VTI: 30 year CAGR: 9.9%
TSX: 50 year CAGR: 7.94%
43 year old townhouse in North Van: 20 year personal CAGR: 7.3% bought just before the olympics were announced. The biggest problem is we can’t eat or travel with our walls and windows.
Wealth killer, I think not. Damper, maybe.
But…
Mortgage got paid off in 14 years in times where interest rates were higher than now (I think?), knowing literally nothing about investing a year before this thread started.
Maintained a 6% of income matched savings rate (-2% in fees) to work sponsored RRSP plans since graduation, and killed the mortgage early by paying it off more with any bonus or raise. Didn’t save much more than a 10k cash emergency fund before the mortgage was killed.
All the practice with silly high mortgage payments resulted in being used to a silly high savings rate (50-60% for ten years post mortgage), instead of buying into expensive car culture.
The best time to plant a tree was 20 years ago. The second best time is now.
Whatever you do, diversify. Past performance does not guarantee future results.
The biggest advice I have is to understand how RRSP and tax brackets work in making your mortgage vs savings decisions.
Cliches /end