RRIF Strategies

Question: At age 60 I’m going to collect my Canada Pension Plan and convert my Royal Bank RRSP into a RRIF.

I will be putting all my total $100,000 into the Royal Monthly Income Fund which is paying 4.5%.

When my first year withdraw must be 7.38% is this a good move or should I invest a different way?


Your math is off. At age 60, the formula for the minimum annual withdrawal is 90-60 divided into the value of the RRIF. So your minimum is $3,333.33 the first year.

Your investment will cover that with room to spare. But keep a close eye on things because as each year passes you will have to withdraw more. Try to avoid dipping into capital for as long as possible.