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Invest Often
Why wait a year for your money to start earning income?
It's usually easier to make smaller, regular contributions than larger ones once a year or every few years, and it can be financially beneficial.
Benefits of Saving Regularly
Compound growth. There are two ways your
money can grow: from your own regular contributions and from the accumulated
growth of your earlier savings. Best of all, the growth is tax-free if your
savings are inside an RSP or RESP.
Convenient
and manageable. A Continuous
Savings Plan (CSP) provides you with the convenience of making small, regular
contributions to help increase your savings or ease the cost of investing one
big lump sum each year.
Dollar-cost averaging. A consistent monthly
contribution helps to reduce the average price you pay per unit over the long
term for your investments.
Pay less tax
during the year. By making regular RSP contributions and notifying
Canada Revenue Agency, you can pay less tax throughout the year instead of
waiting for a tax refund. Pick up a tax deduction waiver to notify your employer
to deduct less income tax from each pay cheque. This form is available on the
Canada Revenue Agency
website.
Things you can
do:
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