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Retire Partially off of The Banks Money!

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It's true! If you start investing early enough you can earn a ton of compound interest. Compound interest is awesome as you earn interest from your initial investment, your new contributions and even off of the interest! Depending on where you live there are different investment types and strategies, I recommend reading up online on your options. If you are in Canada you will likely want to look into RRSP's (Registered Retirement Savings Plan) and TFSA's (Tax Free Savings Account). One of the greatest benefits from an RRSP is you get an immediate tax break on the money you invest, where as for TFSA's you don't get taxed on when you take the money out of the account, talk to your financial adviser to find out which one will benefit you more.

To see how much you should consider saving and also how much interest you could make over the years, visit a site like this Compound Interest Calculator.

We took some random numbers and plugged them in. An initial investment of $50,000 with $300 bi-weekly and an interest rate of 5% compounded monthly over 35 years will give you $1,025,973.56 at the end of the 35 years and out of that lump sum $702,973.56 of it will be from interest! If you did this 68.5% of your retirement would come from interest! Hopefully now you can see why this is a popular option for us!

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Obviously everyone's situation is different and many will not be able to invest this much money up front or this much every 2 weeks, but regardless, you should attempt to invest as much as you can. As stated above, if you are in Canada and you do this with RRSP's, you will also get a tax deduction which will save you money short term as well.

We encourage everyone to start saving, no matter your current age or financial situation, if you even start with something small like $5 a month, it's better than nothing!

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