How much stock in a RRIF

Question: In a RRIF what percentage of stocks etc. should one hold as compared to fixed-income securities like GICs or bonds? Is there a rough formula based on age and risk tolerance?


In the case of a RRIF, I recommend that you should have at least 25% of the plan in equities in order to provide some growth potential. Obviously, there is some flexibility involved here, depending on age.

For example, a young retiree (someone in their 50s) should consider holding up to half of the RRIF in a selection of carefully selected, low-risk stocks and/or equity funds. A systematic withdrawal plan can be used if desired to generate revenue from this part of the RRIF. As you grow older, the percentage of equities should gradually decrease. By the time a person reaches their 80s, the percentage of stocks may be down to near zero and serious consideration should be given to using part or all of the balance of the RRIF to buy a life annuity to ensure that you don’t outlive your income.