Bit of financial help needed

[Haps]

[QUOTE=Daniel A.;143282]

It was more of a question of this specific scenario.
I have a DB pension on the way and already invest 6% of my gross with a 3% match directly thru work.

The 6% and 3% has me confused, are you talking DC pension or some savings plan.
Are you sure you have a DB pension and not a DC pension ?

Yes I have a DB pension. In addition to that we have a company matching savings plan.

[Andre]

That depends on how much money you already have invested, your current investment habits, and your tolerance for risk.

I don't think leveraged investment strategies are a good idea for anyone that isn't already a seasoned investor. First of all, if I read your math right, you're paying a 6% interest rate on the loan, and will receive 6% interest on whatever debt instrument you're using the funds to buy. Nowhere in there do I see any consideration of inflation, which you should assume will be about 2.5% per annum over the long term. So this strategy is an immediate loss, when you consider cost of living increases.

My thoughts? Start stashing away your money now. When you're 7-10 years away from retirement, you can always reassess. If you're behind, there are all sorts of ways to get caught up.

Scenario A: Borrow 97k from lines of credit assuming a 6% interest in order to purchase RRSP again assuming 6% interest rate. When I run the scenario thru tax software I'd be looking at a refund of37kish. So I'm left with 60k owing.

So take $600 a month for the next 10years to pay off that 60k and then when down contribute that 600 a month to the RRSP.

Scenario B: Don't bother borrowing and just start contributing the $600 a month to an RRSP(assuming the same 6% returns)