Today's show is a rebroadcast from Season #1.  It's one of our most down-loaded shows, because it answers a common question: Should I pay down my debt, or contribute to my RRSP?  The answer is not always obvious.

We all know that investing in an RRSP generates a tax refund.  If you are in the 40% tax bracket, a $1,000 contribution to your RRSP generates a $400 tax refund.  (Of course I'm over-simplifying this example; your actual tax refund will depend on your marginal tax rate, and many other factors).  $400 sounds great, so why would I ever use that $1,000 to pay down debt?  Isn't the RRSP contribution always the best answer?

No.

As we discuss on the show, this is largely a math question.