• A few days ago I was at my local TD as I was going to make a significant lump sum payment towards my mortgage.
• When the banker saw what the amount I'd be paying off they recommended I speak to a personal advisor.
• The personal advisor said it's better to invest the money in HISA or GICs – without really giving much other info.
• I then countered that at my current marginal tax rate, in a non-registered GIC (as my TFSA/RRSP are already maxed out) after taxes I would stand to make less than the amount I would save on the interest payments over the term of the said GIC (we were looking at 1-2 year GICs). The math was not particularly complex.
  • Quickly the financial advisor realized I was not some chump they could convince to buy into their stupid HISA or GIC offerings.
• But the point is if you blindly follow the advice of money advisors – who let's be honest aren't exactly Goldman Sachs IBs – you're probably going to get some generic advice designed to maximize the bank's profits not necessarily what's best for YOU.

The bottom line is financial literacy is paramount to know what's good for you and what isn't. Otherwise, you are a rudderless boat – floating around directionless not knowing where you have come from and where you are going.

PS: if it matters knocked out yet another 15% of my mortgage – here's to being debt free sooner and getting these loan shark banks off my case! 🙂