Making your money work for you as well as getting started as soon as possible are two big keys to retirement savings. Even a little bit at a time can make a huge difference. For example: What if a 35 year old started putting $50 per month away into a Tax Free Savings Account (TFSA), and continued until they retired at age 65 (30 years)? Over 30 years, theyd have put away a total of $18,000. In a simple savings account thats giving them a generous 2%, theyd end up with $24,603.74. Invested with consistent returns of just 5% and theyd see that increase to a total of $40,934.89. If they managed to consistently invest and return 8%, this total jumps even further to $70,880.66. All of this on just $50 per month, and a total of $18,000 saved over 30 years. This is known as the magic of compounding, and can really work in your favour if you both give yourself as much time as possible to save, as well as make sure the money is working for you. If you have questions or want to start exploring whats available, dont hesitate to contact me to discuss your options!
Posted on: Wed, 06 Nov 2013 15:38:03 +0000
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