Open A Small RRIF Early

From Gordon Pape’s 2000 Buyer’s Guide to RRIFs and LIFs

The first $1,000 of pension income receives a tax advantage, and payments from a RRIF qualify if you are 65 or older. Set up a small RRIF early to generate just enough income to allow you to take advantage of the pension credit. Keep the rest of your money in an RRSP until you have to convert.

Gordon Pape’s 2000 Buyer’s Guide to RRIFs and LIFs, by David Tafler and Gordon Pape, is published by Prentice Hall Canada.