Stocks, bonds and RRSPs oh my!

Well it has come down to the planning of the big party after working my ass off! I figure throw some money at some stacks watch it grow and I'll live comfortably after that, no so! Some people say pay off the mortgage, some say max out the RRSPs , some say screw RRSPs and buy stocks. What to do?

1 paying off the mortgage faster does have its advantages, reduce debt, have more to invest later plus save the interest that you'd have paid. Cons to that line of thinking, if you can make 7-9% on stocks you just lost 2-4% or more that you've could have made over paying off the mortgage.

2 Max out the RRSPs. if you can stuff 19% of your gross income of extra money that is floating around out there into an RRSP you'll save the money that you'll pay by reducing your tax bracket down and get a bigger refund, which in turn can be re-rolled into the RRSP and get save you money that you can invest elsewhere. While the investment within the RRSP is not taxed until you either withdraw it or you turn 71. you are forced to pay taxes by converting the RRSPs into RIFs at age 71

3 Stocks and bonds do not provide a tax shelter for your investments while you accumulate them, capital gains and dividends, they are 100% yours at age 71 and you don't have to convert your portfolio. The stocks and bonds route is a much more risky route, you can loose it all , but also can provide the most gain of the three methods of investment.

ah, as dreams of having a comfortable retirement dance in my head the choices I make today can have a big impact on my lifestyle of tomorrow!