RRSP or Pay Down Mortgage?
My wife and I have a goal of paying off our mortgage by the end of 2018, when the term is up. Our payments are currently doubled and by my calculations we need to save another $117,000 on top of that before that time in order to succeed. I want to know your thoughts on paying into RRSP vs saving for paydown of the mortgage.
She makes $133k and has a defined benefit pension, as well as a matching savings plan that has her RRSP pretty much maxed. We both have almost full TFSA's. I have nothing in RRSP and work two jobs, one is a yearly contract and the other commission. I had my best year ever in 2016 and made about $152k.
Just doing taxes and looking at allocating. I was looking at putting about $27k into an RRSP index fund to lower my tax bracket. I would get about $10,500 back, so that would create a higher mountain to climb on the mortgage front. This could prevent us from reaching our goal on time.
Am I being crazy? We want to start a family in 2019 and love the idea of having cash flow freedom.