What do you do when you’re well into retirement and your portfolio is no longer keeping up with expenses? This is the situation Jonathan,* 83, and Ellen, 76, worry they are facing. The Alberta-based couple are both in good health and expect to live well into their nineties. They have built up a healthy, professionally managed balanced and diversified portfolio with an asset allocation of 60 per cent bonds and 40 per cent equities including alternative investments for Jonathan, and 55 per cent equities and 45 per cent bonds for Ellen.

The portfolio includes $380,000 in tax-free savings accounts (

TFSAs ), $1.3 million in non-registered accounts and $4.7 million in registered retirement income funds (

RRIFs ). It generates about $670,000 in investment income each year ($305,000 for Jonathan; $363,000 for Ellen). They also own a home valued at $1.4 million.

“Our accountant says that we are RRIF rich and has put us on an accelerated program where we are withdrawing more from our RRIFs than the minimum requirement with the idea that the RRIFs be completely drawn down by my age of 90,” said Jonathan. “The theory being that this will put us in the most favourable tax brackets and lower the amount of tax payable by our estate. However, minimizing tax now for the purpose of leaving a legacy is not an issue for us.”

The couple withdraw $200,000 a year for living expenses and taxes. Over the past three years, returns for Jonathan’s holdings have averaged 1.8 per cent while Ellen’s investments have averaged 2.5 per cent. During this same period the total value of the couple’s assets has decreased significantly, exceeding their withdrawals.

“If the capital base keeps going down at this rate, then I have some concern,” said Jonathan. “Should we now start taking the minimum amount from our RRIFs with the idea that we should preserve the capital as much as possible?”

What the expert says

Jonathan and Ellen are worried their portfolio is not earning an adequate rate of return to offset their annual withdrawals, but this may be a case of Jonathan reviewing their combined portfolio when the tariff chaos hit equity markets around the world, said Graeme Egan, a financial planner and portfolio manager who heads CastleBay Wealth Management Inc. in Vancouver.

“Jonathan and Ellen should be getting quarterly portfolio performance (information) from their adviser showing returns for the most recent quarter, the last six months, one year and since inception, with the focus on since-inception performance data,” he said.

“If Jonathan is just comparing year-end to year-end values without adjusting for RRIF withdrawals then that is not an accurate portfolio performance calculation,” said Egan.

The good news: “June was a stellar equity recovery month, which should improve their long-term since-inception return after fees and help to offset their RRIF withdrawals so far in 2025,” he said. Egan said he believes Jonathan and Ellen’s finances are in good shape, well managed and should be able to continue to deliver the returns they want.

Given Jonathan’s age, an asset mix of about 60 per cent fixed income and 40 per cent equities is appropriate, said Egan. “Though I would suggest at least a 70 per cent fixed-income exposure and exclude any alternative investments. Ellen’s higher exposure to equities is likely due to her younger age. This, too, is appropriate.”

When it comes to their accelerated RRIF withdrawals, Egan agreed with Jonathan and Ellen’s accountant that this is the right strategy.

“Any surplus they don’t need can be re-invested into their respective TFSA accounts if they have contribution room each year, and then their respective non-registered accounts. The RRIF withdrawals combined with their CPP (

Canada Pension Plan ) benefits should more than meet their spending needs long-term,” said Egan.

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“To gain confidence in this strategy, they could request their adviser map out best- and worst-case projections in terms of drawing down all investments by the time Ellen is 95, at which point she will have likely downsized, freeing up capital from the sale of their principal residence.”

*Names have been changed to protect privacy. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).