Advice

Tricks of the trade


Do you think that you don't have any money available to put aside for retirement? Think again! Did you know that as of age 35, if you make a small effort each week, you could accumulate a large amount of savings by age 65?

  • By putting aside 41 $ a week, you could accumulate more than 250 000 $.
  • By bringing a lunch to work, instead of buying one, you could accumulate 94 658 $.
  • By buying bottled water in large containers, you could accumulate 56 777 $.
  • By using public transportation instead of your car, you could accumulate 109 684 $.


(According to CNW Telbec )


  1. Begin putting money aside as early as possible!
    By saving early your investments will have more time to grow. Here's an example of the accumulated value an RRSP to which you contribute 100 $ every month until age 60, depending on the age at which you start making contributions.


    Interest rate
    If you begin at 4% 6% 8% 10%
    Age 25 89 992 $ 137 360 $ 214 257 $ 339 879 $
    Age 35 50 885 $ 67 629 $ 90 899 $ 123 332 $
    Age 45 24 466 $ 28 691 $ 33 761 $ 39 844 $


  2. Invest a little or invest a lot, but INVEST!
    Every sum invested counts! Ask your financial institution to make automatic transfers to your investment accounts.

  3. Eliminate as many debts as possible
    Pay off the balance on your credit cards first; the interest rate may be as high as 20%.

  4. Pay off your student loans
    If you income is under 25 000 $, make paying off your student loans a priority. If you income is higher and your total debt is low, contribute to an RRSP and repay your student loan with the RRSP tax deduction. You can kill two birds with one stone!

  5. Prepare for a larger family
    You can expect your income to fall during the time that you or your spouse takes off from work to care for a child.

    Consider putting money into your investments. They will continue to grow during your parental leave and after. Having children does not mean putting your retirement income at risk.

    Stay on course toward your financial goals:

    1. Review your retirement needs with our tool Planning your retirement in 5 steps.
    2. Contribute to a spousal RRSP. The contributing spouse will get a tax deduction and the other spouse will continue to save.


  6. Project your retirement income regularly
    Use CompuPension, our tool for simulating retirement income, at each of life's turning points. Determine your financial needs and adjust your savings plan as needed, with the help of your financial planner.

  7. Consult a financial planner
    You should consult a financial planner as early as possible to find out if your financial, tax and investment strategies are optimal. Then you can make intelligent choices.

    Be sure your financial planner is certified by the Autorité des marchés financiers du Québec.


Not to be missed!