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When it comes to investing, time is money

Here's an illustration of that:

Two people each invest $60,000 in their RRSP RRSP: (Registered Retirement Savings Plan) Savings method that allows you to put savings in tax-sheltered investments during your active life to supplement your income when you retire. Your RRSP savings will not be taxed until you withdraw them. .
Julie invests $1,500 a year from the age of 25 and will continue to do so for 40 years.
Julian waits until his early forties and invests $2,400 a year for 25 years.

As the following table demonstrates, by the time she turns 65, Julie will have earned considerably more than Julian for her retirement.

Age	Annual contribution	Contribution period	Total investment	Value at 65 years
25	$1,500	From 25 to 65	$60,000	$299,453
40	$2,400	From 40 to 65	$60,000	$151,798

Our example assumes that money is invested in a balanced investment fund with an annual return of 7% at the end of the period.

The basic principle illustrated above is: make time work for you. The savings accumulate in a tax-free account, which maximizes the return Return: Amount of interest or dividends received from an investment in a given period of time. . The longer the money is sheltered Tax-sheltered: You will not have to pay income taxes on money you invest in a tax-sheltered investment (e.g., RRSP) until you withdraw the funds.   from taxation, the more the retirement savings Retirement savings: Amount of money saved to cover the cost of your living expenses when you retire.   will grow. That's why the sooner you start contributing Contribute: To make a payment into a retirement plan. , the better!

Obviously, it's not always easy for recent graduates just entering the job market, or families with young children, to invest for their retirement, which must seem very far away to them. But it's important to take that first step. Remember: time is your greatest ally!