TORONTO, ONTARIO — (Marketwire) — 11/07/12 — To mark Financial Literacy Month, BMO Financial Group is releasing a series of financial tips throughout November. As part of -Making Money Make Sense- and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day-to-day finances more effectively.
BMO-s Tip of the Day: Consider investing in a Registered Retirement Savings Plan (RRSP) and taking advantage of tax incentives when saving for retirement.
What is an RRSP?
An RRSP is a registered plan that allows you to save for retirement in a tax-efficient manner.
“Investing in an RRSP should be a staple in any retirement savings plan, as it-s the most tax-effective way to generate the funds you need to become financially secure in your retirement,” said Marlena Pospiech, Senior Retirement Strategist, BMO Financial Group. “Whether you-ve been contributing to an RRSP for years or are just getting started, make sure you invest on a consistent basis, regardless of the amount.”
Here is how an RRSP can work to your advantage:
The example below illustrates the difference in savings between a fixed annual RRSP and non-RRSP investment, assuming a 5 to 6 per cent average annual rate of return on a $10,000 annual investment over a 30 year period. With tax-deferred compound growth in an RRSP and investing regularly this can amount to a substantial difference in accumulated savings over time.
BMO Financial Group-s RRSP Savings Calculator can help take the guesswork out of contributing to your RRSP by taking you through a few simple steps that will put you on the path to retirement success. Access it at .
“CFEE commends BMO-s ongoing efforts to support Financial Literacy in Canada and promote ways in which Canadians can increase their competence and confidence when managing their personal finances on a day-to-day basis,” said Gary Rabbior, President, Canadian Foundation for Economic Education (CFEE).
BMO Financial Literacy Month Tips
November 1:
November 2:
November 3:
November 4:
November 5:
November 6:
For more on financial literacy, Canadians can visit the Government of Canada-s website, as well as BMO-s online resource.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
Contacts:
Media Contacts:
Rachael McKay, Toronto
(416) 867-3996
Valerie Doucet, Montreal
(514) 877-8224
Laurie Grant, Vancouver
(604) 665-7596
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Twitter: @BMOmedia