News Releases

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2012) - To mark Financial Literacy Month, BMO Financial Group is releasing a series of financial tips throughout November. As part of BMO's commitment to 'Making Money Make Sense', 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: Secure your retirement by opening a Registered Retirement Savings Plan (RRSP) as early as possible and contribute to it on a regular basis.

Opening an RRSP early in life, combined with making regular contributions, is one of the most effective ways to ensure you will have enough funds to see you through your retirement years.

• Start off investing small amounts and gradually increase them as the years progress; this will help boost the value of your RRSP. Additionally, increasing your contributions as your salary rises through the years is a great strategy that can help increase your RRSP savings.
• Investing consistently over a longer period of time can benefit your portfolio, even in times of market volatility. As you are purchasing more shares or units when prices are low and fewer when prices are high, this can result in a greater average return than if you tried to time the market. Pre-authorized payment plans, through automatic payments from your paycheque or bank account, are an effective way to ensure regular contributions are made to your RRSP.
• Sit down with a financial professional who can help you develop a strategy for making regular RRSP contributions that work for you.

Here is how an early start, combined with regular contributions, can work to your advantage:

	Start investing at age 30	Start investing at age 40
Retirement Age	65	65
Monthly Contributions	$100	$100
Annual Rate of Return	6%	6%
Total Savings	$142,471	$69,299
Difference (Starting at age 30)	+$73,172

"Saving for retirement is all about starting as early on in life as possible and making contributions on a regular basis," said Marlena Pospiech, Senior Retirement Strategist, BMO Financial Group. "Starting early, even with small, regular amounts, can greatly contribute to your savings down the road."

For more information on saving for retirement, please visit: www.bmo.com/retirement.

"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: Maximizing TFSA investments annually over 20 years can save nearly $30,000 in taxes.

November 2: Utilize rewards to squeeze the most value out of every dollar you spend this holiday season.

November 3: Choose an investment advisor who is right for you and will help you meet your financial goals.

November 4: Use your RRSP to help make the down payment on your first home.

November 5: Space out payments to avoid cash-flow problems.

November 6: Take advantage of the benefits of preferred shares.

November 7: Consider investing in a Registered Retirement Savings Plan (RRSP) and taking advantage of tax incentives when saving for retirement.

November 8: Take advantage of Canada's numerous online personal finance resources.

November 9: Before you head off on your winter vacation, be sure you and your family are properly covered in the event of a medical emergency.

November 10: Understand what you can hold in your RRSP.

November 11: Stick to the one-third rule when planning the purchase of a home.