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Paying Cash with Canadian Currency- The action of pulling canadian money out of a wallet. Twenty dollar bills.
Paying Cash with Canadian Currency- The action of pulling canadian money out of a wallet. Twenty dollar bills.
(Denis Pepin/)

Cash is king for RRIF, RESP investors

The growing level of concern about a stock market correction offers a reminder of a key lesson from the last stock market crash for people managing RRIFs and RESPs: If you know you will have to withdraw money from your investments in the near future, keep that money safe.

When the market crashed back in 2008, there was a tremendous amount of concern among seniors about having to sell hard-hit stocks or equity funds to pay for the mandatory annual withdrawal money from their registered retirement income funds. The federal government ended up trying to calm seniors by reducing the minimum withdrawal by 25 per cent for that year.