Locked Investments

If you are looking for a reliable retirement income flexibility with the advantage of locking some of the locked-in funds, we have the perfect solution for you.
Locked-in plans happen when employers and employees’ vested contributions and interest are transferred into a Registered Retirement Savings Plan until a specified period is obtained depending on the applicable contract.

Are you worried about financial security and retirement period?

People with pension savings often prefer the transfer of their assets to locked-in plans like Life Income Fund. Locked in restrictions can inconvenience retirement income planning flexibility. With unlimited withdrawal limits, thousands of pension dollars can be unlocked while still protected from taxes.

This is a situation whereby an investor has been restricted by laws and regulations to trade for security without having met all the requirements stipulated by the signed contract. While some of the plans may be warranted and advantageous to the investor like in terms of preventing unfair trading advantages, other plans often stagnant growth.

Locked-in versions of a Registered Retirement Savings Plan (RRSP) to which no contributions can be made include:

• Locked-in retirement accounts
• Locked-in retirement saving plan
• Restricted locked-in saving plan

Locked-in versions of RRIFs where no contributions can be made and withdrawals are subject to annual minimums and maximums include:

• Life Income Fund (LIF)
• Locked-in Retirement Income Fund (LRIF)
• Prescribed Retirement Income Fund (PRIF)
• Restricted Life Income Fund (RLIF)

Locked-in securities are freedoms to employees under incentive programmes to encourage loyalty and great performance. Ideally, the employee is granted these programmes but may not execute or use any of them until the time duration stated elapses. Sometimes the shares may have a period that they change ownership or tax status.

Some companies initiate locked-in investments when it first launches the company to the public as a way to guarantee the security of the shares held by original members of the team. This move ensures that the members do not transfer or sell shares during the IPO period.

• Availability of the freedom of diversification.
• Access to a range of investment options that are limited in a pension plan.
• Helps avoid uncertainty with respect to retirement income.
• Certain jurisdictions may permit a client to unlock a lump sum amount as a one-time even.

The investment is best suited for investors who:

• Have left a former employer and have vested contributions.
• Require diversification in their retirement savings.
• Are concerned about the stability of their retirement savings with their current employer.
• Want more control over their investments.