RRSP's and Pre-Authorized Contributions

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As the March 1st RRSP deadline looms, many people are left wondering where they will find the money to make their RRSP contribution. With holiday bills to pay along with regular expenses, most people don’t have the thousands of dollars available to make a lump sum contribution. Many times we are left borrowing money through a bank loan or using a line of credit. Even if you have managed to save your entire RRSP contribution this year you might be interested to know that there are other options available for future contributions.

Monthly Pre-Authorized Contributions make sense in that they reduce the stress of the large yearly RRSP contribution as well as allow you to take advantage of another important investing technique. A dollar-cost averaging strategy is the practice of regularly investing a fixed sum regardless of which way the stock market is moving. When prices are high, your money buys fewer shares, and when prices are low, your money buys more. But over time, you will probably wind up with more shares at lower prices than if you bought them all at once. It reduces your average share cost and spreads your investment risk over time.

Investing on a monthly basis also removes the risk of having bad timing when it comes to investing your lump sum RRSP contribution as well it allows your money to grow throughout the year.

Setting up a monthly investment is an easy and carefree way of making your yearly contributions to your savings. At Insightful Wealth Group - Manulife Securities Incorporated, we can take care of all of the details from setting up the monthly withdrawals from the account of your choice to making sure you chose the right investment for your savings.

As an added bonus, when you set up a monthly investment with Insightful Wealth Group, mutual fund purchases are made on a no load basis meaning there is no upfront sales charge nor is there a deferred sales charge that locks your investment into any particular mutual fund. Connect with us and allow us to help you make your RRSP contribution easy and stress free.


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.