Now that RRSP season is over, it\'s time to think about what you are going to do with your refund. To some, it seems like found money. But to the discerning investor, this refund can be put to work for the sake of wealth creation. Here are a few ideas to consider going forward:

1)_ Pay back your RRSP loan.

Nobody likes debt. So, if you borrowed for your RRSP, pay down the loan. You will less interest and increase the long term effectiveness of your strategy. Also, with the reduced debt load, you can increase your monthly contributions to things like your RRSP, or better yet, the VACATION Fund!!

2) Pay down Your Mortgage

So many times, people ask me �Should I contribute to my RRSP or paydown my mortgage.� The answer has always been an emphatic �both.� That is to say, you should contribute to an RRSP, and with the refund reduce your mortgage. And it works beautifully. Let\'s say you owe $100,000 at 5.9% with 20 years left on your amortization. A $1000 repayment would shorten your payback by four months and save you $2218 in interest.

3) Pay down your Consumer loan.

Some of those credit cards come with pretty hefty interest rates approaching 20 percent. Best to get those out of the way asap.

4) Make your 2003 Contribution.

The beauty of an RRSP is that it accumulates tax deferred. Putting your money in early in the year allows for additional time to compound. And we all know the advantages of long term compounding!

5) Consider putting the Refund into your child\'s RESP

Now that the government kicks in 20 percent for every dollar you contribute to an RESP, they have become the vehicle of choice for education savings programs.

6) Top up your emergency fund

You never know what and how your life challenges will crop up. It\'s always advisable to have an emergency fund for �just in case� type of situations.

7) Bank it

Does your bank waive fees if you keep $1000 balance in your account? The fees might be just $5 per month, but they add up.

8) Give it away to a worthwhile charity of your choice
Revenue Canada has made it more attractive for Canadians to give their money away and creating tax credits and deductions.

This article was written by John Klotz., BA., CFP., CLU., CH.F.C., RHU

John is Vice President - Financial Services for LMS Prolink Ltd. You can reach him at (416)-595-7484 ext. 305 or email at johnk@lms.ca