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Dow Climbs to Record High as Tech Sell-Off Weighs on Nasdaq, S&P 500

Wall Street ended the week on a mixed note as the Dow Jones Industrial Average pushed toward a fresh record , while the S&P 500 and Nasdaq slipped amid renewed weakness in technology stocks . The divergence highlights a growing rotation away from high-flying tech names into more traditional value and cyclical sectors. The Dow rose about 0.2% , extending gains after an earlier surge of nearly 650 points. Investors piled into banks, industrials, and consumer staples, driving the blue-chip index higher. Meanwhile, the S&P 500 dipped 0.1% after briefly crossing the 6,900 mark for the first time, and the Nasdaq fell 0.3% , continuing its slide from earlier in the week. The sell-off in tech was sparked by disappointing earnings updates from Broadcom and Oracle , which reignited concerns about AI-related overvaluations . Broadcom’s shares tumbled nearly 8% despite beating quarterly earnings expectations, as investors worried about tighter profit margins and a lack of clarity on AI-...
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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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