Treat saving like a re-occurring payment to reach investment goals
You know it’s important to set money aside to reach your investment goals. However, with so many spending opportunities vying for your attention, it can be tough to fit savings into your financial security plan.
Paying yourself first means saving a set amount first and only spending what's left over - rather than the other way around.Opens a new website in a new window
“Paying yourself first” means saving a set amount first and only spending what’s left over – rather than the other way around. It means making your financial goals a priority by treating saving like any other bill or re-occurring payment.
That’s where a pre-authorized contribution (PAC) plan can help. It allows you to transfer funds automatically from your bank account to your plan.
Instead of saving to invest in one lump sum, PACs spread your saving over regular intervals, helping you balance the effects of up and down market cycles.
Making small, regular contributions can go a long way to helping you achieve your financial goals. For example, if you invest $100 a week for your retirement, you’ll have accumulated $197,000 after 20 years – assuming a fixed interest rate of six per cent.Footnote 1
Pre-authorized contribution plans make it easier to save for your future. Your financial security advisor can work with you to determine which PAC options and schedules work best for you.
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.