18% for me for every year I've been working.
Agreed. It ran across my head when I was thinking about it - this is my first year on a pension plan so I haven't really incorporated it into my thinking.My contribution amount varies .... depending on ... corporate pension plan contributions ...
A more relevant question is what % of your available RRSP space do you maximize every year.
I believe it depends on the individual's situation.Stephen & FT, it all depends on your personal circumstances as well as the ability to even put one-dollar into an RRSP (some are not so lucky)
Some folks have the luck of the draw like FT & his spouse, others are not so lucky
As a 62 year old my suggestion to the younger posters is to get rid of that mortgage in the quickest fast time possible and forget for now the RRSP, unless you really have excess cash or the ability to do it.
I can only imagine those that contribute every year to RRSP's & TFSA's and take 25-years to pay off their mortgages
I'd prefer to pay off the mortgage in half that time then take the next 12 years maxing on missed RRSP's & TFSA's - the contribution room never goes away
For what its worth
indeed & I didI believe it depends on the individual's situation.
There are online calculators to assist people with this process.
That is part of what I love about the TFSA. Theoretically I have 10 years left on my mortgage, which is 1.5% at the moment and has 4 years left before renewal. If I put the $10k per year into the mortgage as extra payments, it would be about 7 years total. But by putting it into the TFSA and getting 1.65% interest at the moment, I have the option of just renewing for a year at a time at the end of this term and using the TFSA to pay off the mortgage in year 7 if everything goes according to plan, but if something terrible happens, I've got a nice big emergency fund in the TFSA to help tide through. Before the TFSA, I'd have paid off the mortgage and relied on a line of credit for a big emergency.I can only imagine those that contribute every year to RRSP's & TFSA's and take 25-years to pay off their mortgages
4% investment rate seems awfully low for someone who has 35yrs till retirement.indeed & I did
the numbers that I plugged was $18,000 available cash to put into the mortgage or RRSP
Mortgage rate was set at 5% the RRSP investment rate was set to 4%
mortgage has 25 years to go & that I had 35 years to retirement
Result was 'pay off the mortgage first' & not to contribute to the RRSP
Each case is different, but that calculator was useful
relative to todays rate of return & mortgage rates4% investment rate seems awfully low for someone who has 35yrs till retirement.