BMO Financial Group
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BMO Financial Group

November 16, 2011 08:30 ET

Canada's New $100 Bill-BMO Offers Advice On How To Put It To Good Use

An Investment of $100 Can Build Into Significant Savings Through Regular Contributions to an RRSP, RESP, and/or TFSA

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2011) - With the news that Canada's new $100 bill has entered circulation, BMO Financial Group reminds Canadians of what $100 can provide in investment returns if they start saving and investing early.

"Whether it's made from paper or polymer, $100 holds great value when you think of how the amount can grow over time," said Serge Pépin, Head of Investments, BMO Investments Inc. "With the right investment strategy, and the motivation to start saving early – no matter how small the amount - $100 can build into significant savings."

Registered Retirement Savings Plan (RRSP): A tax-deferred savings vehicle that can help fund your retirement: If you invest $100 every month for 20 years (with an average rate of return of 5 per cent), you can earn approximately $41,000 on a total investment of $24,000.

Registered Education Savings Plan (RESP): A tax-deferred savings vehicle that helps fund a child's post-secondary education: If you begin investing $100 every month from the time your child is born until the age of 18, he/she can have up to $50,000 saved for post-secondary education.

Tax Free Savings Account (TFSA): A savings account that offers a variety of ways to tax shelter investments: If you contribute $100 a month over a period of 20 years to your TFSA (with an average rate of return of 5 per cent), you would earn approximately $42,000 on a total investment of $24,000 – which is more than $6,000 than the earnings that would have resulted from a taxable account.

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