Debt Free In 30
101 – BEST OF SHOW - Should You Pay Down Debt, Or Invest In RRSP?
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:29:00
- More information
Informações:
Synopsis
Today's show is a rebroadcast from Season #1. It's one of our most down-loaded shows, because it answers a common question: Should I pay down my debt, or contribute to my RRSP? The answer is not always obvious. We all know that investing in an RRSP generates a tax refund. If you are in the 40% tax bracket, a $1,000 contribution to your RRSP generates a $400 tax refund. (Of course I'm over-simplifying this example; your actual tax refund will depend on your marginal tax rate, and many other factors). $400 sounds great, so why would I ever use that $1,000 to pay down debt? Isn't the RRSP contribution always the best answer? No. As we discuss on the show, this is largely a math question.