When thinking about investments for any savings goal (regardless of whether you will hold them in a registered plan like an RDSP), you should keep in mind your personal and financial circumstances and risk tolerance. Although we can’t provide advice on choosing specific investments, we can help you understand the types of questions you need to ask when choosing investments for any financial goal.
- What are my goals? Are you looking for safety, income or growth from an investment? You may be looking for a combination of these.
- How long do I plan to hold my investment? Depending on your time horizon (short, medium or long), you may consider different types of investments.
- What are the risks of this investment? Generally, the higher the potential return of an investment, the higher the risk. Understand the risks of each investment you consider, and understand the risk-return relationship.
- How does the investment work? Do you understand the investment enough to explain it to someone else? Ensure you fully understand how the product works before you invest.
Answering these questions can help you choose an investment asset mix that is right for your personal situation. You may consider speaking with a financial advisor who can help you understand your options and choose your investing strategy.