So just a summary from the last post...it's a girl! My daughter Ava was born on March 15th, 2011 and that has been a wonderful blessing to our family. She has received her SIN number so we are heading to the bank on Friday to begin her RESP for schooling!
Financially, I took out a $5100 RRSP loan and ended up getting back over $3000 from the government, so all of that $3000 will go towards paying back loans (both the RRSP loan and my student loans). My priority for paying back loans will be
1) smallest student loan (done)
2) RRSP loan (I have about $3200 left)
3) last student loan (I have about $9800 left)
4) house mortgage (I have about $120,000 left)
We'll see if I do another RRSP loan for next year...chances are that I will. The net worth increase is tremendous and the regular payments aren't a strain on me financially.
As far as investing, once the TSX gets to 15000 I will take 20% of my Dividend holdings and turn them into bonds. After that, it will be once the TSX gets to 16500. All of my contributions are going into the Dividend Fund at this time.
Showing posts with label rrsp. Show all posts
Showing posts with label rrsp. Show all posts
Sunday, April 10, 2011
Monday, February 21, 2011
RRSP Loan
So this weekend I took out a loan from the bank for RRSPs. Generally I think it makes more sense to save ahead (which I do anyway), but I had some extra cash floating around (paycheque to paycheque) and some RRSP contribution room so I decided to take a loan. I ended up borrowing a little over $5100 (which turns into me paying back $200 per paycheque). The total cost of borrowing is about $70. Considering that I'll get at least 30% of that back through my income tax, it sounds like a pretty good investment to me! The interest rate they gave me as well is below prime, so it will be my lowest priority to pay off.
When I get my income tax back, I will split the return three ways: 1/3 going towards an RRSP re-contribution (for next year), 1/3 going towards my mortgage, and 1/3 going to a student loan. Once my student loan is paid off, then I will concentrate my energy towards the RRSP loan, and then finally to my bigger students loan. All in all, this will really help our next worth and things are moving in a perfect direction before the baby is born!
When I get my income tax back, I will split the return three ways: 1/3 going towards an RRSP re-contribution (for next year), 1/3 going towards my mortgage, and 1/3 going to a student loan. Once my student loan is paid off, then I will concentrate my energy towards the RRSP loan, and then finally to my bigger students loan. All in all, this will really help our next worth and things are moving in a perfect direction before the baby is born!
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