Stock news for investors: Couche-Tard profits rise as Lululemon cuts outlook Sep 5th
Stock news: Couche-Tard and BlackBerry post gains, Metro flags strike impact Jun 27th
Stock news for investors: Spin Master, Empire, and Roots make major deals + MORE Aug 22nd
August CPP, OAS, and Veteran Disability Pension payment dates are here + MORE Aug 29th
How much cash should you keep in your portfolio?
– moneysense.ca
Cash is rarely going to remain steady within your accounts, but you may want to have a target for it, just the same as you would for stocks and bonds. How much depends on several factors and can be a percentage or a dollar amount.
Accumulating
If you are in the accumulation phase, new deposits should result in new cash to be invested on a regular basis. This is also an opportunity to scoop up any cash that has accumulated from dividends, interest, and other distributions to invest as well.
Whether you should maintain an intentional cash allocation depends. If the account is a registered retirement savings plan (RRSP) or similar retirement plan for many years from now, there may be no reason to hold a cash allocation.One exception might be if you intend to use the Home Buyer’s Plan (HBP) and take an RRSP withdrawal for the purchase of an eligible first home. But barring that, you should probably keep an account meant for the long term fully invested.
Featured RRSP Accounts
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Featured RRSP Accounts
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EQ Bank
Build your retirement savings with 1.50% interest, tax-deferred contributions and zero fees.
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Registered GIC rate
Earn a guaranteed 2.75% in your RRSP when you lock in for 1 year.
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Best RRSP rates
See our ranking of the best RRSP accounts and rates available in Canada.
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Why trust us
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada…
In defense of the “dumb” purchase
– moneysense.ca
Every few months, the internet rediscovers the same financial villain, and it is almost always the daily coffee. Apparently, somewhere between your morning latte and your retirement account lies the reason you are not yet financially free.
I know this argument well, because I spend a great deal of my time around people who work in money. Financial counsellors, planners, advisors, and accountants—all of them people who genuinely care about helping Canadians make smarter decisions. To be fair, they are not entirely wrong. Small expenses really do add up, lifestyle creep is real, and mindless spending can quietly erode financial stability over time.
But somewhere along the line, something went sideways in the way we talk about spending. Personal finance stopped being about building a sustainable life and started becoming an endless optimization exercise, one in which every dollar must be justified, maximized, and stripped of emotion. And sometimes, the spreadsheet is simply wrong.
My dumb purchase
Mine is a daily Tim Hortons medium black decaf…
