A client, widowed at 62, is transitioning into retirement. Her primary goal is to ensure a stable and predictable income stream while preserving capital as much as possible. She holds a significant portion of her assets in a non-registered investment account and a smaller amount in a newly converted RRIF. Which decumulation strategy would best align with her objective?

Question: A client, widowed at 62, is transitioning into retirement. Her primary goal is to ensure a stable and predictable income stream while preserving capital as much as possible. She holds a significant portion of her assets in a non-registered investment account and a smaller amount in a newly converted RRIF. Which decumulation strategy would best align with her objective?

Answer options:

• Aggressively draw from the RRIF first to minimize future RRIF minimum withdrawals. ✅ Implement a 'bucketing' strategy, allocating funds to different time horizons and risk profiles to support planned expenses.
• Withdraw evenly from all accounts annually to maintain proportional balances.
• Invest entirely in high-growth equities to maximize potential returns, then liquidating as needed.

Correct answer: Implement a 'bucketing' strategy, allocating funds to different time horizons and risk profiles to support planned expenses.

Explanation: A 'bucketing' strategy helps manage decumulation by segmenting assets into different time frames (e.g., short, medium, long-term needs) and investing them accordingly, providing both income stability and capital preservation. This directly addresses the client's need for predictable income and capital preservation.