Invest in RRSP or Pay Down Mortgage With Sisip Funds

I also have Gail Vaz-oxlade's two newer books if anyone has an e-reader I will email you a copy. Just in box me your email. The books are:
Easy Money
Money Rules

It doesn't matter what reader you have just let me know and I will sent the right format. I do have other books as well.

Thanks Sparrow just want to help anyway I can. You all have done so much.

I really appreciate your post kozi ~ well said

I read many many personal financial books and magazines of which most of them if not all say "Pay your consumer debts first" credit cards, store cards, anything with a high interest rate and second concentrate on your mortgage because it is a capital gain there for not taxed! One of the best nest eggs we can have is our home. The problem we face is disciple and the leverage to follow thru with this sound advice. Being deprived of wants for so long and suffering from mental illnesses we aren't of a sound mind to action this. Paying yourself 10% first should also be a priority and for heaven sakes take your family and bloody celebrate first and for most! I would suggest take a moment with the family including children and the (animals) lol write a list of your wants and needs. Go over this list several times reaffirming they are indeed wants and needs, then prioritize the list. Then right down all your consumer debt. Put them from the most interest to the least and prioritize the list. Rework it until the list is complete and everything is on it. Budget your money so that your NEEDS & HIGHEST interest debts are paid first!! Then rework your wants and lowest interest debts that you can afford and pay them, working your way down the list.

Just my opinion! Hey I have the same issues as everyone else. I will be getting a profession advisor and most definitely will share the info here.

Great advice Maggie ~ never thought of that scenerio ~ I know very little about RRSP's ~ at what age do we have to convert them and in turn have the money used up?

A really good compromise on this it to invest your money in an RRSP and then use your tax refund to pay down the mortgage... That way your original investment is still in a liquid asset and available should you need it, and you decrease your mortgage balance and therefore the interest you are paying on your home.

For the purpose of Sisip Settlement Funds ~ this is something I was questioning myself ~ the scenerio in example isn't exactly Veterans situation but the basic questions are there ~ sparrow

Q: I will retire in five years and wonder if it would be best to put money towards my RRSP or throw it at my mortgage instead. - Kevin Byrne

A: Math and mindset are both big factors in the choice between investing in an RRSP or paying down mortgage debt. In today's super-low interest rate environment the math tilts towards your RRSP. Here is a simplified example: If you put the money towards your mortgage you'll earn a guaranteed "return" equal to your mortgage rate, say 3.5%. If you put the money into your RRSP and invest in a balanced portfolio you can reasonably expect long-term returns of about 5% to 6%. Plus, you'll receive a tax refund that can either go towards debt repayment or right back into your RRSP (an especially powerful strategy if you're in a high tax bracket).

Matthew Ardrey, a financial planner with T.E. Wealth in Toronto, says the RRSP advantage is even stronger if you're in a high tax bracket. But he also wants to know what other sources of retirement income or assets there are: "You don’t want to be house rich and cash poor."

So that is the math part of the decision. But the mindset part counts too. A return of 5% to 6% on your investments is by no means guaranteed, and the risk might be too much for you. Some people simply sleep better at night when they are plugging away at debt, especially as the retirement party draws near.