Not sure what to put in your RRSP and TFSA? Make contributions anyway Feb 1st
Financial adviser Jason Heath says Piper needs to get her debt and expenses under control before even thinking about home ownership and retirementWhere should you invest an extra $50,000 in your 60s?
– moneysense.ca
Where to invest a large sum of money when you’re in or nearing retirement
Congratulations on having $50,000 available to invest, Ty. You do not say how you came into that money or describe your current financial situation. For some, it could be considered quite a windfall. Let’s consider a few different situations first and then move on to possible recommendations.
Do you have debts?
Investing a lump sum of $50,000 sounds great. However, receiving an investment return of 5% is not going to do much for you if you are carrying a balance on a credit card that is charging you 20% interest. Paying off high-interest debt will provide you with a greater net return than you are likely to receive from any long-term investment.
What about mortgage debt? A year or two ago, with some mortgage rates available below 2%, I might have advised that you invest rather than aggressively pay down any amounts owing, but with advertised rates at greater than 5%, if your mortgage is up for renewal this year, you would do well to consider reducing the amount you owe…
