Bank of Montreal : BMO's Financial Tip of the Week: Key to Retirement Savings Success...Save Early, Save Often
January 10, 2012 at 10:13 am EST
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TORONTO, ONTARIO--(Marketwire - Jan. 10, 2012) - As part of
BMO Financial Group's ongoing commitment to financial
literacy and 'Making Money Make Sense' for
Canadians, BMO will be releasing a financial tip every week
in 2012.
BMO's Tip of the Week:
Secure your retirement by opening a Registered
Retirement Savings Plan (RRSP) as early as possible and
contribute to it on a regular basis (regardless of the
amount)
Opening an RRSP early in life, combined with making regular
contributions, is one of the most effective ways to ensure
you will have enough funds to see you through your
retirement years.
Start off investing small amounts and gradually increase
them as the years progress; this will help boost the
value of your RRSP. Additionally, increasing your
contributions as your salary rises through the years is a
great strategy that can help increase your RRSP
savings.
Investing consistently over a longer period of time can
benefit your portfolio, even in times of market
volatility. As you are purchasing more shares when prices
are low and less when prices are high, your average
return will be greater than if you invested all your
money at once.
Pre-authorized payment plans, through automatic payments
from your paycheque or bank account, are an effective way
to ensure regular contributions are made to your RRSP
account and will help ensure you are saving on a regular
basis.
Sit down with a financial professional who can help you
develop a strategy for making regular RRSP contributions
that work for you.
Start investing at age 30
Start investing at age 40
Retirement Age
65
65
Monthly Contributions
$
100
$
100
Rate of Return
7
%
7
%
Total Savings
$
180,105
$
81,007
Difference
$99,098
"Saving for retirement is all about starting as early
on in life as possible and making contributions on a
regular basis," said Tina Di Vito, Head, BMO
Retirement Institute and author of 52 Ways to Wreck
Your Retirement… and How to Rescue It. "Starting
early, even with small, regular amounts, can greatly
contribute to your savings down the road."
BMO's Financial Tip of the Week:
: Consider investing in a Registered Retirement Savings
Plan (RRSP) and take advantage of tax incentives when
saving for retirement.
Media Contacts:
Rachael Mckay, Toronto
416-867-3996
rachael.mckay@bmo.com
Sarah Bensadoun, Montreal
514-877-8224
sarah.bensadoun@bmo.com
Laurie Grant, Vancouver
604-665-7596
laurie.grant@bmo.com
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Bank of Montreal (BMO) is a Canada-based company, which offers a wide range of personal banking services. The Company is engaged in providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to customers across Canada, the United States, and in select markets globally. The Company offers services, such as bank accounts, credit cards, mortgages, loans, investments, creditor insurance, and travel insurance. The Companyâs segments include P&C, U.S. P&C, Total P&C, BMO Wealth Management, BMO Capital Markets, and Corporate Services. Its bank accounts include checking accounts, and savings accounts. Its credit card services include no fee, low interest, cash back, BMO Rewards, AIR MILES, travel, and lifestyle. Its credit cards include BMO eclipse Visa Infinite Card, BMO Ascend World Elite Mastercard, BMO eclipse Visa Infinite Privilege Card, BMO Preferred Rate Mastercard and BMO CashBack Mastercard.