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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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.