Planning for a Secure Retirement
With modern medical advances and increased standards of living, people can plan on spending one quarter of their lives in retirement. Everybody has heard it before: It's never too early to begin saving for your retirement. It's true. The effect of compound interest is significant.
One example of this accumulation of interest, is the story of Jerry and Kiera. Kiera started to invest in RRSPs when she was 19 years old. She contributed $2,000 a year until she was 26 years old, then she bought a house and decided her money was better spent on the mortgage. She never contributed another dime to RRSPs. Jerry, on the other hand, started to invest in RRSPs when he was 27. He invested $2,000 a year, every year until he turned 65.
On Kiera's 65th birthday, her RRSPs were worth $1,035,161. If you take her initial investment away she made a total of $1,019,161. Her investment grew 64 fold. On Jerry's 65th birthday his investment was worth $883,185. If you take away his initial investment away he made a total of $805,185. His investment grew 10 fold. This example is based on a yearly growth rate of 10% and it really shows how important it is to start planning for your retirement as early as possible.
Let Us Help
At OMISTA Credit Union, our people can help you organize your finances so your retirement will be secure. Ask us about our RRSPs and Term Deposits.
Here are a couple of things to ask yourself before getting started. When would you like to retire and where would you like to live? What type of lifestyle do you see yourself living?
It's also a good idea to decide how much risk you are comfortable with. Any investment is a gamble to some extent. You may need to complete a risk profile before we can guide you in your investments. There's a lot of information on the internet on this subject, or you can ask OMISTA Credit Union any questions you may have.
It's always a good idea to get a personal financial planner who can talk to you about your options and put together an investment portfolio that will allow you to enjoy your retirement the way you want to.