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  • May 26th, 2019 6:28 pm
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[OP]
Member
User avatar
Aug 14, 2008
245 posts
5 upvotes
Ottawa

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hello,

Looking for some advice, I’ve recently paid off my house, I was thinking of now putting the money I was using to pay the mortgage into my rrsp and use my return to invest but was thinking is that really the best option ? Some people are telling me to buy a town house or apartment and rent looking for some comments or opinions on the matter anything is appreciated, I am also turning 43 so that may play Into some of my decision making
4 replies
Deal Addict
Nov 9, 2013
4023 posts
3833 upvotes
Edmonton, AB
This is a very broad question - what do you want your money to do for you? What are your goals?

I would say the first thing you should do is think about what you want and when you want it. To help you frame this thought you should check out The Geometry of Wealth by Brian Portnoy.

Then, work backwards to make a plan that will get you there. Assuming your goal is something like buy appreciating assets to increase net worth, you can do it with real estate or equities. If your goal is generate cash flow to live off of, you can also do that with real estate or equities. If you want a vacation home, then obviously don't buy equities.

With respect to investing in the public markets (i.e. NOT real estate) I would read some books and educate yourself so you can make more informed decisions.

Examples include:
- Millionaire Teacher by Andrew Hallam
- Stocks for the Long Run by Jeremy Siegel
- The Little Book of Common Sense Investing by John Bogle
Keep calm and go long
Deal Expert
User avatar
Dec 11, 2005
19241 posts
1730 upvotes
First off - congratulations.

What you do depends a lot on what your current RSP, TFSA, and pension state are.

The only benefit RSP has over TFSA is if you plan to make less in retirement than you do today, and that amount is enough to move your tax bracket. If this isn't likely to happen because you have a healthy pension or other savings generating some kind of capital gains, then maxing the TFSA is a better bet. In fact, for most middle-class folks TFSA is a superior retirement vehicle than RSP. So you probably want to max that first.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Addict
Jul 23, 2007
4333 posts
2724 upvotes
You paid off your house a decade in age younger than I, so that's a big positive.

Before the TFSA came about, I was investing in both the RRSP's and the non-registered account. Not really getting anywhere, because I was trying too hard to follow the top investors during my era. Once I stopped trying to copy great investors, amongst them Ben Graham and Warren Buffett, and just be myself, things finally started to click. Better late, than never.

Now I just keep investing very simple.

Index funds in the RRSP's and TFSA's. Individual Canadian dividend growth stocks in the taxable portfolio. I don't do any financial analysis. Works for me. Then again, after over thirty five years of equity investing, I'm quite used to the ups and downs of the markets, while others seem to panic.

You're just going to have to find your own personal investment system OP, that works for you.

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