Investing RRSP vs Mortgage by Noah Gill

Introduction

gillnoaha — 2024-11-18 23:10:10 UTC

In this panel, you will learn about RRSP and mortgages. You will be able to learn about their differences and similarities as well as learn whether it's better to prioritize paying off your mortgage or put more money into your RRSP

Video 1: Understanding RRSP

gillnoaha — 2024-11-18 23:18:00 UTC

In this video, Brandon goes into an in-depth explanation of the purpose of the RRSP. He explains the tax benefits, and if there is any limit to how much money you can put in. He also describes how RRSPs can be used to grow your retirement savings. The reason why I chose this video was that he was able to explain the basics of how RRSP works and at the same time went into a little bit more in-depth about the basics of it. Still, at the same time, he was able to explain it so that someone who doesn’t have any idea how it works will have a solid understanding of it.

Website 1: RRSP vs Mortgage

gillnoaha — 2024-11-18 23:32:53 UTC

This Article talks about the problem that many of Canadians end up facing decadent if it is smarter to prioritize paying down their mortgage or focusing on their RRSP. An important factor to keep in mind is your income, the interest rate on the mortgage and the potential return you could achieve with the investments. If you have a higher than average income most people benefit from contributing to their RRSP over their Mortgage. However, if you are someone with a high-interest mortgage you should prioritize paying off your mortgage. Both choices can be balanced but it's best to get a financial advisor to see which one is the better option for you.

I chose this article because I felt like it shows that it all depends on where you are in your life and what your financial situation is

Website 2: Is RRSP more important

gillnoaha — 2024-11-18 23:36:19 UTC

The Morning Star explores whether building up your RRSP is more important than paying off your Mortgage. The article shows that even tho paying down your mortgage will provide a guaranteed return and could help reduce stress. Most people who are in a higher tac bracket should contribute to their RRSP because it can be extremely beneficial since you would get tax deferrals.

I chose this website because I think it’s a good idea to see the benefits of both sides to see which one is ultimately the better option for you and if either one would have a better benefit for your future.

Video 3: The importance of paying your house early

gillnoaha — 2024-11-20 23:32:42 UTC

In this video, it highlights the benefits of focusing on paying your mortgage off over an RRSP. By focusing more on paying off your mortgage you can reduce your debt with this it can lead to a more financially stable life and it can also decrease the amount of interest payments you need to pay off. You won’t only get financial relief but also you’ll have more emotional stress relief since you won’t have to worry about future payments.

I liked this video because it chose the benefits of focusing on paying off your mortgage and shows that even if you put in extra payments even if it’s a small amount it can greatly reduce the length of your mortgage.

Video 4: Should You Pay Off Your Mortgage Early or Invest for Retirement

gillnoaha — 2024-11-20 23:45:53 UTC

This video gave a good description of the pros and cons of paying your mortgage off early, instead of prioritizing building up your RRSP. She talks about the factors that you have to think about when planning she brings up the importance of interest rates and the potential return on investments. However, prioritizing your mortgage can also result in a lower potential for compound growth and your RRSP could suffer.

I liked this video because it not only showed the pros of paying off your mortgage but also showed the cons of it as well. I don’t think many people like to talk about the cons so I liked the fact they talked about the cons

Website 3: What's better to focus on?

gillnoaha — 2024-11-21 00:45:25 UTC

This website writes about the different pros and cons of prioritizing your mortgage over the RRSP. It brings up a lot of factors to think about like the age you want to retire at, the length of your mortgage and any investment growth.

I liked this website because it goes more into depth about which options you should go with depending on your financial structure. I also liked how it gave real-world examples as they talk about a couple that is 20 years away from retirement with a 4% fixed mortgage for 5 years. This couple should focus on building up their RRSP. As opposed to the other couple who is older with the same mortgage structure it’s smarter for them to focus on paying off the mortgage because of the tax tolerance and tax situation.

Website 4: Focus on your RRSP or Mortgage

gillnoaha — 2024-11-21 01:09:21 UTC

This website talks about the importance of planning out your budget and what your plan is to see whether to contribute to your RRSP or your Mortgage. Just like most of the other websites, it says that the decisions are all about your financial situation, and what stage of life you're at.

I like this website because it gives a full analysis with real examples of short and long-term goals you're trying to achieve. Comparing the tax savings, debt reduction and return on investments can help show what your priorities should be and what you focusing on making a decision.

What did you learn about your topic that surprised you the most?

gillnoaha — 2024-11-21 01:19:42 UTC

What I was most surprised about learning was how much the state you at in life and your personal goals affect whether your choose to focus on your RRSP or your Mortgage

Provide a real-life example of how this topic is relevant or interesting for you.

gillnoaha — 2024-11-21 01:22:06 UTC

This topic is relevant to me because at my stage of life, I’m starting to think about what goals I should focus on making a priority. Understanding the pros and cons of either the RRSP or paying your mortgage will be super important when I decide to move out.

If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

gillnoaha — 2024-11-21 01:23:28 UTC

I thinkk the most important takeaway is that it’s all a personal choice and you need to understand what stage you're at in your life and which decision will better help you in your future.

Video 2: What is a Mortgage

gillnoaha — 2024-11-21 01:47:08 UTC

This video explains the basics of a mortgage and how it works. It covers the basic knowledge about how a mortgage is a loan with a long-term payment period. There are different types of mortgages like fixed and variable mortgages. As well as an understanding of the condition and term.

I chose this video because I think it’s important to understand what a mortgage is and the different types of mortgages you can get. I think it’s also important to have a clear understanding of how interest rates work and the difference between a fixed and variable mortgage.

Image 1: Graph

gillnoaha — 2024-11-25 21:46:03 UTC

The graph shows how an RRSP with $ 10,000$ can contribute to a higher outcome. It shows the different types of returns you can obtain from various incomes ranging from 3,000$ at 75,00$ up to 4,800 at 200,00$.

Image 2: Graph of mortgage

gillnoaha — 2024-11-25 21:52:00 UTC

This graph shows how much the interest rate can influence the total cost of paying off the mortgage over time. It shows two lines of interest payments and principal payments and how after 222 months, the monthly payments cost more than the interest payments.