338 King Street, Midland, ON
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1-800-485-1788 705-528-0863
Are you waiting for that "ideal" time to invest in the market? A regular investment plan lets you invest a bit at a time. Executed with care, it may even help you buy investments at bargain prices and increase profits down the road.
You don't need any money to start a regular investment plan so it's good for new investors. But it's also suitable for those sitting on the sidelines who are hesitant to get back in the market or who are interested in trying riskier investments.
One benefit of this strategy is that it eliminates the risk of investing a big sum when market prices are at a short-term high. (Of course, it also eliminates the chance of investing a big sum at a market low.)
There's another potential benefit of regular investing when markets are volatile - which seems to be the new reality. "Dollar cost averaging" enables you to pick up more units when prices dip and fewer units when prices surge. In effect, it helps you to "average down" your costs - that is, to "buy low" and hopefully "sell high" in the future, given that markets have historically risen over the long term.
Three requirements for success
There are three requirements to execute this strategy properly. When setting up a pre-authorized contribution (PAC) plan with us, you need to invest a fixed dollar amount at a fixed interval (weekly, monthly) into a fixed (the same) equity-based investment.
Example: Say you invest $500 on the 1st of each month in a balanced fund. Units are currently $10, so your first payment buys you 50 units. Next month, prices drop to $8, so your $500 buys you more units - 62.5. If the unit price returns to $10 by the time you buy in the third month, you will have 162 units (50+ 62.5 + 50) x $10, or $1,620 on your investment of $1,500 - even though the unit price is the same as when you first invested!
Capitalizing on dollar cost averaging with a PAC is a painless way to invest in the future - you may even forget you're doing it. Our team can help you choose an amount you can live with and increase over time as your income climbs or as retirement approaches. Let us help you start reaping the benefits.
Tim Dunlop
Through many years of self-employment and involvement in the corporate world, Tim has gained experience and insight into how challenging it can be for self-employed individuals to manage their business affairs.
Tim develops individualized financial plans to meet the personal financial objectives for each of his clients. The emphasis of each plan is to find ways to put extra dollars back into the businesses and pockets of every client.
With ten years of financial consultation experience, Tim provides in-depth financial counseling designed to enable his clients to maximize financial security for themselves and their families.
As a client, you will receive one-on-one personal service either at our office or at a location that best suits you. We believe in a "client first" approach to financial planning.