Ed Legzdins, President and CEO, BMO Mutual Funds suggests that, for many investors, a continuous purchase plan "just makes good sense" and he urges investors to talk with an investment professional to get a better understanding of how these plans work. "An investment professional can explain the benefits of investing regularly, and demonstrate how this can help you achieve your goals," he said.
The first step in calculating your billable hours is to define a realistic working year. If you were employed elsewhere, you would expect or want at least two weeks vacation time, one week sick time, one week personal time and paid holidays. So, where does that leave us - 52 weeks minus four weeks leaves 48 weeks minus about 10 paid holidays, or a total of approximately 46 weeks per year.
Contributing regularly makes investing easier and puts your money to work sooner. Through a continuous purchase plan, like those available from BMO Mutual Funds, you will be contributing more regularly such as monthly or bi-weekly. This gives you the comfort and convenience of making smaller, regular contributions to your RSP portfolio and it means your retirement account can grow considerably, due to the remarkable impact of compounding.