by Kelly Collier, CMA, B.Comm
To build a solid financial base for your children’s future and your retirement, start young or now. This allows you to take advantage of the time value of money. Ideally, you want to be saving 10% of your income. If your circumstances don’t allow you to do this right away, start smaller and work up to it.
A simple way to start is to make monthly contributions to a Registered Retirement Savings Plan (RRSP). You can contribute as little as $50 per month and it is tax deductable. The money can be used to buy safe investments such as Guaranteed Investment Certificates.
Many companies have a plan set up where they will deduct a monthly amount from your pay cheque and then contribute your deduction into an RRSP with a financial institution on your behalf. Some companies may even match all or a portion of your contribution, so be sure to take advantage of this benefit. This is a very convenient way to start or build your savings plan. If your company can’t do this for you, your bank will be able to arrange to take a monthly amount directly from your bank account.