Registered Retirement Income Fund (RRIF)

A registered retirement income fund is an investment tool created by converting your RRSP into an income-producing vehicle. Your RRIF provides for periodic income, while continuing to accumulate interest on the remaining capital. It also acts as a tax-shelter for one’s funds.

Life Income Fund (LIF)

A life income fund is like a RRIF, except that it is specifically designed for individuals with locked-in pension money. There is a requirement to convert all LIFs into a life annuity at age 80.

Locked-In Retirement Income Fund (LRIF)

A locked-in retirement income fund is like a LIF, except there is no requirement to convert to an annuity at age 80, and the method of calculating the maximum payment is different.

Guaranteed Investment Certificates (GIC)also called Term Accounts

GICs provide a guaranteed rate of interest on one’s investment with high security that will bring the policyholder peace of mind. Among its numerous benefits are: the comfort of knowing one is earning a guaranteed rate of interest, and that one has the flexibility of choosing from a variety of interest payment options and terms; The term of the investment is generally between 1 and 10 years; Interest can be paid monthly, semi-annually, annually, or compounded annually and paid at maturity; GICs may be cashable before maturity subject to an adjustment.

GICs issued by insurance companies offer unique advantages over those of other financial institutions namely, creditor protection under certain circumstances where a preferred (family class) beneficiary has been named. Nominated beneficiaries in GIC contracts will receive death proceeds directly eliminating delays and costs due to probate.

Variable Investment Funds also called segregated funds, mutual funds, wrap accounts

Variable investment funds are pooled investments that provide professional management of many investors assets enabling greater diversification and easier reporting than a do – it yourself approach. Segregated funds are available from insurance companies and provide creditor protection under certain conditions and some guarantees as well as providing full exposure to the upside on investments in bonds, stocks, income trusts and real estate assets. Mutual funds offer similar exposure without the guarantees.

Life Annuities

These are contracts through an insurer that guarantee a fixed income for the life of the annuitant. This is a product that has made a return to the mainstream after the market volatility of the past decade and low current interest rate environment decreased the investment income streams of many retirees.