What does it take to have a $1-million RRSP?

Saving a considerable amount for your retirement might not be as hard as you think.

Karen Wallace 20 August, 2018 | 5:00PM

Let's say your goal is to save a million dollars by the time you retire. For many people, that sounds like a Herculean task.

What are you picturing right now? If you are imagining squirreling away money for decades and holding it in cash (money market funds have returned just over 1% annually over the past 15 years), you would need to sock away a lot of money to get to a million. And along the way, your budget could be really tight.

Change your mental picture. Instead, invest in your RRSP (or another retirement savings account) with the goal of having a million dollars in 30 to 40 years. Although it may sound like it's just semantics, it's actually much easier -- especially if you start saving early -- to let your investments do as much heavy lifting as possible.

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Karen Wallace

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

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