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Locked-in Retirement Account (LIRA)

Locked-in Retirement Account (LIRA)

Life Income Fund (LIF)

LIRA - is a savings tool specially designed to receive the amounts acquired under a pension plan (or retirement plan). If you leave or lose your job, the locked-in amounts you have accumulated in your ex-employer’s pension plan may be transferred to a LIRA.

 

Under the regulations, a LIRA cannot be redeemed under any circumstances and must be converted to a life income fund (LIF), or another retirement income instrument by December 31 of the year you turn 71.

Registered funds eligible for arms-length mortgage investments: RRSP, RESP, LIRA and TFSA.

By opening a self-directed account with one of the financial institutions listed below, the LIRA plan becomes the mortgage holder. All payments are directed back to the self-directed LIRA accounts and your entire profit is sheltered from tax. All payments are directed back to the self-directed LIRA accounts and your entire profit is sheltered from tax. Financial institutions such as Olympia Trust, National Trust and B2B Trust are an approved under the National Housing Act. They become trustee to administrating your LIRA mortgage.

LIRA account with Insurance Financial Institutions gives you extra protection and guarantees on your initial investment and protect your savings against potential creditors. Flexibility of your investment options plus advantage of integrated savings plans that combines all of your savings objectives: investments, saving for special projects, retirement savings and retirement income.

For a free consultation please call: (416) 953-9947.

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