RRSP and RRIF

Because I am taking money out of my RRSP and RRIF accounts, I like to have cash equal to 3 to 5 years of withdrawals in my account. Since I am taking money from these accounts each year I have to sell some stock to raise more money. I generally do this in April or May, but this year I have just sold stock to raise the cash in these accounts. It is currently hard to tell what the market is going to do so I rather be safe than sorry.

Once these transactions go through, I will buy some GICs with the money. Interest rates are currently very low and I no longer like to put my money into MMF Funds. To provide enough money for withdrawals over the next 3 to 5 years I have cash or near cash of 12% to 13% in these accounts. The near cash are short term GICs and Investment Savings accounts.

How I decide what stocks to sell is my dividend yield. I am selling off stocks with the lowest dividend yield. This year I am selling Saputo Inc. (TSX-SAP) and Richelieu Hardware (TSX-RCH) because of their low dividend yields. Saputo currently has a dividend yield of 1.45% and Richelieu currently has a dividend yield of 1.04%. I also sold off a small amount Manitoba Telecom Services Inc. (TSX-MBT) as this is a stock I no longer wish to hold.

On my other blog I am today writing about Bombardier Inc. (TSX-BBD.B, OTC- BDRAF) ... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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