Assume that you want to retire early at age 60. You plan to save using one of the following two strategies: (1) save $2,000 a year in an RRSP beginning when you are 20 and ending when you are 60 (40 years) or (2) wait until you are 40 to start saving and then save $8,000 per year for the next 20 years. Assume that you will earn the historic stock market average of 8% per year.
How much savings will you have accumulated at age 55 under the two options?

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The Answer of Assume that you want to retire early at age 60. You plan to save using one of the following two strategies: (1) save $2,000 a year in an RRSP beginning when you are 20 and ending when you are 60 (40 years) or (2) wait until you are 40 to start saving and then save $8,000 per year for the next 20 years. Assume that you will earn the historic stock market average of 8% per year.
How much savings will you have accumulated at age 55 under the two options?

Assume That You Want to Retire Early at Age 60