all be considered. An Altamira Investment Specialist can help choose the mix that's right for you.

RRIF Asset Mix options

How to Get Started To top

1. Complete a RRIF Account Application. If you are transferring an RRSP or an existing RRIF to Altamira from another institution, be sure to complete the transfer section, ensuing that your signature is on all applicable areas. We'll take care of the rest.
2. Register for MoneyLine. MoneyLine allows for your annual minimum withdrawal payment to be deposited directly into your bank account, switches between funds, as well as unscheduled withdrawals by telephone.
3. Choose your investments and specify how you would like to receive your minimum payment or another fixed amount (e.g. annually, quarterly).
4. Sign and Return your RRIF Application. You will receive written confirmation of your plan enrolment shortly thereafter.