Time adds value to money. Delayed investing shortens your time, which increasingly requires the compensation of higher and higher returns to meet your retirement goals. Examine the following graph to see how time affects your investment growth.

2. Your investment growth must exceed inflation.

If you earn 8% on a $10,000 investment per year, over 20 years with inflation at an average 4%—as measured by the Consumer Price Index (CPI)— your actual investment will grow to $457,620, but your actual buying power in the future will only be $208,852 (while your money is growing, inflation is increasing the cost of goods). The graph below indicates how inflation might affect your investment's future buying power.

3. Algebraic factors apply to investing.

You can indicate your multiple on capital invested by applying mathematical rules, factoring in both time and rate of return.

• Double Your Money: Rule of 72. To find out how many years it will take to double your money, divide 72 by your average annual rate of return.
• Triple Your Money: Rule of  113. Divide 113 by your average annual rate of return to see how many years it will take to triple your invested money.

4. Taxation can reduce your investment returns.

Every dollar of tax retained through tax-planning, normally paid to Canada Revenue Agency (CRA), is a dollar earned.

• Deduct what you can against your income. Business-owners have the advantage of deducting many operating expenses from their revenues.
• Contribute to your RRSP. For both business owners and employees, RRSP contributions, allow deductions against earned income.
• Defer as much taxation as possible. The beauty of the RRSP, and TFSA is that they allow some tax planning benefits depending on your income, and capital available to invest.

5.  Become an active investor.