talking about my generation (and their RRSPs)

The Toronto Star yesterday ran a special section on investing. It had an interesting article by Talbot Boggs about the relationship between banks and the members of the “echo boom” generation (those born between 1977 and 1994) and how it’s impacting our savings habits.

Apparently a recent study found that there’s little being done by the investment industry (and that includes the big banks) to attract young people to products and services like RRSPs that will help them reach their long-term financial goals. (And long-term doesn’t mean buying that new car or house either; they’re talking about flying around the world at 65 and paying the condo fees in that retirement community.)

The article goes on to say that our generation may have an interest in saving, but we don’t generally take an active hand in the management.

Result: we aren’t offered the tools we need to reach our goals, because we’re not around to set any. And that’s a problem, because the earlier you start saving, the faster your money accumulates. Compound interest is a magical thing.

So what’s the solution?

Well, make an appointment and visit your local bank branch. Visit several different ones and see if there’s something out there you like better. Evidently they aren’t going to come to us. Do some research, get informed and be prepared to set priorities.

The Star article quotes StatsCan as saying our parents’ generation has only contributed 7 per cent of their RRSP allowable max. Tax time is coming up and the contribution deadline for the 2007 filing is February 29th, 2008. Let’s give them a run for their money.