It’s never too late to start saving!

Author: Sound Choices

February 12, 2018

The content in the below article is meant for Canadian investors only.

Better to start now than not at all.

Most industry experts will tell you the earlier you start saving, the better. While that adage still holds true, it’s also good to remember one of our favourites – Better late than never!

It doesn’t matter how old you are, the important thing is to start saving now. Saving can help you develop smart habits and give your money more time to grow.

By getting started now, you may accumulate more than you think and be able to reach your goals, whether it is to fund a family vacation, your child’s education or a comfortable retirement.

Here are some strategies to consider when getting started:

1. Set up a pre-authorized purchase plan. A pre-authorized contribution (PAC) plan is an automatic deduction from your account each week, month or other frequency – you can start to accumulate assets in smaller amounts and let those assets grow until you need them. If you started saving later in life and have less time for these assets to accumulate, you may need to save a bit more on a regular basis to help meet your financial goals.

Year	$100 PAC (5% return)	$200 PAC (5% return)	$500 PAC (5% return)	$1,000 PAC (5% return)
0	$0	$0	$0	$0
2	$2,519	$5,037	$12,593	$25,186
4	$5,301	$10,603	$26,507	$53,015
6	$8,376	$16,753	$41,882	$83,764
8	$11,774	$23,548	$58,870	$117,741
10	$15,528	$31,056	$77,641	$155,282
12	$19,676	$39,353	$98,382	$196,764
14	$24,260	$48,520	$121,299	$242,598
16	$29,324	$58,649	$146,621	$293,243
18	$34,920	$69,840	$174,601	$349,202
20	$41,103	$82,207	$205,517	$411,034

The table represents the hypothetical growth of the investment, based on the hypothetical rate of return. For illustrative purpose only. Source: Globe HySales, based on monthly PAC contributions every year over the period.

2. Choose the right investment types. This one is a bit trickier and should be discussed with your financial advisor before you make any decisions.

3. Choose the right account types. Depending on when you’re getting started, and based on tax and other considerations, your advisor may recommend you set up a registered retirement savings plan (RRSP), tax-free savings account (TFSA) or a non-registered savings/investment account. The type(s) of account(s) you choose will impact when and how you can access your savings and will have certain other restrictions and tax implications that you should consider. Your advisor can provide the guidance you need.

For more information on getting started on saving – no matter what your stage of life, contact your financial advisor. If you want to know how to find the right advisor for you, read How to choose a financial advisor.

The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.