Kinda O/T - RRSP contributions using loan money

[treva]

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Reading the "How to make a million a year" thread really got me thinking about my own financial planning.

Currently I have an RRSP which I've just sort of been putting money into whenever I could afford it. As an undergrad, I never really had a regular income so it was hard to make a regular contribution.

Now that I am a med student, I am relying largely on student loans to float me through med school. I was wondering, do you think it'd be a good idea to set up a monthly regular contribution of something small, say $20 a month, into my RRSP? This would be loan money I'd be re-investing. Considering that $20 is fairly small, I think this is a good idea.

What do the business wiz's out there think? More or less? None at all?

 

[threemae]

What do your loans cost, 6.7% What can you reasonably expect from an average investment portfolio? About 7% over 10-15 years.

Putting money into investments is better than spending it, but if you can reduce your overall loans, that's like an investment as well.

 

[Twitch]

Reading the "How to make a million a year" thread really got me thinking about my own financial planning.

Currently I have an RRSP which I've just sort of been putting money into whenever I could afford it. As an undergrad, I never really had a regular income so it was hard to make a regular contribution.

Now that I am a med student, I am relying largely on student loans to float me through med school. I was wondering, do you think it'd be a good idea to set up a monthly regular contribution of something small, say $20 a month, into my RRSP? This would be loan money I'd be re-investing. Considering that $20 is fairly small, I think this is a good idea.

What do the business wiz's out there think? More or less? None at all?

Leveraging student loan money for retirement is typically a bad idea. This should really be moved to the finance section. Look in there, this has been discussed before. Though not specifically from (I'm guessing you're) Canadian perspective as it relates to RRSP.