Pay off the mortgage or maximize RRSP?
Let's face it: The vast majority of us don't have unlimited amounts of cash, and deciding where to spread the fiscal love, so to speak, can be difficult. As you put money toward one thing, you often have to take it away from another. Herewith, a few guidelines to help you decide where to focus your energy and your hard-earned dollars.
Pay off the mortgage or maximize an RRSP?
Do both, suggests Vancouver certified financial planner Diane McCurdy, author of How Much Is Enough? "Many of us are in a 30 per cent tax bracket," she says. "So if you make an RRSP contribution of $1,000, you get a tax refund of about $300." That's a better return than you would get from paying down your mortgage. But instead of regarding that refund as mad money (St. Lucia, here I come!), plop it down immediately on your mortgage to get double the love from your dough. To ensure you stick with the program, McCurdy suggests setting up an automatic payment plan to make monthly contributions to your RRSP.
That double-barrelled approach is ideal, agrees Lenore Davis, a registered financial planner in Victoria. But, she point
