Invest in RRSPs or Repay your Mortgage?

One of the most common questions asked by Canadian taxpayers is whether they should use their excess disposable income to invest in RRSPs or pay down their mortgage.  Since contributions to an RRSP are made on a tax free basis,  reduction in taxes payable can be substantial.  Conversely,  higher mortgage payments can result in significantly lower interest expense.  As such, there several factors to consider when deciding which option is better:
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Noteworthy - Sept 12, 2010: Rule of 20 for Retirement Savings, Tips for Saving on Hotel Rooms, Will Drafting Software Reviewed

  • How much do you need to retire? The Rule of 20.

This article at Canadian Finance reveals how for every dollar of desired retirement income you need to have $20 of savings in your retirement account.  Desired retirement income calculations should deduct estimated government pension income (assuming that we still have a pension fund) and apply a factor of 20.

  • How To Save Money on Hotel Rooms

Boomer and Echo discuss 5 ways to save money when getting a hotel room, including calling the hotel directly after identifying discounts with online travel sites like Expedia.  Since hotels have to pay a fairly high fee to these sites, they are often happy to extend a discount directly to the customer as it ends up costing  them less.

The NYT looks at 4 software options for writing a will and concludes that it is still useful to have a lawyer at least review it.  Any will drafting software has inherent limitations and does not provide for situation specific advice and guidance. 

 

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What is your Net Worth?

There comes a point in many people's lives when they want to find out what they are worth.  This is much more difficult to quantify on a metaphysical level; however on a tangible level most people can figure out how much wealth they have created over time.  The definition of net worth is, very simply, the total of all your assets (what you own) less your liabilities (what you owe).
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