Registered Retirement Income Funds (RRIFs) have a place in many retirement plans, but they’re not right for everyone. You have to look at the big picture. 

Tip: If you have a low income, you may need to get some professional advice because a RRIF may not be right for you.

How can a RRIF help me meet my financial goals?

To decide if a RRIF is right for you, first review all your income sources and determine how much income you need from the RRIF. Does your spouse have savings and pension income? How much guaranteed income do you have from government plans, and so on?

Once you know what income you need your RRIF to provide, it's time to choose which investments will best help you meet that target. Before you decide, ask yourself:

• Are you comfortable with the risk of those investments?
• If you want to choose safer investments, will you make enough money to keep up with inflation?

Remember, your money has to last 20, 30, or more years. To get enough growth potential, you may have to accept more risk.

What other choices do I have?

What if risk is not for you, and the only way you’ll sleep at night is with a secure, fixed income? You may want to buy an annuity instead of a RRIF. Or, you can combine your RRIF with an annuity, if that works better for you. You may want to consult an adviser to make sure you know about all the best choices for you.

A RRIF can also help you with your taxes and estate planning after you retire. Make sure you understand these advantages and how to make them work for you. Leaving your RRIF to the right family member may save a lot of tax after your death.


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