No. of Recommendations: 1
First off, I want to warn everyone I was an English Major in University and am not allowed near calculators as a rule of thumb. J/K!

I have been running some numbers for my RRSP, which I believe equates roughly to a 401(k) although I won't swear to it. The problem is, I've totally confused myself (not a stretch at the best of times ;)! I have just read the Wealthy Barber, and am trying to commit myself to socking away 10% of my pay. I figure I have 30 years to retirement and 10% of my pay is roughly $645 a month. Now if my numbers are right, putting the $645 away a month with an interest rate of 5% compounded annually means I will have a million dollars in just over ten years. This takes in to account the fact that the money invested is tax-free and so is any interest generated from the money. What am I missing?

I realize that this should probably go on the retirement board but I feel more comfortable talking to you guys when I am being a bonehead.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.