MRS offers Life Income Funds (LIFs) and Locked-In Retirement Income Funds (LRIFs) that allow you to access locked-in RRSP, LIRA and pension proceeds to provide you with retirement income. LIFs and LRIFs are alternatives to life annuities and allow you to make withdrawals immediately while maintaining control of your savings.

You must withdraw at least the minimum amount applicable to your LIF or LRIF each year, however, you cannot take out more than the maximum amount as determined by specific pension legislators. Tax is only paid on the amount of money that is withdrawn each year.

Planholders must terminate their LIF in the year in which they turn 80 years of age*, and purchase an annuity. MRS does not offer annuities.

An LRIF has no termination date.

*There is no age restriction for Quebec and New Brunswick.

There are a number of tried-and-true investing strategies to assist your savings and income efforts that are completely compatible with an MRS LIF or LRIF.

Income flexibility and control of your investments: LIFs and LRIFs offer complete income flexibility while allowing your savings to remain tax-sheltered and under your control. You must withdraw at least the minimum amount applicable to your LIF or LRIF and no more than a set maximum each year.

Maximize growth: By maximizing the allowable 30% foreign content component in your LIF or LRIF you can ensure diversification; you protect yourself against fluctuations in the value of our Canadian dollar; and, you give yourself the chance to earn potentially higher investment returns.

Defer taxes: Tax-sheltered savings maximize the growth of funds that are also available for withdrawal as retirement income, at which time they are taxed as income. Therefore, all interest, dividends and capital gains generated by the funds that remain in your LIF/LRIF continue to accumulate tax-free - only your withdrawals are taxable.

An MRS self-directed LIF or LRIF offers many advantages:

MRS offers a broad selection of financial products:

• More than 1,800 Canadian mutual funds, segregated funds and labour-sponsored funds.
• MRS proprietary products such as MRS GICs and MRS Money Maximizer.
• Publicly traded securities listed on the TSE, CDNX, NYSE, AMEX, NASDAQ and other markets and exchanges.
• Fixed-income products.
• Venture Capital Corporations.
• Small Business securities.

Consolidation of financial assets: Eliminate multiple LIFs or LRIFs with different financial institutions by consolidating all of your assets in one convenient location - an MRS self-directed LIF or LRIF. This strategy will allow you to truly maximize the foreign content component in your LIF or LRIF.

Consolidated reporting: MRS self-directed LIF or LRIF account holders receive a quarterly consolidated account statement and a monthly account statement whenever there is activity in the account. MRS also provides applicable tax slips for you to complete your income tax returns.

Excellent service: MRS is a leading provider of top-rated financial and administrative services.

To find out more about opening a LIF or LRIF at MRS, contact your financial advisor.