How to get 4% to 8% more from your RRSP
It’s simple. Instead of waiting until the end of the
year to make your contribution, make it at the beginning of
the year.
Here’s the result of an annual contribution of $5,000
made in 3 different ways. In each case it’s assumed
that the annual growth rate is 8%.
$5,000 at end of year for 30 years is worth $566,000 $5,000 in 12 equal installments for 30 years is worth $587,000 $5,000 at beginning of year for 30 years is worth $611,000
Investing monthly gives an extra $21,000. The lump sum at
the beginning of the year gives an extra $45,000. So why wait?
Get the biggest bang for your dollar by either investing throughout
the year or even better, with a lump sum at the beginning.
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