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This chart shows the significance of maintaining a strategy of investing regularly . However , it is also a compelling illustration of the importance of investing early .

The table depicts scenarios for two different investors – Early Elaine and Late Larry – each of whom earns an assumed annual return of 8 %.

From age 25 to 36 , Elaine makes RRSP contributions of $ 4,000 each January . Over this twelve-year period , she will have invested a total of $ 48,000 .

Larry only begins investing at age 37 , contributing $ 4,000 to an RRSP each January . For the next 35 years , he will have contributed a total of $ 140,000 .

However , at age 71 , Elaine ’ s account would be worth 63 % more than Larry ’ s .

Take advantage of time and the power of compound growth . All it takes is planning .

So don ’ t approach RRSP investing by asking if you can afford to invest . Ask yourself : “ Can I afford not to ?”

Commissions , trailing commissions , management fees and expenses all may be associated with mutual fund investments . Please read the prospectus before investing . Mutual funds are not guaranteed , their values change frequently and past performance may not be repeated . The information contained herein is based on certain assumptions for illustration purposes only and does not purport to forecast or guarantee future fund values or returns . Depending on the contribution amounts and rates of return used in this type of example , the difference in the market value at age 71 may be more or less pronounced . However , the pattern of a higher market value for the early contributor always holds .

Early Elaine Late Larry

For Illustrative Purposes Only

Market value at age 71

# of years contributed

$ 48,000 Invested $ 1,212,120 12 yrs $ 140,000 Invested $ 744,409

35 yrs