Debt!!!
Mr: Mustache:
Line of credit at Prime + 0.5% $75k
Student Loan at Prime + 3.5% $35k
Mrs: Mustache:
Line of credit at Prime + 1% $30k
I would as follows:
- RRSP
- Debt (at the same time as RRSP if possible)
- TFSA
The debt first because even though lately we've been in a massive bull market, paying off the debt is a
guaranteed 3.85 to 6.35% return.
Guaranteed. Some will say, "Oh, but the market did 13% last year--you should do that instead." Which proves they're screwballs. Markets even out over the long-term--it could even be -2% this year. Completely possible. Who the hell knows? What I'm saying is, one return is guaranteed while the other isn't. ...If your loan was 1% or less, I'd say, what the hell--take the gamble, but it's not.
TFSA--sure it'd be nice to have something in there now compounding away like crazy, but the contribution room will always be there when you get the rest of the house in order.
Re: Income splitting. The Canuck Feds just made the deal way,
way sweeter last week. To the point I almost wish I had a significant other just to do that with. Definitely keep an eye on it!!