what kind of RRSP?

[metta2006]

Hi,
I'm going to make our first RRSP contribution this month. Should I go with GIC or mutual funds? I'm not feeling comfortable about investing in mutual funds although it is a long term investment. With the US economic crisis, I expect the stock market to crash in the US and in Canada. Would you feel comfortable to invest your retirement money in mutual funds at this volatile time.
Thanks for your input!

[nuberific]

If you're young and the contribution you're making this year is not significantly huge, I would take the "risk" and just put it into mutual funds. But if that makes you too sick to the stomach and you feel so strongly that the North American economy is going to crash, then why not invest in international mutual funds?

I would only put my money into a GIC if I needed it within a few years (say.. three or less) for something like purchasing a vehicle, a house, or furthering education where you can't risk your money dropping like a brick for a short time.

[Thalo]

It's funny how people fret about buying mutual funds now, when the market is 10% cheaper than it was last summer, when everyone was gung ho about mutual funds. Think of it this way, it is now 10% safer to buy equities than it was in June or October, when markets were at their highs. You're buying future returns, not past returns.