If you wish to supplement your retirement by saving $200 000 in 25 years, how much more would you have to save monthly if you saved the money outside rather than in an RRSP?

Consider that investment returns should provide a yield of 8.5 percent compounded monthly and your tax rate is 30 percent, so the after tax return would be 5.95 percent?

Answer rating: 100% (QA)

Assuming that the 200000 savings target is in todays dollars we can use the future value formula to calculate the monthly savings required to achieve ... View the full answer