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  5. VBAL: This is a question about composition of a rrif. [Vanguard Balanced ETF Portfolio]
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Q: This is a question about composition of a rrif. I am 77: as I age I can no longer rationally think of long term holdings ie 10 years. In your opinion would it be wiser to shift to ETFs . I probably have enough saved to last my twilight years. I prefer the clarity of stocks but I would also prefer to be ten years younger.
Thanks for your wisdom
Asked by Tom on August 02, 2023
5i Research Answer:

Such decisions do need to be personal, and our Portfolio Analytics platform might be able to help here. The issues noted in the question become a trade off of simplicity and goals. ETFs will provide instant diversification and less volatility than stocks, and many are one-stop solutions (such as VBAL). For simplicity and ease-of-mind they are hard to beat. ETFs are also very easy and simple to sell when one needs to make required withdrawals for a RRIF. This simplicity though simply comes with a cost (the fees). In addition, tax management can be a bit trickier (with a group of stocks one can sell losers to reduce overall tax burden). For most investors, we think a mix of stocks and ETFs works best, but for those looking to simplify, an all-ETF portfolio, properly set to one's own asset allocation goals, can work very well.