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Q. Ought to I exploit my and my spouse’s tax-free financial savings accounts (TFSAs) to repay the $150,000 mortgage? It’s my solely present debt and between TFSAs and all our non-registered financial savings we may pay it off on renewal subsequent yr. We’re each 50 years outdated and have labored on and off for 27 years. We earn about $100,000 between us yearly and attempt to save $15,000 to $20,000 of that yearly in TFSAs. We’re pretty frugal and wish to retire at age 60 and would solely count on to get two-thirds of Canada Pension Plan (CPP) every at the moment. We’ve about $200,000 in whole between us in registered retirement financial savings plans (RRSPs) and $15,000 in a financial savings account for emergencies if we use the remainder of the cash to pay down the mortgage. What are the professionals and cons for us of doing this? Will now we have sufficient to retire at age 60 if we carry on this financial savings path? Or, ought to we proceed with mortgage funds as the speed is a reasonably low at 3.5 per cent. —Martin
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