That doesn’t sound right, are you sure? The choice for investing in the bonds usually looks very similar to the others. Not saying you’re wrong, just that it is peculiar.
I’m Canadian, so when I transferred one of the RRSPs to my bank after I left that job, the bank showed me the paperwork that stated the RRSP had to be invested in stocks.
Ah, okay. I don’t know how it works in Canada. In the US our 401ks are more like mutual funds. We have a few options we can choose. Many of them track popular stock indices (like S&P 500). Our IRAs can invest directly into stocks though.
I also don’t know if you have to invest in the Canadian stock market or can invest in any, but there are definitely ETFs (which you buy and sell as stocks) that track bonds. So even if you can’t directly get bonds you can still essentially get bonds.
The scope of this is a little more in depth than I’m prepared to write in a Lemmy comment right now, but you can get many different types of bonds as ETFs. You can get target date ones that are the closest to the traditional bond experience (guaranteed return if you hold until maturation). You can get ETFs that are a mix of government bonds. You can even get ones that are a mix of all types of bonds (including corporate bonds).
All that to say, if you must invest “in stocks” you can still probably get some that are close to bonds.
You can invest in bonds instead if you want to. Less risk, less reward.
I’m in my 30s so my investment portfolio is around 90% stocks and 10% bonds at the moment.
According to the terms (both are from former employers) the stock market is it. I have no other options.
That doesn’t sound right, are you sure? The choice for investing in the bonds usually looks very similar to the others. Not saying you’re wrong, just that it is peculiar.
I’m Canadian, so when I transferred one of the RRSPs to my bank after I left that job, the bank showed me the paperwork that stated the RRSP had to be invested in stocks.
Ah, okay. I don’t know how it works in Canada. In the US our 401ks are more like mutual funds. We have a few options we can choose. Many of them track popular stock indices (like S&P 500). Our IRAs can invest directly into stocks though.
I also don’t know if you have to invest in the Canadian stock market or can invest in any, but there are definitely ETFs (which you buy and sell as stocks) that track bonds. So even if you can’t directly get bonds you can still essentially get bonds.
The scope of this is a little more in depth than I’m prepared to write in a Lemmy comment right now, but you can get many different types of bonds as ETFs. You can get target date ones that are the closest to the traditional bond experience (guaranteed return if you hold until maturation). You can get ETFs that are a mix of government bonds. You can even get ones that are a mix of all types of bonds (including corporate bonds).
All that to say, if you must invest “in stocks” you can still probably get some that are close to bonds.