What is NOT true regarding RRIFs compared to straight life annuities?

The statement that is not true regarding RRIFs compared to straight life annuities is that with a RRIF, the investment risk lies with the policy provider. In reality, RRIFs (Registered Retirement Income Funds) are designed such that the annuitant retains the investment risk. This means that the investor in a RRIF is responsible for the performance of the investments within the fund, including the potential gains and losses that may occur based on market conditions.

In contrast, straight life annuities transfer the investment risk to the insurance company providing the annuity. When an individual purchases a straight life annuity, they pay a lump sum in exchange for guaranteed income for life, regardless of how long they live. Because the insurance company manages the investments and assumes the risk of payout, the individual does not bear the investment risk associated with the annuity.

The other statements highlight key features of RRIFs and annuities. RRIFs offer more flexibility in terms of withdrawal amounts and timing, allowing annuitants to adjust their income according to their needs. Meanwhile, one of the primary benefits of annuities is the provision of guaranteed income for life, ensuring a steady cash flow for the annuitant regardless of market conditions or investment