What financial strategy would best allow Matt to withdraw necessary funds for daily living expenses while caring for his terminally ill wife?

The strategy of withdrawing money from RRSPs as needed aligns best with Matt's immediate financial requirement for daily living expenses while caring for his terminally ill wife. This approach provides him with the flexibility to access funds precisely when they are needed, which is critical given the unpredictable nature of both his wife's care needs and their financial situation.

By making withdrawals from the RRSP, Matt can control the amount he takes out and the timing of those withdrawals, allowing him to manage his cash flow effectively. This flexibility is vital during a challenging time, as it lets him avoid the risk of tying up funds in products that might not provide immediate access or require a commitment to ongoing payments.

Converting RRSPs to RRIFs, as mentioned in the first option, would require him to take minimum annual withdrawals, which might not provide the necessary flexibility to meet fluctuating expenses. Similarly, choosing a life annuity would lock in his funds and potentially provide payments that might not align with his immediate, varying financial needs. Lastly, a LRIF (Locked-in Retirement Income Fund) would also limit access to his funds, restricting his ability to withdraw amounts as needed.

Therefore, the ability to withdraw money from the RRSPs as circumstances dictate makes this choice the most