Quote:
Originally Posted by flylock shox
Alright kids. Let's say I'm a dude who's looking to max out his RRSP contributions for last year (relatively high income), anticipating an extended period of unemployment beginning some time this year (relatively low income). Let's also say I'm looking at a TFSA.
Where do I, as a dude, invest my RRSP money? How about the TFSA money?
This is all, of course, totally hypothetical.
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If your income puts you in the 32% tax bracket in Alberta or higher, the RRSP is the better choice. Lower income makes the TFSA better. I've seen a federal gov't study that says this, and I agree with it.
I think the economy will start to improve near year end. The market tends to lead the economy by about half a year. I think young folks with lots of years who are talking GICs or going into cash for a couple of years are crazy. When the market recovers, it tends to make up a third of what was "lost" in the downturn within the first 40 days of the recovery. I don't think the recovery will happen immediately but I would DCA in over 2-4 months, so that in four months your fully invested.
Hell, I'm in my 50s so theoretically should be more conservative, but I absolutely feel that in a couple of years we'll recognize the wonderful opportunity that existed right now. My RRSP contrbutions right now (I do these monthly through the year) and my TFSA contribution are going into equities. And I'm probably way older than you are.
That's my two cents.