Quote:
Originally Posted by housenuts
if I foresee a recession, but want to invest in an RRSP (canadian 401k equiv) for tax purposes, can i use rrsp to invest in bonds or something more stable?
Yes, bonds, ETFs, and mutual funds are just fine. The fundamental difference in terms of what you can own or not in your registered accounts shakes down to:
1) Both TFSA and RRSP have a lot of "no's" when it comes to smaller exchanges like pink slips and such. Avoid or you get raped.
2) Don't put American dividend payers in a TFSA. Put'm in an RRSP.
3) Be sure you understand the difference in tax benefits between RRSP and TFSA. TFSA you'll NEVER pay tax on the money. RRSP you are getting the tax benefit today (in the form of your return). But when you go pull that money out when you're older, you're going to pay tax on it. The hope/expectation is you'll be pulling out less of it when you're older, thus being taxed at a lower bracket.