Q&A With Gordon Pape: Should I Move My Mutual Funds to a GIC in Retirement?

In this Q&A, financial expert Gordon Pape advises a reader who is nearing retirement and is concerned about her mutual funds losing money.

Q – Will I lose my initial investment in mutual funds or just the amount that I made in the last year? I am on the verge of retirement and terrified. If the answer is yes, should I quickly switch my money into a GIC? Thanks so much for any help in answering these questions! – S.M.

A – I have no idea what mutual funds you own or how risky they are. There is no downside limit on any losses, but if you have invested conservatively, you should be ok. I never advise panic selling and the tax consequences can be severe. However, if you are truly terrified, consider selling some of your more volatile funds and moving to cash. – G.P.

Do you have a money question you’d like to ask Gordon? Send it along and then check out our Q&A section regularly to see if it was chosen for a response. Send questions to [email protected] and write Zoomer Question on the subject line. Sorry, we cannot send personal answers. 

RELATED: 

A Life’s Measure: 3 Ways to Find Meaning and Purpose in Retirement

How Older Canadians Are Changing the Way We Think About Retirement

Study: Older Adults Both Overestimate and Underestimate Risks They’ll Face in Retirement