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Financial Services: Life Income Fund (LIF) Investment with LMBF

LIFs are investment accounts for individuals who have left their jobs where they had a pension plan. Funds and assets can be transferred over to LIF or other retirement income fund accounts to be used as eventual payout in the form of retirement income, once the account holder has reached a certain age. In Canada and Quebec, life income funds can grow tax-deferred and the owner of the account has the option of choosing their own (qualifying) investments. LMBF’s advisors can help advise you on all things to do with life income fund, from investment solutions to tailored advice based on your geographical location as to the difference in regulations that may apply to your life income fund. Start with our expert advisors today.

The Benefits of LMBF’s LIF Investment Plans

Tailored Advice

Tailored Advice

Everyone is at a different stage of life, and there are many investment and financial plans to choose from when it comes to funding your retirement. LMBF gives you tailored advice on whether an LIF is the best option for you and your circumstances.

Investment Solutions

Investment Solutions

LIF investments can vary, and it is up to the account holder what investments they may choose to include - so long as those investments qualify. LMBF can give you advice on what investments to include in your locked-in retirement funds based on your needs.

  Reasons to need LIF investment
  • You want security for your retirement income
  • You want to maximize the tax deferral
  • You want to use any remaining LIF money to purchase a life annuity
  • You want a beneficiary to receive your money after you die
  Ways that LIF investment benefit you
  • Controlled investments
  • Maximized tax deferral
  • Life income fund in Quebec may permit temporary income if your LIF is locked-in
  • Variety of income payment options

What is an LIF investment?

An LIF investment is a retirement savings account where you transfer an entitled pension into a locked-in retirement account. It will then be invested based on your choices. You cannot withdraw from your LIF investment until a minimum age or when you start retirement, but your savings can grow tax-deferred and you have control over your investments. You also have some control if your income, with a variety of ways to receive income payments.

Our Life-Income Fund Advisors

Retirement planning can be overwhelming, and even scary for some. After all, there’s a lot to thing about. With all the different retirement income options to choose from, LMBF’s advisors want to help simplify your financial goals for you and lay it out so that you can understand. We assess how an LIF can fit in your plan, provide you investment advice, and offer additional options that reflect your individual risk profile and overall future goals.

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Looking to Get Started on LIF Investment in Canada? Get Started By Discussing With LMBF’s Financial Advisors.

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Life-Income Fund in Quebec & Canada: Some Frequently Asked Questions

A: A restricted life-income fund operates very similarly to a LIF investment, but it provides a single chance where you may convert 50% of your locked-in funds to an RRSP. Otherwise, the RLIF functions similarly to an LIF, with growth potential, control over investments, and death benefits.

A: Technically, you are able to have multiple RRSP or retirement income funds accounts, but it can be challenging to handle all your investment strategies. It can also increase your risk if multiple investments have been scattered throughout multiple financial institutions and accounts.

A: Barring extraordinary circumstances, you cannot withdraw money from a life-income fund in Quebec or in Canada until a minimum age as set by your province. In Quebec, you may have the chance to qualify for temporary income provided certain events.

A: In the event the account holder were to die, any remaining balance within your LIF would be paid out to your spouse or, in their absence (or if they renounce it), to your heirs. In some cases, you may also be able to name beneficiaries who your LIF would be paid out to in the event of your passing.

A: There are maximum and minimum withdrawals for life-income funds. The maximum number changes each year, depending on the account holder’s age and the maximum federal/PBSA withdrawal. Withdrawals typically cannot be made before the age of 50.

A: It depends on what you prefer. You can choose to set up monthly payments, or you have the option of waiting until the end of the year to take out a lump sump. Note that, no matter what you choose, you will still have to pay taxes on your LIF withdrawals.