– The only tax advantage I can think of is a situation where you need some
cash in December (Christmas bills and all) and you don’t want to receive it
from a taxable source, such as a RRIF, RRSP, or, if you’re a business
owner, salary or dividends. A TFSA withdrawal provides the cash you need at
the time on a tax-free basis. The withdrawal amount will then be added to
your contribution room in the New Year. – G.P.
– My wife has turned 71 this year and has to convert her $300,000 RRSP to a
RRIF. I was going to use the
Mawer Balanced Fund. What is your current opinion of this fund? Also, with the strong emphasis
on bonds in a rising rate environment, would my wife be better to own pure
equity funds (no bond portion) and put maybe 50% into GICs or cashable
GICs. Look forward to your answer. – Robert B.
– I like the Mawer fund and continue to recommend you discuss it with your advisor as a possible addition to a diversified portfolio. It has posted
above-average results over all time frames. But your idea of an equity
portfolio supported by laddered or cashable GICs would also work in a
rising interest rate environment and would have less downside risk than
bonds. – G.P.
is one of Canada’s best-known personal finance commentators and
investment experts. He is the publisher of
The Internet Wealth Builder and The Income Investor
newsletters, which are available through the Building Wealth website.
For more information on subscriptions to Gordon Pape’s newsletters,
check the Building Wealth website.
Follow Gordon Pape on Twitter at
and on Facebook at
Notes and Disclaimer
© 2018 by The Fund Library. All rights reserved.
The foregoing is for general information purposes only and is the opinion
of the writer. Securities mentioned carry risk of loss, and no guarantee of
performance is made or implied. This information is not intended to provide
specific personalized advice including, without limitation, investment,
financial, legal, accounting, or tax advice. Always seek advice from your
own financial advisor before making investment decisions.
BUILDING WEALTH WITH GORDON PAPE