By June 14, 2017 Read More →

Time is Your Ally

Time is Your Ally
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Putting time on your side is one of the best financial planning strategies you can use with your RRSP.

Investing a fixed amount at regular intervals is an excellent way to start, even if your contributions are small at first.

See the example below in the calculator to see the impact of starting early.

Amy, the Early Starter, starts investing $100 per month at age 25 for 15 years until age 40. She then stops contributing for the next 25 years and watches her $18,000 in total contributions grow to $90,514 by the time she reaches age 65.

Jeff, the Late Bloomer, doesn’t start investing until he is age 40 He contributes a total of $30,000 over 25 years and watches his RRSP grow to $59,551 at age 65.

Amy puts time on her side by making contributions to her RRSP earlier in her career.She winds up with $30,963 more in her RRSP even though she contributes $12,000 less than Jeff and contributes for 15 years instead of 25 years.

See Also: Tale of Two RRSPs

Use this calculator to see the importance of early contributions to your RRSP.

Time is on Your Side Calculator

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