by Scott Ronalds

A PAC is a pre-authorized contribution plan. It enables you to make regular, automatic purchases of Steadyhand funds in your accounts with us on a semi-monthly or monthly basis. The money is automatically transferred from your bank account to your Steadyhand account. Simple as that. The plan can be stopped or modified at any time, at no penalty.

These plans are a great option for a number of reasons: (1) they enable you to establish a consistent investing routine, (2) they eliminate the temptation of trying to time the market (not a viable investment strategy!), and (3) they can help smooth out your returns (as you’re buying more units of a fund when it’s down in value, and less when it’s up).

Setting up a PAC in your RSP can be particularly beneficial. It creates a forced savings discipline and helps you avoid making a large, lump sum last-minute contribution (or miss the contribution deadline altogether).

Think of a PAC as fiber for your portfolio ... it helps keep your investing regular. To set up a plan in your account, click here or give us a call at 1-888-888-3147.