For the average Canadian, the decisions about where to invest extra cash can be overwhelming to say the least. So many acronyms…RRSP, RESP, TFSA, need I go on?? Many people rely on experts in select fields to help them make these decisions, while many self-educate and make the decisions themselves. Whichever category you fall into, the decisions remain difficult but tend to be some of the most important decisions a person will make in their lives.
Put another way, I’ve heard time and time again how the purchase of a home is the most important financial decision a person will make in their lives. Well, I would argue that this may not be true. Don’t get me wrong – houses are great! I live in one and I like it very much. But the annual decisions a person or a family makes about where to invest will add up to far more than the purchase of a home! Let’s say the average family has $10,000 of extra money to invest in any given year:
- If you have kids, you might consider an RESP contribution (up to specified maximums of course)…
- If you’ve accumulated contribution room in your RRSP, that might be a good option…
- If your RRSP is tapped out, a TFSA is a great tax shelter…
The sum of these annual investments could potentially be WAY more than the value of your home after 20 or 30 years of investing! This is a simple way of looking at a very complex issue but hopefully will make someone out there in internet-land realize the importance of the choices many families make this time of year!
The Funny Accountant
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Also, for a witty and insightful read, check out the wifey’s blog. It’s funny and good.
And, last but not least, Anthony Housefather, our sitting Mayor here in Cote Saint-Luc, Quebec is running for the Liberal Party of Canada’s nomination in the Federal riding of Mont-Royal. In my opinion, he is clearly the best man for the job and it is my hope that others might have an interest in helping Anthony to achieve his goal of winning the Party’s nomination and making his way into the House of Commons as a Member of Parliament. If you live in the Mont Royal district and are interested in supporting Mayor Housefather’s campaign, please follow this link and sign up as a member of the Liberal Party (a $10 cost for the year). When the time comes, sometime later this year, you can then help nominate Anthony Housefather as Liberal candidate in our riding! Good luck Anthony!