Trying to decide what’s the best move can be difficult… and, I must admit, this isn’t an easy subject to tackle. There are so many opinions! But it’s important enough that I’m going to put my two cents into the discussion. (My final recommendations are listed at the bottom if you want to fast forward.)
First, let’s come to the understanding that we’re all different and have unique needs. You must first ask for professional advice in order to make up your own mind. Having said that, I think that, for me, this is actually a very easy decision. Continue reading “RRSP, RESP, TFSA or Mortgage prepayment… Which offers the best bang for my buck?”
There are over 10million TFSA accounts in Canada according to this article in the Financial Post. Wow, it’s great to see that level of savings….
But hold on…..is this the right strategy for those of us with a mortgage? Well, if you have a mortgage on your principal residence and the interest is not tax-deductible, then I think it’s NOT the right strategy.
For most of us, the interest on a residential mortgage is not tax deductible (I say for most of us because if you rent out part of the home or use it for your business then you may be able to claim a tax deduction).
Take those after-tax $$dollars and pay your mortgage first before putting them into a TFSA… reduce the amount of non-deductible debt and then focus on a TFSA…. If you own an investment property, then this strategy may vary slightly…. but for most of us, let’s get rid of that mortgage first…
And yeah, for those higher income earners looking to diversify, then sure.. A TFSA makes sense. But for most Canadians, I would suggest getting rid of the mortgage is a better strategy.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis 416 224 0114 email@example.com
HOW TO GET THE MOST OUT OF YOUR MONEY
Trying to decide what’s the best move can be difficult…. and I must admit, this is not an easy subject to tackle. There are so many opinions…. But it’s important enough that I’m going to put my 2 cents in. My final recommendations are listed at the bottom if you want to fast forward…
First, let’s come to an understanding that we are all different and have different needs…. you must ask for professional opinions and make up your own mind. Having said that, I think that for me, this is actually a very easy decision. Continue reading “RRSP, RESP, TSFA or Mortgage prepayment? Which has the best returns?”