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Canajun Finances Home » RRSP or Mortgage Then?

RRSP or Mortgage Then?

I wrote this before the dawn of the TFSA, so I have spruced it up with where your TFSA might fit into this equation.

The data I mention are in the following posts: Case 1: Put It In The Bank , Case 2: Refund to RRSP, Case 3: Refund to Mortgage

I think what the plethora of numbers over the past few days has show is that:

  1. Putting money in your RRSP is a good thing. The money is not just retirement money, it is “catastophe” money too, so if you have RRSP room, I would say use it.
    • Remember, that your TFSA is a better choice as an emergency fund.
  2. Should I pay off my mortgage or max out my RRSP? Yes is my answer. Do either, but do at least one, is my advice. There isn’t a wrong answer here folks, both are good things and if you can do it, good for you!
    • Of course max’ing out your TFSA might make more sense now.
  3. An ideal “mixed” idea is to put your money in your RRSP, get your refund and then put that on your mortgage, and you then end up with a nice RRSP, and a mortgage paid off sooner. If you need my advice, that would be my suggestion.
    • Now you could put your money in your TFSA if you were saving to buy a house as well.

If you want the excel spreadsheet to fool around with it, send me an e-mail and I’ll mail it to you (it’s pretty straight forward).

More real life rants to come.

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