Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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Ten proven ways to pay less tax this year Mar 2nd
How to use tax shelters and structure your retirement portfolio to reduce your annual payment to the CRA..... More »
Bear markets: What’s a long-term investor supposed to do right now? + MORE Jul 13th
My mutual funds are doing terribly, and I know they always say that it is better to stay the course and ride out this market crash and whatever. But I’ve been thinking about divorcing my big bank for awhile now. I have RRSP with mutual funds that have high management fees with RBC, slightly b.... More »
Planning can help you make sure your retirement savings will last Jun 16th
There are steps you can take to make sure you don’t outlive your retirement savings, writes Ellen Roseman..... More »
Stock news for investors: Cineplex and Aritzia post strong results despite industry headwinds + MORE Oct 11th
Here’s a round-up of news for Canadian investors this week.
Cineplex
Aritzia
Trilogy Metals
Barrick Mining
Cenovus-MEG Energy
Featured RRSP Accounts
featured
EQ Bank
Buil.... More »
Stock news for investors: Quarterly profits up at Shopify, Brookfield; down at Suncor, Reuters Aug 8th
Here’s a round-up of news for Canadian investors this week.
Shopify
Suncor Energy Inc.
Brookfield Asset Management
Parkland Corp.
Thomson Reuters
Featured RRSP Accounts
featured
EQ Bank
.... 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…
