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, monthly, or quarterly basis. The money is automatically transferred from your chequing 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 commit you to a routine of investing regularly, (2) they eliminate the temptation of trying to time the market (which is not a viable investment strategy), and (3) they can help smooth out your returns (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 helps create a forced savings discipline and helps you avoid making a large, lump sum last-minute contribution (or miss the contribution deadline altogether).
To set up a plan in your account, click here.