View Full Version : What to do with tax return?
dubhead
03-30-2014, 08:30 PM
First year out of school so I am getting a decent sized tax return(~6k) I was wondering what the financial gurus of beyond think would be the best utilization of this money. My choices in order of what I'm thinking are:
1.Stick in RRSP and see another decent return next year.
2.Pay off remaining VISA (~6k)
3.Use for down payment on new car
4.Pay down student loans
bmeier
03-30-2014, 08:31 PM
Pay off your debt.
woodywoodford
03-30-2014, 08:33 PM
Definitely not the car. Pay off the visa and chop it up.
killramos
03-30-2014, 08:37 PM
Pay off highest interest bearing account.
That being said if you are buying the car anyways use it for that. Car loan is likely the highest interest.
davidI
03-30-2014, 08:43 PM
Pay off your Visa. The fact you even have that much visa debt and you're considering an RRSP or downpayment on a new car is scary.
ExtraSlow
03-30-2014, 08:45 PM
Pay the Visa 100% for sure.
Anyone with credit card debt should not be paying down student loans or investing in RRSP.
Asian_defender
03-30-2014, 08:50 PM
This beyond here, go out and buy a car
BrknFngrs
03-30-2014, 08:51 PM
Originally posted by ExtraSlow
Pay the Visa 100% for sure.
Anyone with credit card debt should not be paying down student loans or investing in RRSP.
Agreed completely and I wouldn't be looking at a car loan until you've cleaned up the visa either.
rob the knob
03-30-2014, 08:59 PM
casino first, than take winnings for 1,2,3,4
Disoblige
03-30-2014, 09:02 PM
No brainer there, VISA.
EF9 Sedan
03-30-2014, 09:10 PM
Originally posted by rob the knob
casino first, than take winnings for 1,2,3,4
:rofl:
403ep3
03-30-2014, 09:33 PM
lol considering credit cards have stupid interest rates this is a no-brainer.
There's really only two choices for you:
1. Visa
2. Student loans
dubhead
03-30-2014, 09:40 PM
Originally posted by rob the knob
casino first, than take winnings for 1,2,3,4
Now why didn't I think of that.
Well VISA it is which was the original plan. My thinking behind RRSP contribution is it would net me ~$2000 in taxes back next year + gains in RRSP, where as the VISA would cost me ~$1000 in interest over the year if left as is, which would not be the case. So if I left it completely as is I would come out $1000 on top if I put it in RRSP.
Disoblige
03-30-2014, 09:55 PM
It would cost you $1000 in interest let's say, but then you still have that VISA debt and money stuck in your RRSP. So I don't think you'd come out ahead unless you're planning to pay off that VISA within the year.
pheoxs
03-30-2014, 10:00 PM
Originally posted by dubhead
Now why didn't I think of that.
Well VISA it is which was the original plan. My thinking behind RRSP contribution is it would net me ~$2000 in taxes back next year + gains in RRSP, where as the VISA would cost me ~$1000 in interest over the year if left as is, which would not be the case. So if I left it completely as is I would come out $1000 on top if I put it in RRSP.
Rrsp contribution is only a one time thing. Use it when you're making more money.
Pay off the credit card, don't waste the money paying 20% interest. This shouldn't even be a question.
dubhead
03-30-2014, 10:19 PM
Figure i had it framed up wrong. On the VISA it goes
Originally posted by dubhead
Figure i had it framed up wrong. On the VISA it goes
Good call.
guessboi
03-30-2014, 10:59 PM
+1 Visa No doubt.
Powered by vBulletin® Version 4.2.4 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.