Gordon Pape: Converting Your RRSP to a RRIF

A reader wants to know: Is the Mawer Balanced Fund a good choice for my wife’s plan?

Q – 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 per cent into GICs or cashable GICs. Look forward to your answer. – Robert B.

A – I like the Mawer fund and continue to recommend it. 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.