Q: I wish to build a 3 year cash reserve to cover market fluctuations in retirement. Looking for liquidity and safety, and ease of use. I am considering HISA, money market funds, GIC's or Bonds ?
My account is at Investorline so would have to be available through them. Are any of these preferable or do you have other suggestions?
My account is at Investorline so would have to be available through them. Are any of these preferable or do you have other suggestions?
5i Research Answer:
We do not know all brokers' product availability but we would be very comfortable with HISA, CASH, PSA, ZMMK. Yield and safety are very similar. GICs will give investors a higher yield if one is willing to lock in. They are also of course guaranteed up to $100,000. Note the ETFs are not technically guaranteed. One can also get a guarantee with Canada T Bills, but rates will be lower.