A Registered Retirement Income Fund (RRIF) is phase two of an RRSP. You have accumulated money inside an RRSP but by age 71, you must convert the RRSP to something that creates regular income: an annuity or a RRIF.
A RRIF is more flexible than an annuity because you can invest in virtually any investment and you can always convert to an annuity later.
A RRIF can be thought of as an RRSP in reverse; instead of putting money in, you take an income out.
With a RRIF, you still maintain control over your investments. You can keep your existing RRSP investments and simply transfer them in-kind to your RRIF when the time comes.
While you do have to make a minimum withdrawal every year, the remaining balance in your RRIF continues to grow on a tax-deferred basis, just like when it was held in your RRSP.
The Lawyers Financial Investment Program also includes LIFs, which are locked-in RRIFs, for monies originating from a pension plan or locked-in RRSP (LIRA/LRSP).
