It’s an ideal time for adopting the Number One defensive investing strategy for retirees

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It’s an ideal time for adopting the Number One defensive investing strategy for retirees
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A roundup of investment ideas for active investors

The best way to protect your retirement savings from a market crash is to safely park enough money to cover your income needs for two to three years.

A feature of every stock market crash I’ve seen as a personal finance and investing writer is the senior distraught over the idea of having to sell hard-hit stocks and equity funds to cover the minimum annual required withdrawal from a registered retirement income fund. In both the 2008 and 2020 crashes, the federal government allowed a 25 per cent reduction in the minimum RRIF withdrawal for those years.

You could keep this money in a high interest savings account, where rates have recently climbed to between 1.5 and 2 per cent at best among alternative bands and credit unions. If you have the financial flexibility to lock money into a GIC, the best one-, two- and three-year rates in mid-May were 3.35, 3.95 and 4.1 per cent, respectively.

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