Wednesday, February 23, 2011
RRSP, Pay Down the Mortgage, or Both? AOL's WalletPop Canada
Well, it's that time of year. RRSP season is upon us with the deadline for your contribution fast approaching - March 1st. The classic question I get from many is, should I invest in an RRSP, pay down on my mortgage principal or both?
I must preface that if you have any high interest credit card debt, that should be the first focus. With those rates hovering around 11-29% interest, it always makes more sense to get rid of that debt first.
Let's assume that you doesn't have any other debt and are simply wondering if the RRSP is the better way to go or, should you fast track paying down your mortgage?
Read on to find out which is the better option, or, if you should opt for a blend of both