The Walton Financial Group in Barrie Ontario offers advice about RRSP’s VS Mortgages
The best option is to have a meeting with a Financial Advisor to discuss your financial goals
February is RRSP season and one question that arrises at this time is whether homeowners should place available cash in an RRSP , or borrow the RRSP contribution , or use the money to pay down their mortgage .
In deciding which way to go the factors include :
INTEREST RATE – if the mortgage interest rate is higher than the rate of return on the RRSP investment , consider paying down mortgage .
YOUR AGE – The closer you are to retirement the more important it is to build up an RRSP .
INVESTMENT DISCIPLINE – Once your mortgage is paid off , the amount of the former monthly payments should be used to catch up on your RRSP .
The RRSP deadline for 2019 taxation is March 2 nd . Make an appointment with a financial advisor to discuss your best investment options
