Where should I take RRIF funds from?

Q – Where can I ask what I should do with my RRIF ? I need to take $12,000 out in two weeks and don’t know where to take it from: an Ontario Hydro bond due 06/24/02 or any one of five mutual funds in this account. – R.O.

A – You should discuss the options available to you with a financial advisor associated with the company that administers the plan. If it is with a bank, they should have a retirement planning expert who can review the portfolio and assist you.

Your decision should be based at least in part on your portfolio balance. If you are too heavily weighted towards one particular asset class, you may want to reduce your exposure there. However, this needs to be reviewed very carefully if you are looking at cashing in equity funds because of the recent decline in the stock markets.

The best source of such withdrawals is often cash within the account. If you have no cash, take a close look at your Ontario Hydro bond, which matures next June. The annualized yield on that bond at this point if it were held to maturity is around 3%. You should weigh that in making your decision. G.P.