Matthew - Account Manager

Was investing for the future something you always meant to start, but every time you thought about it, you decided to wait until you had a bit more money to set aside? Well you're not alone, and you're not too late. The truth is, it's never too late to start investing.

That's because no matter when you start investing, your money will grow over time. By starting now, your money will have more time to grow and you will benefit from what we call "compound growth."

What's compound growth? Well, when you invest, you hope to earn investment income, otherwise known as a 'return'. If you keep investing your returns, along with the money you started out with, these two together, will grow over time. This is called compounding.

Take a look at this example. Person A, let's call them YOU, invests $50 a month in an RRSP for 10 years, starting today. Person B, let's call them your know-it-all neighbour, invests the same amount of money, but starts 10 years from now.

You both invest the same amount of money per month, you just start at different times. In 25 years at 6%, you would have saved $19,470, and your know-it-all neighbour? $10,872. The only difference here is time, so you can see how it really adds up.

Who's the know-it-all now?

And if you don't have a lot of extra cash to work with, that's no reason to put off saving any longer. If you invest small amounts over the coming years, it really does add up. A few dollars now could make a big difference to your future, without making much of an impact on your today.

Investment advice is provided by Royal Mutual Funds Inc. Royal Mutual Funds Inc., RBC Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada, The Royal Trust Company and Phillips, Hager & North Investment Management Ltd. are separate corporate entities which are affiliated. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec.