Comments on: Pay off Debt or Invest: How do you Decide? http://blog.canadian-dream-free-at-45.com/2009/06/29/pay-off-debt-or-invest-how-do-you-decide/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: DavidV http://blog.canadian-dream-free-at-45.com/2009/06/29/pay-off-debt-or-invest-how-do-you-decide/comment-page-1/#comment-28882 DavidV Tue, 30 Jun 2009 14:13:56 +0000 http://blog.canadian-dream-free-at-45.com/?p=817#comment-28882 My idea is I'm going to max out my RRSP each year, and take the refund to pay down my mortgage. I'm only 30, so I have time to allow the RRSP to grow, and using the tax rebate to pay down the mortgage will be a nice way to get a win-win situation. My idea is I’m going to max out my RRSP each year, and take the refund to pay down my mortgage. I’m only 30, so I have time to allow the RRSP to grow, and using the tax rebate to pay down the mortgage will be a nice way to get a win-win situation.

]]> By: Astin http://blog.canadian-dream-free-at-45.com/2009/06/29/pay-off-debt-or-invest-how-do-you-decide/comment-page-1/#comment-28841 Astin Mon, 29 Jun 2009 17:22:33 +0000 http://blog.canadian-dream-free-at-45.com/?p=817#comment-28841 I only consider it debt if I can't actually pay it off (ie.- a mortgage that I can't turn around and pay off tomorrow or it's not earning enough to pay for itself). So debt on a rental property is fine, as long as the propery brings in enough to pay for itself. Especially since that interest is tax-deductible. Debt on a car or credit card isn't as far as I'm concerned. I only consider it debt if I can’t actually pay it off (ie.- a mortgage that I can’t turn around and pay off tomorrow or it’s not earning enough to pay for itself). So debt on a rental property is fine, as long as the propery brings in enough to pay for itself. Especially since that interest is tax-deductible. Debt on a car or credit card isn’t as far as I’m concerned.

]]> By: Graham http://blog.canadian-dream-free-at-45.com/2009/06/29/pay-off-debt-or-invest-how-do-you-decide/comment-page-1/#comment-28840 Graham Mon, 29 Jun 2009 17:11:46 +0000 http://blog.canadian-dream-free-at-45.com/?p=817#comment-28840 The other question that needs to be asked is the type of debt; is the interest on the debt tax deductible or non-tax deductible. If you can write off the interest on the debt that in essence lowers the comparative interest rate. The other question that needs to be asked is the type of debt; is the interest on the debt tax deductible or non-tax deductible. If you can write off the interest on the debt that in essence lowers the comparative interest rate.

]]> By: Canadian Money http://blog.canadian-dream-free-at-45.com/2009/06/29/pay-off-debt-or-invest-how-do-you-decide/comment-page-1/#comment-28834 Canadian Money Mon, 29 Jun 2009 14:35:59 +0000 http://blog.canadian-dream-free-at-45.com/?p=817#comment-28834 The issue of how one handles stock market risk is very important. It seems to me that one cannot answer that question without first having some actual experience in the market when it drops. When a mutual fund retailer (bank etc)asks a client how much risk the client wants to take it is really a misleading exercise. Most people are not qualified to answer that question. Only those who have lost money in the market have any idea what "their answer should be". After the recent market drop many more people can now answer that question with a more valid answer. The issue of how one handles stock market risk is very important. It seems to me that one cannot answer that question without first having some actual experience in the market when it drops.

When a mutual fund retailer (bank etc)asks a client how much risk the client wants to take it is really a misleading exercise. Most people are not qualified to answer that question. Only those who have lost money in the market have any idea what “their answer should be”.

After the recent market drop many more people can now answer that question with a more valid answer.

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