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Discussion Starter #1
Hello. New to the forum. I know this question has been asked before but given the unique circumstances we are in, I wonder if opinions have changed.

We recently closed on a home with 20% down. Mortgage payments are relatively high (I live in Vancouver). Interest is 2.54%. No other debt. My TFSA and RRSP are not maxed out. Previously, after I cleared out all my student loan debt I was focused on maximizing my TFSA. I didn't think it would be hard to beat a 2.54% return. I could buy bank stocks and beat it collecting the dividend and my capital would be relatively safe. I still think the same, but these days I've been sitting more or less on the sidelines waiting for another dip or buying opportunity as I fear another across the board drop. So over the next few months instead of contributing more to my TFSA and sitting on cash perhaps I make bigger payments to my mortgage?

Here are some of the things that goes into my thought process (my apologies for some rambling):

I consider the TFSA to be an investment and savings account meaning I plan to grow my investments but at the same time think it is liquid enough for me to withdraw from if needed. Of course there's always a risk that I would lose capital.

Saving for retirement through RRSP is not my top priority. My main interest in putting money into RRSP is tax deduction. Money saved now is better than money saved later kind of thing. I'll probably put money into a spousal RRSP in later years since my future wife plans to retire early than I am. Otherwise, this is money that will be untouched for over 2 decades.

Mortgage. It's great to be debt free earlier. Paying down the mortgage saves money on interest. Then again, I don't want to be house poor and being house poor is even worse if property prices go down. But we need a home to live in so housing prices going up or down isn't that big of a deal in the long run.

So what do you guys think? I'm leaning towards maximizing my TFSA while putting a little bit more on my mortgage then once TFSA is maximized I do a bit of a split between RRSP and making extra payments on mortgage. Of course once it's safe to go on vacations and go to restaurants more of a my disposal income would go towards pigging out.
 

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I would look at the TFSA and RRSP first, in that order too. These buying opportunities are pretty rare after a large correction of~ 40%. Markets are still down ~ 20% and should recover slowly but eventually over the next year. They are already up about 20% from the bottom just a month ago. You can look at least double digit returns over the next year.

They have just had a little run up 2 weeks in a row so maybe put in a little ( 5%) now or wait for a little pull back. Then just add in each month or when there is a drop of 5-10%.
 

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Discussion Starter #3
I would look at the TFSA and RRSP first, in that order too. These buying opportunities are pretty rare after a large correction of~ 40%. Markets are still down ~ 20% and should recover slowly but eventually over the next year. They are already up about 20% from the bottom just a month ago. You can look at least double digit returns over the next year.

They have just had a little run up 2 weeks in a row so maybe put in a little ( 5%) now or wait for a little pull back. Then just add in each month or when there is a drop of 5-10%.
Thanks for the advice. I have missed several buying opportunities already. Oh well. It's still a discount from the highs earlier this year.
 
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