Bear markets: What’s a long-term investor supposed to do right now? + MORE Jul 13th

How to go about securing the best Retirement Plan in Canada.
Latest News

RRIF withdrawals: What should seniors with million-dollar portfolios do? Nov 16th

Ask MoneySense I have invested well and now I am in my 80s. My RIF is almost $3 million and is going to attract heavy taxes. My other investments are about $2 million, some with capital gains which we are going to donate to charity. Any suggestions on how to reduce the huge tax liability? Should .... More »
 pension

Making sense of the markets this week: September 17, 2023 Sep 21st

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors. U.S. inflation battle: Mission not accomplished  Despite increasing interest rates and hawkish talk from the U.S. F.... More »
 cpp

What to do with U.S. dollar RRSPs in retirement + MORE Jun 8th

Ask MoneySense I am 70 and have already turned my RSP into a RIF. However, I also have a U.S. RSP which will need to be dealt with next year at the latest. What do I do with it? Roll it into my Canadian RIF within the next year? Leave it as a separate RIF and take the necessary money from each .... More »

What is the CPP Survivor’s Pension? How can Canadians claim this benefit? + MORE Feb 15th

Ask MoneySense My wife passed away, and I heard about the survivor’s pension. Can you tell me more about this benefit and how to receive it?—Kevin What is the CPP Survivor’s Pension? Thanks for your email, Kevin. Losing a spouse or common-law partner is one of the most challenging e.... More »

The 60/40 portfolio: A phoenix or a dud for retirees? + MORE Oct 26th

For Canadian investors, one of the biggest shocks of 2022 is how poorly balanced mutual funds, exchange-traded funds (ETFs) and portfolios have performed. Investors with funds based on the classic pension fund asset allocation of 60% in stocks and 40% in bonds have been bewildered to experience loss.... More »
My husband is retired and concerned that his money that is invested in his RRSP and TFSA is fluctuating too much. He is retired and is wondering if his funds should be in a GIC account as it’s paying 4% and not losing principal. He’s concerned in this volatile market.—Rodeen

Are GICs a good idea for retirement?

As you noted, Rodeen, guaranteed investment certificate (GIC) rates have risen to levels we have not seen in over 10 years. There are one- to five-year rates that are between 4% and 5%. You may not get these rates at major banks, though, where rates are about 2% lower than that, but credit unions and trust companies generally offer a healthy premium.

Are GIC rates going up in Canada?

A year ago, GIC rates were less than 2%. The reason they are so much higher now is worth considering. The May year-over-year inflation rate was nearly 8% so the Bank of Canada (BoC) has raised interest rates to slow down spending and price increases. So, while a 4% GIC rate may seem enticing, it represents nearly a 4% negative real rate of return when adjusted for 8% inflation…

Continue Reading On moneysense.ca »

My mutual funds are doing terribly, and I know they always say that it is better to stay the course and ride out this market crash and whatever. But I’ve been thinking about divorcing my big bank for awhile now. I have RRSP with mutual funds that have high management fees with RBC, slightly better ones in Tangerine, as well as robo-advisor RRSPs in WealthSimple. If my RRSPs are tanking in RBC now anyway, is this a good time or a terrible time to divorce them and move all of my money to a robo-advisor ETF or something somewhere else?

Otherwise, I am resigned to just leaving my money there. They’re taking less now anyhow, since I’ve lost like $9,000 already. I would be grateful for any advice or any resources you could recommend to make an informed decision. I’ve been enjoying your newsletters for a long time.

—Miki 

How to remain a long-term investor in a bear market  

Miki, after reading your question I am a little concerned for you.

The way you’re describing things it sounds like you’re getting poor or quick advice with very little explanation…

Continue Reading On moneysense.ca »

Share

PinIt
Compare insurance quotes through Kanetix.ca - save time and money!