Learning about Locked-in Retirement Accounts

Every industry uses a set of acronyms and the financial industry is no different.  When is comes to Locked in accounts, there are LIRAs and LIFs.

What are locked-in accounts?

Locked in accounts are simply money that originates from a pension plan.  As long as you are employed by a company or organization with a pension, you money stays in that pension.  There are two kinds of pension plans – defined benefit plans and defined contribution plans.

But when you leave that company, you may have the choice to move the money into a personal plan.  Many people assume you can move pension money into a RRSP but that can only happen if it is a relatively small amount of money.

To read more about LIRAs and LIFs, read the whole article at Canadian Finance Blog.

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Pensions provide safe, guaranteed income in retirement

Jim Yih is a Fee Only Advisor, Best Selling Author, Financial Expert and a syndicated columnist. He is a sought after financial speaker on wealth, retirement and personal finance. For more information you can visit his any of his other websites www.WealthWebGurus.com and www.retirehappy.ca.

Posted via email from JIM Yih