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Retirement Planning

Young Girl With Calculator Planning

The best advice is to start young!

You’re never too young for retirement planning, the truth is the earlier you start the better. Younger couples have long time horizons so they are prime candidates for a “set it and forget” type investment portfolios.

Case in point, back in the 1988 I bought approximately $3,000 worth of a blue chip Canadian dividend fund inside of my RRSP. I was 33 years old and retirement was just a dream back then. Through investment earnings, capital gains, stock splits and investing $50 a month into the fund the value has grown to over $163,000.00

I had invested a total of $18,600 and 26 years of time.

This fund is neither the top performer in my portfolio nor is it a dog, the fund is an average performer.

I invest on average $15,000 into my RRSP on an annual basis as I have no company pension plan. This fund is not the largest single holding in my portfolio.

What this illustrates is that by investing in quality dividend paying companies, starting early in your working career and that by continuing to invest on a regular basis you can accumulate a significant nest egg. This is the magic of compounding.

Having your money work hard for you over a 26 year period of time – really does pay.