The
Turtle Beats the Hare Every Time with RRSPs
Author:
Ivon T. Hughes
One
of the best ways to maximize your retirement nest egg is by contributing
to your Registered Retirement Saving Plan (RRSP) every year rather than skipping
a few years and catching up later. The reason is simple, by contributing
every year, your money has more time to compound and grow tax-deferred.
For
Example:
Contribute
Every Year
* A 25 year old contributes 40 deposits of $1,000/year at the beginning of
each year up to and including age 64
* Earn 6%
* Total RRSP Contributions: $40,000
* RRSP Value at 65: $164,047
Skip
Five Years with "Catch-Up" Contributions
* A 25 year old contributes $5,000 every 5 years, starting in 5 years, at
the beginning of each year up to and including age 64
* Earn 6%
* Total RRSP Contributions: $40,000
* RRSP Value at 65: $145,507
The above example is for illustration purposes only.
By
contributing every year, you will have more money at retirement. In this
example, you would actually have 13% more!
Maximize
the compounding effect and grow your RSP even more by making your annual
contributions through a monthly contribution plan. Let us show you how.
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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