https://padlet.com/amythompson121/uvs4annadr93x2w9 Amy Thompson en-us 2022-11-28 23:25:33 UTC 2022-11-29 03:17:29 UTC hello@padlet.com amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401051691 An RRSP is a retirement savings plan. You contribute to this account for retirement purposes. When you invest into this account your funds become tax-advantaged. This is a great way to start saving for your long term goals.

I chose this source  as it is from a well known bank in Canada. It provides a great description of what a RRSP is used for and how they work. I wanted to include a basic definition of this type of account to ensure the viewer is familiar with this topic before viewing the rest of the padlet. 

]]> 2022-11-29 00:03:52 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401051691 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401063831 If you are stuck between where to put your income it is always best to look into your future. Both are beneficial for your future but this video specifically looks at the benefits of focusing on  your mortgage payments. When you pay more into your mortgage and have it paid off at an earlier date, that extra money you've been putting towards those payments can be useful to then invest into a RRSP. 

I like this video because it outlines the benefits of paying your mortgage over investing all your excess money straight into an investment. I believe both have their benefits and this shows one side of that. ]]> 2022-11-29 00:17:52 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401063831 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401080944 Taking a look into your financial stand point is a crucial first step to uncovering what will be more beneficial for your specific goals. Having a set of goals will really help you determine which is the better investment for you.

I like this video as it shows how important it is to create a plan and evaluate your budget and financial status. I believe for either investment route this is a step you need to inevitably take. ]]> 2022-11-29 00:34:16 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401080944 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401088607 A mortgage is a loan you pay back at a specific rate after purchasing a home. A down payment is needed to be approved for a mortgage. You must pay back this loan over a calculated amount of time arranged called an amortization period by the bank you chose. A down payment in Canada is 5% but some lenders require more. Depending on this value your mortgage is calculated. 

 I chose to add this URL because it is a reliable source as it is straight from the Government of Canada website. I think it outlines the specifics of everything you need to know about mortgages and how they work. I wanted to provide this information to ensure the viewer understands the difference between a RRSP and a mortgage. ]]> 2022-11-29 00:41:33 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401088607 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401112091 It is important to understand the advantages and disadvantages of investing into your mortgage versus your RRSP. If you pay off your mortgage then start contributing to your RRSP it will save you interest on mortgage but you will miss out on the benefits of long term compounding growth. If you make your regular payments on your mortgage along with RRSP deposits you will be taking advantage of immediate tax refund but risking a longer mortgage payment period.

I chose this image as it provides a great example of the benefits between RRSPs vs Mortgages. ]]> 2022-11-29 01:04:15 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401112091 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401126270 I added this photo as it represents the visualization of balancing between investing into an RRSP with your income or your mortgage. I think it also shows that there can be a balance set between the two with proper money management as you want money accumulated for your retirement. 

Picture website https://www.moneysense.ca 


]]> 2022-11-29 01:17:07 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401126270 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401150484 This website provides the information of how much tax return a RRSP can generate with contribution and a link to a retirement calculator. 

I believe with your personal goals for the amount you wish to generate over time for retirement, will provide an outline of how much you can invest along with paying for your mortgage. It is more than possible to balance the two!]]> 2022-11-29 01:38:35 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401150484 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401161548 It is viable to weigh out each rate of return both investments provide. If your mortgage is at a good rate it would be wise to pay that if your RRSP rate is not as optimal. 

This video differentiates between when to invest into your RRSP and what options you have when trying to figure out if you are eligible to do both at the same time.]]> 2022-11-29 01:49:40 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401161548 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401166522 It is great to factor in your age when dealing with paying for your mortgage and RRSP. It is optimal to factor in a timeline while doing so. If you are 25 your focus is more likely on paying off your mortgage where as if you are nearing retirement you ideally want to be mortgage free and have a good cushion invested into your RRSP.

This article outlines investment discipline which is very useful surrounding this topic. If you chose to focus on your mortgage as you believe you have enough time before retirement to then start saving, are you going to follow through? If you don't start soon are you going to spend that money elsewhere? I think it this article produced a good eye opener to the reader as it provides a different perspective on this topic. ]]> 2022-11-29 01:54:21 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401166522 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401184778 One thing I found most surprising is the controversy between being able to do both.

I am nearing the age where it is time to start thinking about becoming a home owner and preparing for my future so this topic was very useful. It is important to have the knowledge about having proper investments to provide for a comfortable life after retirement. 

After conducting research on RRSP and Mortgages I would highly recommend that you don't wait to invest into your RRSP!

]]> 2022-11-29 02:10:35 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401184778 amythompson121 https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401229928 This video outlines specific deadlines associated when you contribute to an RRSP account such as it being March 1st for last year. As well as it talks about the 18% limit on your yearly income. This video also outlines how RRSP allow for you to carry forward additional contribution for a tax deduction.

I have added this video as it provides numbers associated with investing into a retirement plan and how beneficial it can be on your tax return. ]]> 2022-11-29 02:48:19 UTC https://padlet.com/amythompson121/uvs4annadr93x2w9/wish/2401229928