Saving strategies

Whether you are building your RRSP, your TFSA or other savings, there are some simple strategies you can use to help you accumulate wealth:

Start saving early

Judy invests $3,000 a year from the age of 30 until she retires at 65.

Frank waits until he is 45 to start saving and invests $6,000 a year until he retires at 65. Even though Frank invested $15,000 more, his account is worth $114,407 less than Judy's.

Saving strategies

Source: Empire Life, assumes 6% rate of return
For illustration purposes only, actual rates of return may be higher or lower and are not guaranteed.

Invest regularly

Setting up a monthly investment plan can:

  • help you develop a disciplined approach to investing
  • be easier to manage than larger one-time investments
  • provide the benefits of dollar cost averaging – you buy more units when prices are low and fewer units when prices are high

Stay invested

Missing the best days can affect your returns

Saving Strategies

Source: Empire Life and Bloomberg as of October 31, 2011

For illustration purpose only, assumptions based on using S&P/TSX Composite Index closing price for the period of October 31, 1996 to October 31, 2011. Assumes gross dividend reinvested at the beginning of the next day. Missed top performance day is by ranking total return and take out days with top total returns.