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RIT/RIF on Your Bank Statement

Andrew Goldman

Andrew Goldman has been writing for over 20 years and investing for the past 10 years. He currently writes about personal finance and investing for Wealthsimple. Andrew's past work has been published in The New York Times Magazine, Bloomberg Businessweek, New York Magazine and Wired. Television appearances include NBC's Today show as well as Fox News. Andrew holds a Bachelor of Arts (English) from the University of Texas. He and his wife Robin live in Westport, Connecticut with their two boys and a Bedlington terrier. In his spare time, he hosts “The Originals" podcast.

There is no better feeling than eyeballing your checking account, and amid all the debits for services and subscriptions you have literally no recollection of ever signing up for, spotting a credit. Better yet for money you weren't expecting. A common one that Canadians will often find is “RIT/RIF.” You'll be relieved to know that neither of these three letter words is “RID,” the brand name of a famous lice killing shampoo. So, phew. The lice people aren’t trying to give you anything!

Naturally, when money shows up your checking account, you will be in the mood to celebrate, and some will no doubt choose to celebrate by spending that money on beer for a big celebration party. That’s certainly a popular way to spend money, but sadly, it’s also the most effective way to literally flush tax refund money down the toilet.

Perhaps your RIT/RIF windfall is instead the universe’s way of encouraging you to start investing. Maybe you can get a jump on this year's RRSP contribution for your retirement. Or it’s possible you’ll want to use the money before you’re old and instead invest through a TFSA. Both accounts have their irresistible features. How you invest is between you, your accountant, maybe your partner if you have one of those, but not your pet, who would likely encourage you to invest all your money in treats! Need any help investing that tax return? We’d love to hear from you.

Looking for help investing your RIT/RIF or any other windfalls? Wealthsimple offers state-of-the-art technology, low fees and the kind of personalized, friendly service you might have not thought imaginable from a robo-advisor — get started investing now.

Last Updated August 13, 2019

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