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Monday, February 26th, 2024

Planning Your Retirement- There is no Substitute

One of the best risk-adjusted investments you can make requires no commissions, no buying and selling, and no management fees.

According to a new study from the Certified General Accountants Association of Canada, the boring old mortgage prepayment performs better than most common retirement savings vehicles, including RRSPs.

“Single individuals and couples with no dependents may be better off accelerating their mortgage payments than contributing to a retirement account,” finds the study. “This is the case for all income levels and savings rates, but particularly for lower-income individuals.”

“Those earning $30,000 annually and saving 2% of their earnings will get a nearly twice higher return by accelerating their mortgage payments compared with saving through an RRSP.”

Click here to read the full CGAAC study results.

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