How to turn your money into superdollars

Investors who start early have a huge head start toward saving enough for retirement.

Karen Wallace 10 September, 2018 | 5:00PM

"I can't afford to contribute to my retirement account right now; maybe some day."

I hear this a lot, especially from people early in their careers. Maybe that's your situation. You may be saddled with student debt, saving for short-term goals like a car, or a down payment on a home. Contributing to an RRSP would be nice, but it's just not going to happen right now.

But it really is worthwhile to save whatever you can afford to, even if it doesn't seem like much. I think of money invested in your 20s and 30s as superdollars: with several decades to compound, this money has incredible growth potential. One dollar compounding at 6% per year will be worth $10.30 in 40 years. One dollar compounding at 6% will only be worth a third of that, $3.20, after 20 years.

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Karen Wallace

Karen Wallace  Karen Wallace, CFP® is Morningstar’s director of investor education.

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