Published July 5, 2026 Your morning rundown on the Canadian economy, markets, and money moves — TSX hits a record close, CUSMA talks roll past the deadline, the first CGEB payment lands, and what to expect ahead of the Bank of Canada's July 15 decision. 1. TSX closes at a record high on gold-miner strength The S&P/TSX Composite climbed 0.9% to close at a record 35,275 on Friday, July 3, powered by gold mining stocks. Gold prices firmed after U.S. nonfarm payrolls for June came in at roughly half the expected pace, fuelling bets that the Federal Reserve could turn more dovish. Agnico Eagle, Wheaton Precious Metals, and Barrick all posted solid gains, while financials like Scotiabank and BMO also moved higher on easing oil-supply concerns. Why it matters: if you hold Canadian equity index funds in your TFSA or RRSP, resource and financial-sector strength has been doing a lot of the heavy lifting this year — worth knowing if your portfolio feels more concentrated than you'd...
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:
- Choose a Financial Institution: Select a bank or financial institution to hold your RRIF.
- Transfer Funds: Move your RRSP funds into the RRIF. This process is straightforward and can be done with the help of your financial advisor.
- 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:
- Select an Insurer or Financial Institution: Choose where you want to hold your LIF.
- Transfer Funds: Move your LIRA funds into the LIF. This can be done with the assistance of your financial advisor.
- 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.
Comments
Post a Comment