A
Stitch in Time Saves Nine
Author:
Ivon T. Hughes
By
contributing to your Registered Retirement Saving Plan (RRSP) at a younger
age, you accumulate more money for retirement with less deposits. The reason
is simple, by contributing early, your money has more time to compound your
returns and grow tax-deferred. There are more options for using RRSPs other
than retirement. You may wish to use part of your RRSP funds for a down-payment
on your first home under the Home Buyer's Plan or draw on your RRSPs to help
finance your own or your spouse's education under the Lifelong Learning Plan.
For
Example:
Start
at Age 25
* Contribute 40 deposits of $2,000/year at the beginning of each year up
to and including age 64
* Earn 6%
* Total RRSP Contributions: $80,000
* RRSP Value at 65: $328,095
Start
at Age 45
* Contribute 20 deposits of $8,000/year at the beginning of each year up
to and including age 64
* Earn 6%
* Total RRSP Contributions: $160,000
* RRSP Value at 65: $311,942
The above example is for illustration purposes only.
By
starting at age 25, you will have more money at retirement than starting
at age 40 even when your deposits have quadrupled (to $8,000 from $2,000)
and total contributions have doubled (to $160,000 from $80,000).
We
can help you secure your financial future by ensuring you have enough money
to retire comfortably. Contact us for more information on creative ways to
make up for lost time or visit our website.
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: [email protected]
Web: http://www.trustco.ca
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