Starting young is the best way to achieve financial security
You’ve recently graduated, have landed a great job, and you’re making your own money for the first time. You could spend some of it on a vacation, a new car … or you could start investing for your future.
When you’re a young Canadian strapped for cash, with student loans to pay off and lots of new lifestyle expenses, it’s difficult to save for the future. Even if you start small, start now. The longer you are in the markets, the more your savings will grow over time.
Check out this example:
- Mary invests $300 per month, starting at 20 years old. Assuming a pre-tax return of 7%, by age 65 she will have $1,066,896¹ in pre-tax savings.
- Lynn also invests $300 per month, but waits until she is 30 years old. Assuming the same pre-tax return of 7%, by age 65, Lynn would only have $516,132¹ in pre-tax savings.
For your best financial outcome, start investing early and develop good financial habits. Even if you only have a little money to invest, a financial planner will be happy to help you. It’s in their interest to establish a relationship with young investors who will be clients for a long time.
June 26, 2015
RRSP investments assuming a pre-tax rate of return of 7%. The rate of return shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values or returns on investment.
This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.