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Q: What are the pros of starting an RRSP?

Diana says...
An RRSP (registered retirement savings plan) offers investors two advantages: 1) Money put into an RRSP reduces your income taxes. 2) It’s a tax-free way to save money for your future. The earlier you start, the better. Based on an interest calculator from a local bank, just $50 set aside each month grows to $48,739 over 30 years (calculated at a 6 percent interest rate). You can set up an RRSP at a financial institution and make automatic monthly or lump sum payments. There are all sorts of investment options with RRSPs. You can make cash deposits or invest in stocks, bonds or mutual funds. Talk with a financial advisor or bank rep to see what they offer.

Diana Cawfield is an award-winning financial writer with more than 10 years experience. Send her your questions here.