请教金融危机的对策
- 主题发起人 blueday
- 开始时间
You have 100,000 but it is quite difficult to evaluate because we don't know your age, current income level and tax bracket but here is my considerations anyhow:
1) Top your $5000 Tax Free Saving Account for sure.
2) Top your child(ren)'s RESP because you will get 20% from government right away ( there is a limit depends on age of child(ren) )
3) Slowly pour money into non-registered mutual fund investments, say $100-200 biweekly because market is still searching for bottom but you don't want to put $10000 all in one shot.
4) Don't put too much money is RSP because your $100k is already after tax dollar and you don't want to put your after tax dollar back into the tax system again. Contribute into RSP using your employment income only since employment income are consider before tax income.
5) Risk some money into other investments. I will say max $5000, just to try out something new because you sound like never invest in Canada.
6) Mortgage, untouch, or if you want, switch to another lower interest rate bank. A lot of banks offerring 4.99% fix for 5 years. Don't know if its worthwhile to break your current mortgage.
That's all for now. That's only my personal opinion and good luck.
1) Top your $5000 Tax Free Saving Account for sure.
2) Top your child(ren)'s RESP because you will get 20% from government right away ( there is a limit depends on age of child(ren) )
3) Slowly pour money into non-registered mutual fund investments, say $100-200 biweekly because market is still searching for bottom but you don't want to put $10000 all in one shot.
4) Don't put too much money is RSP because your $100k is already after tax dollar and you don't want to put your after tax dollar back into the tax system again. Contribute into RSP using your employment income only since employment income are consider before tax income.
5) Risk some money into other investments. I will say max $5000, just to try out something new because you sound like never invest in Canada.
6) Mortgage, untouch, or if you want, switch to another lower interest rate bank. A lot of banks offerring 4.99% fix for 5 years. Don't know if its worthwhile to break your current mortgage.
That's all for now. That's only my personal opinion and good luck.
If I were you, I would pay the mortgage off first. Your rate is high. Right now it is hard to get return 6.65% from any investment. If you need money
to invest in another property in the future, you can remortgage your current house and take your money out.
If you buy RESP, try to use GIC with a rate 4.3% from BMO. Plus 20% from government it is pretty good return. I would avoid mutual funds now.
to invest in another property in the future, you can remortgage your current house and take your money out.
If you buy RESP, try to use GIC with a rate 4.3% from BMO. Plus 20% from government it is pretty good return. I would avoid mutual funds now.
I personally won't pay off the mortgage using the money and it's like putting all money in a basket.
You can't eat a house when you retired, you paid off the house doesn't mean you will have money when you retired. The house cannot remortgage when you retired and have no income. Then you are stuck. Cash is our best friend, not the house.
Althought you can save up some money when the mortgage principle reduced, but by just saving up the princple won't help you in the big picture. Most individuals must do some sort of investment in order to have their money grows.
Invest in mutual fund might not good for everyone, but many people are taking advantage of the extremely low price.
You can't eat a house when you retired, you paid off the house doesn't mean you will have money when you retired. The house cannot remortgage when you retired and have no income. Then you are stuck. Cash is our best friend, not the house.
Althought you can save up some money when the mortgage principle reduced, but by just saving up the princple won't help you in the big picture. Most individuals must do some sort of investment in order to have their money grows.
Invest in mutual fund might not good for everyone, but many people are taking advantage of the extremely low price.
Suggestions:
1. top up the Tax Saving Account up to $5000/person. (which is officially available on Jan 2, 2009)
- the gain/profit is not subject to taxation.
2. top up RESP for your child(ren).
- get the governement money when you contribute to RESP. Why not?
3. pay off your mortgage, and get a secured line of credit up to 80% of the fair market value of your home
- you will save the mortgage interest.
- the secured line of credit is the same as home equity line of credit, which uses your home to back your loan.
- the mortgage insurance is not required if the loan is less than 80% market value of your home
- if you don't borrow from the LOC, you need not to pay interest of the credit.
- if you want to invest in the future, borrow the money from the line of credit (LOC)to invest. It is becasue the interest you paid for the LOC is considered as an expense of your investment. If your investment has a positive return (or profit), you can deduct the LOC interest expense from the profit to determine the net profit. The net profit is subject to capital gain, dividend or interest income tax.
The above is based on the assumption that you live in Canada. As usual, ask your accountant for taxation details.
1. top up the Tax Saving Account up to $5000/person. (which is officially available on Jan 2, 2009)
- the gain/profit is not subject to taxation.
2. top up RESP for your child(ren).
- get the governement money when you contribute to RESP. Why not?
3. pay off your mortgage, and get a secured line of credit up to 80% of the fair market value of your home
- you will save the mortgage interest.
- the secured line of credit is the same as home equity line of credit, which uses your home to back your loan.
- the mortgage insurance is not required if the loan is less than 80% market value of your home
- if you don't borrow from the LOC, you need not to pay interest of the credit.
- if you want to invest in the future, borrow the money from the line of credit (LOC)to invest. It is becasue the interest you paid for the LOC is considered as an expense of your investment. If your investment has a positive return (or profit), you can deduct the LOC interest expense from the profit to determine the net profit. The net profit is subject to capital gain, dividend or interest income tax.
The above is based on the assumption that you live in Canada. As usual, ask your accountant for taxation details.
Well, investment doesn't mean you have to be in mutual fund or stock. GIC is a good vehicle for many people although they lose money in the long run with the inflation.
