Here’s one of the personal finance questions that have landed in our inbox:

My question relates to Registered Retirement Income Funds ( which I assume are required by age 71). • Does an RRIF have to be with an insurance company? • May RRIFS be divided over several companies? • Are RRIFS insured against bankruptcy of the RRIF holding companies? • Are there different types of RRIFS? As my parents lived through the depression, I often heard about savings being wiped out through bankruptcies. Reading that some insurance companies are not doing well financially, I am particularly conscious of the vulnerability of my savings/ investments. I was comfortable with the idea of withdrawing from my RRSPS after I was retired for big ticket items such as a strata special assessment or particular medical needs. My impression is that I will now be locked in. So, say, at the age of 73 I get a special assessment, I will not be able to access more money than is set out in the RRIF dispersal and I will have to borrow money and pay interest. Would you be able to address these issues? Vancouver Sun personal

finance reporter Tracy Sherlock posed this question to investment portfolio manager Adrian Mastracci. Here’s what he had to say: The RRSP must be converted, likely to an RRIF, by Dec. 31 of the year where

the holder turns 71. The real advantage offered by RRIFS is significant flexibility. Each investor situation can be customized, year by year. Investors can choose the amounts withdrawn above the minimums, the frequency of withdrawals and the investments. Investors have many

choices as to account providers. An RRIF can be opened at several firms such as banks, credit unions, trust companies, insurance companies, brokerages and portfolio management firms. One key is to understand the ongoing account and transfer fees. Your RRIF can be divided across several providers. However, most investors can make all their investments and allocations from one RRIF account.

Additional accounts may result in duplication of investments, more costs and lesser economies of scale.

Our RRIF clients have one

RRIF account per spouse

and receive payments via electronic funds transfers. Your RRIF should survive the bankruptcy of the RRIF provider. Consider the provider

as the custodian of your investments, segregated from the provider’s operations. Exercise prudence by understanding the Canada Deposit Insurance Corporation rules ( see www. cdic. ca) for your

cash savings and GICS.

The account holder can

withdraw funds, above the minimum draws, for any purpose like a strata special assessment. There must be sufficient cash in the RRIF account, or

cashable investments to

facilitate the withdrawal. All amounts withdrawn from a RRIF are 100- percent taxable as income.