February 25, 2018

Paying Down Debt vs RRSP Investment?

It has always been a dilemma of whether you should use any excess cash to contribute to your RRSP or pay down your mortgage.  The current economic equation has recently tilted in favour of paying down debts vs. building up assets but only for those people with a low tolerance for any investment risk.  The current interest earned from GICs, term deposits and government bonds remains pathetically low.  At current deposit rates of around 1%, it takes 72 years to double your retirement nest egg if you only earn 1% per annum. Here is how to think about the trade off between paying…

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