Invest or pay off debt 2021?

Ahh the age old question: Should I invest or pay off debt?

To answer this question, you first have to look at what kind of debt you have.

Do you have high interest debt? Ie. credit card debt, private loan, etc.  Any debt where the interest is over 8% now a days is high interest debt. If this is the case, the answer is easy, pay off this high interest debt. 

But what if you have other basic debt? Ie. mortgage on your house.

This question used to be a difficult one to answer. Today this is an easy answer.  INVEST!!!

Our father always says to us, “I don’t know how you sleep at night with a mortgage.”

Our answer back? “Easy. Our appreciating, income producing assets help us sleep well.”

Sadly, if you are responsible enough to pay down debts like your mortgage, you are getting penalized. That’s because assets are climbing faster than your income and the interest on your loan.

And why is this the case?

We live in a different world than our parents and grandparents did. Low interest rates, huge government debt levels, and money printing. Top it off with technology replacing jobs, and we have a whole pot of messes for the average Canadian.

But for anyone paying attention, there is a way to get out of this trap.

Focus on acquiring assets and income.

Seriously. The government has given you their playbook. They are telling you, asset holder have gotten wealthier and will continue to get wealthier because of government spending. We shared the video with you a couple of weeks ago from parliament.

We truly believe this country will turn into haves and have nots. Those with assets, and those without.

Our biggest fear is that one day, the people that ignore this message and not acquire assets will look at those that purchased assets as the enemy.

So we want to share this message with as many Canadians as we can.

So should you invest or pay off your debt? We truly believe that the answer is invest. While interest rates remain low, this is the only way to keep up with rising asset prices.


Vince & Mike

P.S. This next 10-20 years will be much different than the last. Don’t just do what everyone else is doing. Because most likely, they will be in the category of have nots.