If you’re afraid the trade war will crash stocks, you’ve failed financial planning — SkimNews
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- S&P/TSX Composite Index posted a 16% YTD total return to Aug. 31, following gains of 31.7% in 2025, 21.7% in 2024, and 11.8% in 2023, even as the trade war intensified over the past month.
- U.S. tariffs on Canadian and other imports in March-April 2025 pushed stocks down roughly 10% in the first eight days of April alone, prompting retirees to ask whether the government would ease mandatory RRIF withdrawals.
- The federal government offered token partial RRIF withdrawal relief during past crises but provided no break during the April 2025 downturn, according to Carrick.
- Carrick recommends a 3-year safe-asset buffer, with money market ETFs yielding about 2.4% and alternative-bank GICs paying 3.4% for one year and 3.8% for two years.
- Bonds lost more than the stock market during high inflation four years ago and now face strain from high U.S. government debt levels, weakening their traditional role as portfolio diversifiers.
- Nervous retirees should lean more heavily on GICs and money market funds, Carrick writes, since bonds may no longer reliably cushion stock declines.
Why it matters: Canadian retirees facing mandatory RRIF withdrawals risk locking in losses by selling stocks at the bottom of a downturn. Carrick's 3-year safe-asset buffer at 2.4-3.8% yields offers a concrete cushion that preserves stock holdings for rebound, but his own warning about bonds undermines the traditional 60/40 retirement playbook many retirees still rely on.
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