I was looking over our accounts tonight, seeing how we were doing so far this month. I clicked on my TFSA, curious what the interest rate is at… 0.60% Hmmm. I knew it was low but not that low. We make more interest on the high interest savings account than my TFSA… I click on our LOC: 6.7%
I wonder over to G, let him know. After about an hour of discussing we have agreed that I am going to withdrawal my entire TFSA, all $8855.79 of it, close out my TFSA (and stop contributions) at our bank and pay off our LOC. That will leave us with $1355.79 that I will open a TFSA investment account with at Tangerine and restart my $200 biweekly contributions (not skipping one if all the paperwork goes smoothly). Our goal for the rest of the year will be to top up out Emergency Fund once again, but instead of the $5000 we had before we want to increase this to $10,000 - we just feel more comfortable with this number given our dogs health & owning a home.
A lot of decisions were made tonight, but I’m honestly feeling really good about this. G even suggested once we get any windfall of money and our emergency fund is starting to fill up we can do a lot more lump sum payments to my TFSA to fill it back up. We definitely aren’t going to inflate our life style since we both agreed we live pretty darn well on our budget right now. I’m really happy with where we are going to be at the end of this month. Pretty much a 6% return just by filling out a few forms!
Bye-bye car loan!!