RRIFs

Like an RRSP, a Registered Retirement Income Fund can be guaranteed or not guaranteed.

In the year that a person turns 71, they must convert all of their RRSPs to a RRIF or an annuity. RRIFs are a good choice because of their flexibility.  RIFFs act like a pension, giving you a steady flow of income with a beneficiary. 

RRIFs pay a desired level of income to the owner until the principal is used up. RRIF income is fully taxable but the earnings generated from the RRIF are not taxable.