Contribute to RRSP or pay off mortgage? Oct 12th

Not sure how to make a retirement plan? Read on…

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Contribute to RRSP or pay off mortgage?

– moneysense.ca

Ask MoneySense
We have a small mortgage, only $80,000, coming up for renewal. We have some money (approximately $25,000) that we can either put on the mortgage or invest or put into our RRSP. What is the best way to go?

—Linda

Which should Canadians prioritize: RRSP or mortgage?

Most of us have debt, and most working adult Canadians will have room in their registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). Some of us have group plans with matching contributions at work as well, just to complicate things. Making sure your cash flow is properly funneled is an important part of financial planning.

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In your case, Linda, I note that you refer to your mortgage as a “small” mortgage. Small can be relative or based on your own perspective…

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