Friday, March 9, 2018 / by Ruth Ballantyne
(NC)-The key component of achieving your investment goals is the habit of saving regularly. It is very easy to forget about savings as we focus on paying our bills, or to let saving regularly fade as our expenses creep up. One way to overcome this tendency is to pay yourself first and do this automatically through a pre-authorized contribution plan.
"It's now easier than ever for online investors to save regularly through pre-authorized contributions," says Michael MacDonald, vice-president of strategy at RBC Direct Investing. "Automatic contributions throughout the year allow Canadians to manage their investments without spending a lot of time. After their one-time automatic contribution is set-up, the task is complete."
What can a Pre-Authorized Contribution (PAC) do for you?
• Helps you save regularly and reach your investment goals sooner by paying yourself first with cash contributions in regular, easy-to-manage installments;
• Saves you the stress of coming up with one large sum of cash when you are close to a registered account contribution deadline;
• Alleviates the time and effort involved in personally transferring funds on a weekly, biweekly, monthly or yearly basis;
• Establishes savings without making a huge commitment. You can often setup a PAC for as little as $25 a week.
Also, some online brokerages offer fee structures that allow for the waiving of maintenance or administration fees when you set up a PAC or when you meet a minimum asset threshold.
More information is available online at www.rbcdirectinvesting.com.
RBC is a member of the Canadian Investor Protection Fund
Courtesy of Newscanada