Thanks for taking the time to do an AMA. Long time reader.
I'm wondering what your thoughts are on paying down a mortgage versus investing in an RRSP. I know interest rates are very low, plus there are tax advantages to contributing to your RRSP, but it seems with such low returns being generated in the market there isn't much incentive there. I understand the whole compounding growth on your investments, but there is also compounding on your mortgage interest. . .I like doing double-up payments on my mortgage because it is essentially a guaranteed return on my money (by avoiding future interest). I'm still contributing to my RRSP's (roughly 10% of gross) but could do more if I wasn't doing double ups on my accelerated bi-weekly mortgage payments.
What are your thoughts on the matter? The prospect of being mortgage free much sooner is very appealing!
glickplick2 karma
Hi Rob,
Thanks for taking the time to do an AMA. Long time reader.
I'm wondering what your thoughts are on paying down a mortgage versus investing in an RRSP. I know interest rates are very low, plus there are tax advantages to contributing to your RRSP, but it seems with such low returns being generated in the market there isn't much incentive there. I understand the whole compounding growth on your investments, but there is also compounding on your mortgage interest. . .I like doing double-up payments on my mortgage because it is essentially a guaranteed return on my money (by avoiding future interest). I'm still contributing to my RRSP's (roughly 10% of gross) but could do more if I wasn't doing double ups on my accelerated bi-weekly mortgage payments.
What are your thoughts on the matter? The prospect of being mortgage free much sooner is very appealing!
Thank you!
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