Quote:
Originally Posted by return to the red
I've only maxed out my RRSP's once so far, reason being I would rather make sure all my outstanding debt (car loan, visa, etc. )is cleared up.
I guess it really depends on the state of life you are in. Being only 27 and having 2 fairly new vehicles '03 & '05 (one completely paid off and the other nearly paid off), Student loans paid off, and only about 50k left to pay off on my mortgage, I look at it that if I can pay all this stuff off then I have that much more to contribute to RRSP's when I'm in my late thirty's and forty's. I would also like to have as little debt as possible when it comes time to start a family
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The major gains in RRSPs come from interest rather than principal. The longer your money is in the RRSP, the more interest it earns, the faster it grows.
If you can afford to put a little extra into your RRSP now, it will do a lot more work for you over the next 15 years that it can't do if you wait until your late 30s/early 40s.