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“The key is to start investing early and invest regularly. It is easier to save if you make investing part of your monthly routine by contributing to your retirement savings at the same time as you pay your bills,” said Knight.

One of the easiest and most effective ways to invest is to set up a Continuous Savings Plan.  This plan allows investors to make automatic, regular investments into their mutual funds directly from their bank accounts, so that they can plan their contributions with the rest of their monthly bills.

There are many benefits to contributing regularly to RRSPs, including:

Dollar cost averaging – In the case of mutual funds, this means regular contribution buys more mutual fund units when the price is low, and fewer when the price is high, helping to reduce the average price paid over the long term.

Avoiding the RRSP rush and the stress associated with it – By contributing to an RRSP each month, the RRSP season line-ups are avoided, as well as the stress of finding a lump sum of money to invest.

Compounding growth – Through Continuous Savings Plans, money grows in two ways: from regular contributions and from the accumulated growth of earlier savings.

Continuous Purchase Plans in Practice:
A 35-year-old who invested $100 a month until age 65, could see his/her investment grow to more than $100,748 in 30 years, assuming a seven per cent effective annual rate of return compounded monthly in a tax-sheltered account.

“At this rate, the investor could end up with more than double the amount actually contributed, which is a great return on an investment that probably amounts to less than most monthly morning coffee bills,” added Knight.

An investment professional at BMO Bank of Montreal will help investors work out an investment plan that suits their individual financial situation, lifestyle and retirement goal.