Investing

Investments

Mount Lehman Credit Union offers a wide range of investment options including Term Deposits, RRSPS, RRIFS and LIFS. Each product is individually designed to meet the needs of our membership.

Registered Retirement Savings Plan (RRSP)

This is a government approved plan through which you save money for your retirement years. Contributions are tax deductible and income earned is sheltered. Anyone with earned income is eligible to contribute to an RRSP, even if you are not taxable. Members may also choose to invest in a spouse’s or common-law partner’s name and they will still receive the benefit of the deduction.


Your notice of assessment from CRA received after filing your tax return will state the amount of your allowable contribution for the next year.

Registered Retirement Income Fund (RRIF)

There is no minimum age for the purchase of a retirement income fund, except with most locked-in RRSP and LIRAs. You must roll your RRSP’s into RRIF’s before the end of the calendar year in which you turn 71. There are no tax implications when transferring your RRSP to a RRIF. Each payment you receive from your RRIF, the withholding tax will be deducted automatically and remitted to CRA on your behalf.

Life Income Fund (LIF)

A LIF fund is locked-in under pension legislation. It is a non-commutable RRIF to the end of the year the holder turns 80, by which time the remaining funds must be used to purchase a life annuity. It then has the same mandatory minimum payments apply as with the RRIF, however with a LIF there is also a maximum payment amount each year to ensure certain remaining percentage of value at the age of 80.