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Europe at a Crossroads: Trump’s Stark Warning in Davos

                                              A lit up sign put up over Davos ahead of President Trumps arrival At the World Economic Forum in Davos, President Donald Trump delivered a pointed critique of Europe’s current trajectory, arguing that the continent is “heading in the wrong direction.” His remarks added a sharper edge to a summit already defined by global uncertainty and competing visions for the future. Trump’s comments focused on what he described as Europe’s economic stagnation, political fragmentation, and policy choices around migration and energy. He suggested that these decisions were weakening Europe’s long‑term stability and diminishing its global influence. Framing the issue in broader terms, he emphasized that global prosperity is closely tied to American economic strength, asserting that a strong United States remains essent...
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Navigating Retirement: Converting RRSPs to RRIFs and LIRAs to LIFs

 


As you approach retirement, understanding how to convert your Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF) and your Locked-In Retirement Account (LIRA) to a Life Income Fund (LIF) becomes crucial. Here’s a concise guide to help you navigate these transitions smoothly.

Converting RRSP to RRIF

By the end of the year you turn 71, you must convert your RRSP into a RRIF. This conversion is mandatory and ensures that your retirement savings start providing you with a steady income. Here are the steps:

  1. Choose a Financial Institution: Select a bank or financial institution to hold your RRIF.
  2. Transfer Funds: Move your RRSP funds into the RRIF. This process is straightforward and can be done with the help of your financial advisor.
  3. Set Withdrawal Schedule: Decide on the frequency of your withdrawals—monthly, quarterly, semi-annually, or annually. Note that there is a minimum amount you must withdraw each year, but no maximum limit.

Converting LIRA to LIF

Similar to RRSPs, LIRAs must be converted by the end of the year you turn 71. LIRAs are typically created from employer pension plans and have restrictions on withdrawals until retirement. Here’s how to convert a LIRA to a LIF:

  1. Select an Insurer or Financial Institution: Choose where you want to hold your LIF.
  2. Transfer Funds: Move your LIRA funds into the LIF. This can be done with the assistance of your financial advisor.
  3. Determine Payment Options: Decide on your payment schedule. Unlike RRIFs, LIFs have both minimum and maximum withdrawal limits to ensure the funds last throughout your retirement.

Key Considerations

  • Tax Implications: Withdrawals from both RRIFs and LIFs are taxable. Plan your withdrawals to manage your tax liabilities effectively.
  • Investment Choices: You can continue to hold investments within your RRIF or LIF, similar to how you managed them in your RRSP or LIRA.
  • Financial Advice: Consulting with a financial advisor can help tailor these conversions to your specific retirement goals and needs.

By understanding these processes and planning ahead, you can ensure a smooth transition into retirement, securing a steady income stream for your golden years.


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