What could be missing from your 2017 plans?

Could it be Debt management or your spending plan? It can be about balancing your choices with your desired lifestyle.

As we prepare for the RRSP deadline, you may prefer any extra cash to go towards your mortgage (your largest debt).

If your interest rate on your mortgage is greater than 3% over the average annual return of your investments (this year, your investments may be earning better), then ignore your RRSP’s and pay down your debts. Pay off any of your high-interest rate credit cards first, then your loans and lines of credit, then your mortgage.

BIG Question?  Unless your RRSP or TFSA are maxed out, don’t invest in a non-registered account. If you wanted to complete a $25,000 RRSP contribution, it is best to contribute in the name of the higher income earner (in a partner relationship). A high income earner could use a large RRSP contribution to lower their income bracket, thereby getting a bigger deduction. If you don’t have the money on hand, consider if a RRSP loan this year may have a great impact for you. Something to consider, as the markets are doing well right now, and interest rates are low. Interested if an RRSP loan is right for you, connect with me, and we can chat.