(NC)—If you're approaching retirement, it may be time to think about converting your Registered Retirement Savings Plan (RRSP) from a vehicle for savings to a source of retirement income. This is legally required by the end of the year in which you reach age 69.
One of the choices you have is to set up a Registered Retirement Income Fund (RRIF). A RRIF turns your RRSP investments into an income stream to last throughout your retirement years. When you convert all or some of your RRSP to a RRIF, you still control and invest your retirement savings, and the income generated within the RRIF continues to grow tax-free. However, you must withdraw a minimum amount of money from a RRIF every year, and this money is taxed.
There are many options to consider, not just RRIFS, so it's important to do your homework. A new information product called Consumer Issues for Seniors is chalk full of reliable, accurate and trustworthy information on many consumer issues facing seniors today, including RRIFs and other consumer choices for seniors. Federal, provincial and territorial government representatives responsible for consumer affairs produced the information which is available at www.cmcweb.ca/awareness.
- News Canada
No comments:
Post a Comment