Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
Latest News
Retiring on bonds? + MORE Jun 24th
This is the fourth post of Jonathan Chevreau’s new column, Retired Money, which will explore smart ways to draw down income in retirement and semi-retirement.
Just how tough is it for modern retirees to generate a liveable income solely from fixed-income investments? According to BMO Asset Man.... More »
Making sense of the markets this week: August 28 + MORE Aug 31st
Kyle Prevost, editor of Million Dollar Journey and founder of the Canadian Financial Summit, shares financial headlines and offers context for Canadian investors.
Banking on stability and caution
Canadian investors love their banks. Year in and year out, banks provide dependable dividend growt.... More »
When to break up with your financial advisor + MORE Nov 4th
TORONTO – When Deborah Ison decided to break up with her financial advisor last year, investment performance had nothing do with her decision.
The 45-year-old human resources project manager from Burlington, Ont., was in the midst of a divorce and went to her advisor with pressing questions about .... More »
Financial planning in your 70s + MORE Oct 12th
When most people think about financial planning, they think about saving and investing for retirement. That is certainly a part of it, but financial planning is much more holistic.
Here are a few financial planning strategies for those approaching or into their 70s. If you are not there yet, bookmar.... More »
Can you move income back and forth between spouses? Aug 22nd
Ask MoneySense
I have an investment property (condo) in my name. I would like to sell it and [have the proceeds] paid out half to me and half to my spouse. The plan is to make the maximum RRSP contribution for both of us to minimize the capital gain.
Is that plan OK, legal, and wise?
–Zlatko.... More »
There is no pension crisis, says a Carleton University professor and Ontario’s pension plan is expensive and not needed.Making an RRSP withdrawal to pay the mortgage
– moneysense.ca
(Getty Images/Arda Guldogan)Q: I just bought a new house. I have a $250,000 mortgage at 2.97%. We have a little over $2 million in investments, but they are all in RRSPs in fairly conservative investments. Last year we made 7% and this year made probably 5%. We are in our early 50s and still working. Is it better to pay off the mortgage and take the tax hit or pay the mortgage and hope I make more on my investments? I can’t seem to get my head around it.—Darby
A: The mortgage versus RRSP debate takes many forms, Darcy. Often people ask about whether to use their cash flow to either pay down their mortgage or put money in their RRSP. Your question is a little more extreme: cashing in your RRSP to pay off your mortgage.
Let’s start by reviewing some of the considerations:
First, here are some very general reasons to consider paying down your mortgage instead of contributing to your RRSP, subject to other factors:
-You are risk averse: Paying down debt provides you with a guaranteed rate of return via the interest you avoid thereafter—a return that will increase as interest rates normalize…
