# help with the next step



## ibex (May 17, 2011)

Hello to all, I've been reading this forum for some time and finally decided to jump in and am looking for ideas and maybe some direction. Here are the details:

Married early thirties both professionals and working full time for the past 5 years. Income appr $15,500/mth
RRSP's- $80,150
MM account- $147,000
Vehicles- $60,000

We have 2 homes, the first is currently being rented out as we moved for employment and our market has not bounced back yet, it is revenue negative appr. $100/mth which helps reduce our end year taxes. Equity in home appr. $125,000 exclusively due to down payment.

Second place is our primary residence with appr $140,000 equity. Downpayment+value increase.

We have paid off our debt aggressively and are now debt free minus the mortgages. I'm looking for advice on things we could be doing better or something I'm missing. Thanks in advance.

Added info: I participate in a Government DB pension plan, my wife does not. Thanks


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## I'm Howard (Oct 13, 2010)

TFSA?

I would not be in a hury with RRSP's if you have a Government DB Pension, you might be deferring yourself into paying higher taxes in the future.

You cannot put a value on what you think your house has increased to, it is worth what you can sell it for, you might think it worth $800,000 but if the best offer you get is $650,000?

I would sell your rental property, who knows which way the market is going to move?

The monies you get from that you could reduce the mortgage on your primary residance, and if you like Home Ownership, take a loan against your primary residance, buy another place to rent out, and deduct the interest you pay from the income.

I would consider buying a Recreational Property, rent it out and you might also use it when it is not rented,but still the interest is deductible.

The next question you might want to ask us is how the DIY at this board would allocate the monies you have saved in the RRSP's etc??

Are you planning children , will your wife continue to work?

The Conservatives are cuting 50,000 Government Jobs, will yours be one of them???


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## ibex (May 17, 2011)

Thanks for the reply, I guess my thinking about the RRSP's are that I am in the highest tax bracket now so getting the tax deduction is a benefit. Looking at couch potato portfolio for the existing RRSP's and am in the process of purchasing TFSA for myself and wife. We are not planning on kids... dogs, horses are enough. My job is about as stable as they come as a union emergency health care professional in the far North. Again, any further insight in regards to investing or anything else is appreciated.


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