by Scott Ronalds

March 1st was the RRSP deadline. It was a busy day at Steadyhand, and at banks and financial institutions across the country, as lots of people scrambled to make a last-minute contribution.

If you counted yourself among them, don’t feel too bad. The fact that you added to your retirement pot puts you ahead of many Canadians who aren’t using tax-advantaged plans to their benefit. Yet, I know that rounding up the money and placing the transaction was probably a source of stress.

But there’s a better way. You can avoid the deadline drama altogether by setting up a pre-authorized contribution plan (PAC), whereby a fixed amount of money is automatically withdrawn from your bank account on a monthly or semi-monthly basis and added to your Steadyhand RRSP in the fund(s) of your choice.

We’ve been plugging these plans lately for a few reasons: (1) they’re a great way to simplify your investing routine, (2) they help you dodge the burden that can come with a large lump-sum contribution, and (3) we’re increasingly being asked by prospects and clients if we offer any type of ‘automatic deposit program’. This last point tells me we’re not doing a good enough job of promoting them ... which is why you’re reading this.

If you’re interested in setting up a PAC, it’s as simple as completing a one-page form. And if you’ve got any brilliant ideas on how we can market them better, we’re all ears (although David was quick to put to bed my idea of parading him down Bay St. as “Pac-Man”).