Just like a bill due on a regular basis–think Hydro, Bell or Videotron–periodic savings are a very good habit to have. Why not pay yourself like you do these companies? There’s a solution: The Periodic Savings Plan. Just like a long journey starts with a single step, achieve your goals (e.g., home, retirement, car, trips, renovations) one payment at a time.
The Periodic Savings Plan makes it easier to save: you set aside money on a regular and automatic basis. These are payments withdrawn directly from your account, rather than a big amount that you set aside every now and then. You set the amount and frequency of your payments, which you can change as you see fit. All without you having to think about it.
In addition to its ease and flexibility, efficiency is also a significant benefit. For example, periodically investing in mutual funds reduces the average acquisition cost of your shares relative to an annual contribution. You therefore buy more shares when the prices are down and fewer when the prices are up.
Periodic savings, also known as systematic savings, is a proven way to prepare for retirement. It enables you to build tax-sheltered income on a regular basis. The chart below clearly shows that it is preferable to contribute to your RRSP on a monthly basis rather than once at the end of the year. In this hypothetical case, an investor who started their contributions at 25 would have $5,952 more when they retired at 60. Wind in your sails: Periodic investments in mutual funds accelerate results and make your money work harder for you, bringing you closer to your destination every time.
A hypothetical example based on mutual fund investment.1
Periodic savings are for everyone, regardless of the size and scope of your goals, whether they are big or small, short- or long-term. The Periodic Savings Plan includes a Budget Plan, a Security Plan and an Investment Plan that meet various needs. To get started with one of these savings solutions, simply choose a plan and set the amount and frequency of your payments, depending on how much flexibility you have in your budget. This will enable you to save year-round at your own pace. Take the first step today, come and meet your advisor at one of our branches.
A financial health assessment is the first step to better manage your personal finances. It helps paint a clear picture of your financial situation, define and prioritize your objectives, and suggest what you should do. Take your first step now and meet with your advisor.
New investment accounts are offered by LBC Financial Services Inc. (LBCFS). Mutual funds are distributed by LBCFS. The Financial Planning service is offered by LBCFS. LBCFS is a wholly-owned subsidiary of Laurentian Bank and a legal entity distinct from Laurentian Bank and Mackenzie Investments. Mutual funds offered by LBCFS are part of the Laurentian Bank Group of Funds managed by Mackenzie Investments. A Laurentian Bank advisor is also a licensed LBCFS Mutual Fund Representative.
Commissions, trailing commissions, management fees and other expenses all may be associated with mutual fund investments. Nothing guarantees that the fund will maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual fund values change frequently, and past performance may not be repeated. Please read the simplified prospectus or Fund Facts before investing in mutual funds.
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