Valley First

Retirement Income Fund

This investment plan is for you if:

  • you'd like a flexible way to manage your retirement income.
  • you've got an RRSP waiting for a plan.
  • you've got better things to worry about than having enough
    money in your golden years. Like which RV to buy.


Key Features & Benefits

A Retirement Income Fund (RIF) works like an RSP in reverse. It converts your savings into income and lets you continue to shelter your investment from taxes after you turn age 71.

You are required to withdraw a minimum amount of income each year based on your age and government regulations.

Benefits at a glance

  • Can provide retirement income for life
  • Includes deposit options such as daily interest, term deposits between 30 days and 5 years, and mutual funds*
  • Allows withdrawals based on declining terms directly from the term rather than having to keep funds in the daily interest option for this purpose
  • Offers monthly, quarterly, semi-annual, or annual payments and can be tailored to suit your individual needs
  • Permits payment schedule changes at any time

Interested in finding out more? Check out our RRSP/RRIF Basics online brochure (PDF) or our Retirement Income Options online brochure (PDF)—both chalked full of great information. You will need Adobe Acrobat Reader to view these PDF documents. If you do not already have Adobe Acrobat Reader, click here to download this free software.

*Mutual funds, other securities and securities related financial planning services are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc. Mutual funds and related financial planning are also offered through Qtrade Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated.


Product Options

Term deposits

Some terms give you flexibility to choose a secure investment. You can have up to 100% of your RIF holdings in one or more credit union term deposits.

Mutual funds*

Mutual funds give you easy access to virtually every type of investment—at home and around the world. You can choose to hold a portion of your RIF holdings in mutual funds.

Meritas SRI Funds*

Choose the ethical funds solution—an opportunity to invest without compromising your values.

If you are an investor who is comfortable with making your investment decisions and would like to take advantage of a wide range of retirement investment options, a Self-Directed RIF gives you the freedom to build and manage your own RIF investment portfolio.

Life Income Funds

Key Features & Benefits

LIFs are similar to RRIFs—they are used to hold and pay out funds at retirement. The difference between the RRIF and the LIF is that the RRIF is used for transferring individual RRSP assets to a retirement income plan and the LIF is used for transferring Group Retirement Savings Plan or other employer sponsored pension assets.

  • Like RRIFs, a LIF converts your savings into income and lets you continue to shelter your investment from taxes after you turn age 71.
  • A minimum and maximum annual withdrawal is allowed, based on pension legislation.
  • The maximum limit is designed to ensure a certain amount of funds is available to provide lifetime income.


Things to Consider

When you’re considering the frequency of withdrawals from your RIF, here are some helpful tips:

  • Know how much income you want from your RRIF and the most advantageous time(s) for you to receive it.
  • Taking annual payments at the end of the year will allow you to earn the maximum growth opportunity for your RRIF investments.
  • Once you start receiving RRIF income, quarterly income tax installments may need to be paid if you’re not paying them already. If you receive annual payments at the end of the year, the income will still need to be included in your quarterly installments and you’ll end up owing tax before you actually receive the money.

When you’re considering the amount of withdrawals from your RIF, here are some helpful tips:

  • With self directed RRIFs, your investment selections should be set so that they will provide you with the funds you’ll need to meet the amount of the payments you have chosen.
  • RRIF term deposits are the most flexible for making unscheduled withdrawals.

Other things to consider:

  • If you don’t convert your RRSP to a RRIF, it is considered "deregistered" and the money you’ve saved will be paid out as cash and fully taxed as income.
  • It’s good to understand the pros and cons of the type of investments you are holding when it comes to liquidity, unscheduled withdrawals, and market valuation.

Consider investing online with our partner, Qtrade Investor—Canada’s best online broker. Contact us for more information or login to your Qtrade Investor account now.

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