RRSP vs paying down debt: Which is better?
Dave Aeri may be only 32, but he’s already thinking ahead to retirement. By the time the recently married IT manager punches his last clock, he wants his mortgage paid off and a healthy amount of savings to get him through his golden years.
While some may seem like they have it all figured out, many Canadians are struggling with the choice between the largest financial priorities in their lives. With a mortgage, a growing family and retirement in the future, where should the bulk of your income be spent? Building equity in your home, contributing to an RRSP or saving for your children's education?
Of course, these choices will not be the same for everyone. Depending on interest rates, some are able to pay their mortgage off faster which will allow for a little more financial freedom in their retirement.
Ultimately, this decision boils down to the individual and their personal goals. This article gives a little more insight into a decision with many factors.