What does RRIF stand for in financial planning?

RRIF stands for Registered Retirement Income Fund, which is a specific type of investment account designed to provide individuals with a steady income during retirement. It is a meaningful part of retirement planning in Canada, allowing individuals to withdraw funds in a tax-efficient manner after they have converted their Registered Retirement Savings Plan (RRSP) into a RRIF when they reach retirement age. The essential feature of a RRIF is that it must provide at least a minimum annual withdrawal, helping retirees manage their income throughout retirement while also allowing investments to continue to grow tax-deferred within the fund.

Other terms in the options provided do not accurately represent the established financial instrument recognized within retirement planning. For example, "Registered Revenue Investment Fund" and "Retirement Resource Investment Fund" are not recognized designations that relate to Canadian retirement income strategies. Similarly, "Registered Retirement Income Framework" does not represent the defined investment account regulated under Canadian tax law. Therefore, the recognition and accurate definition of RRIF as a Registered Retirement Income Fund is crucial for effective financial planning and understanding retirement income strategies.