Hey hey...
Here's our current situation:
I'm well aware of the penalties of withdrawing RSP. My question is if this is a good move or not? In order to meet our monthly needs, the student loan (wife's) would need to be paid off and I would have to suspend my RSP contribution that happens regularly off every paycheck. Even then, we need to tighten up our belts to make it happen. If we do both the student loan and pay off the car (2010 Hyundai, if it matters), I wouldn't have to suspend my contributions and we should be in much better shape monthly to be a 1 income family. I'm not sure if the reduction in tax rates from being 1 income will fully compensate for the penalty of early withdraw of RSP funds.
Does this sound like a valid strategy or am I just a loony?
Cheers!
Here's our current situation:
- Mom is at home on maternity leave until July
- monthly income from working parent not sufficient to support family with current debt repayment levels
- enough money exists in retirement funds to pay off monthly debts
- monthly debts are student loans and car payment
- monthly income from working parent is sufficient if there are no student loan or car loan payments
I'm well aware of the penalties of withdrawing RSP. My question is if this is a good move or not? In order to meet our monthly needs, the student loan (wife's) would need to be paid off and I would have to suspend my RSP contribution that happens regularly off every paycheck. Even then, we need to tighten up our belts to make it happen. If we do both the student loan and pay off the car (2010 Hyundai, if it matters), I wouldn't have to suspend my contributions and we should be in much better shape monthly to be a 1 income family. I'm not sure if the reduction in tax rates from being 1 income will fully compensate for the penalty of early withdraw of RSP funds.
Does this sound like a valid strategy or am I just a loony?
Cheers!