Investing

Investing $20k in cash each year

  • Last Updated:
  • Dec 7th, 2017 8:51 pm
[OP]
Jr. Member
Oct 21, 2017
106 posts
9 upvotes

Investing $20k in cash each year

If I have $20k in cash each year for investment, am I better off investing the $20k in the stock market or put it into the mortgage and wait until there's a stock market dip and take the money back out via HELOC?
6 replies
Newbie
Sep 16, 2017
44 posts
13 upvotes
You can do that. tax free return regardless if you pay off your mortgage.
Deal Fanatic
Feb 15, 2006
6889 posts
1483 upvotes
Toronto
If you have debt (e.g. mortgage), it's usually better to pay the debts down, then invest the money. When investing, put in TFSA first, then maybe RRSP or others.
Member
Feb 26, 2017
326 posts
93 upvotes
I'd put in the market rather than paying down your mortgage (this is what I'm doing). Rates are quite still low and its good to invest in something besides real estate. Its very hard to time the market and if your consistently investing it should work out alright. Just keep a long term view and don't sell if your investments go down.
Jr. Member
Jan 16, 2009
151 posts
67 upvotes
I'd invest in your TFSA and RRSP. If you have extra money left over after that you can apply it to your mortgage rather than open a non-registered (taxable) account.
Jr. Member
Apr 8, 2017
119 posts
28 upvotes
It looks like you are in a high tax bracket if you can save 20k after all your expenses and mortgage.

I would invest in RRSP and use the big refund to pay off the mortgage.

If you share some information about your tax bracket, mortgage balance, mortgage rate, work pension and other savings like TFSA people can be of more help.

Also time horizon and how much time you want to spend a month managing your investments.

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