A 25 year old individual with $10,000 invested in an RRSP and an average risk tolerance should be concerned about:
A) taxes, and should invest 70% in equities and 30% in bonds.
B) taxes, and should invest 30% in equities and 70% in bonds.
C) inflation, and should invest 70% in equities and 30% in bonds.
D) inflation, and should invest 30% in equities and 70% in bonds.
E) taxes and inflation.

Question

Quizplus · Accepted Answer

Given the individual's age and average risk tolerance, concern about inflation is pertinent as they have a longer time horizon to invest, allowing them to take on more risk with a higher allocation in equities (70%) to outpace inflation over time.

A 25 Year Old Individual with $10,000 Invested in an RRSP