Make regular contributions work for you
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Through your company-sponsored program, you can maximize the earning potential of your money with the ease of regular monthly contributions.
Many people jeopardize their future security with an inconsistent saving pattern and no established goals. They realize too late that their nest egg won't materialize. In addition, coming up with a lump sum to invest at retirement can be difficult. By setting aside a fixed amount of money every month, your nest egg can grow significantly over time!
Your company-sponsored program allows you to reap the benefits of maximizing your earning potential by saving a little at a time. You can make regular payroll contributions to buy into a fund at different times, regardless of market highs or lows. This provides you with the opportunity to buy more units when the market is low.
A declining market provides opportunities for buying, especially if you're contributing regularly by payroll deduction. Not only is investing on a regular basis easier, but it actually improves your returns. You don't have to worry about falling markets when you make automatic deposits.
Here's how making regular contributions can benefit you. Putting aside equal dollar amounts on a regular basis ensures that you get more units when prices are low (due to market fluctuations) and fewer units when prices are high.
The following graph shows you how making regular monthly contributions ($100 every month) rather than investing a one-time lump sum ($300) can be more beneficial.
As you can see, the value of your money increases steadily through regular monthly contributions during a three-month period, rather than investing in a lump sum.
If you have a general question or suggestion about this newsletter, please send an e-mail to email@example.com or write to my money At a Glance Newsletter, Group Retirement Services Marketing, Sun Life Financial, 225 King Street West, Toronto, ON M5V 3C5. This bulletin has been created exclusively for you. It addresses issues to help you with your financial planning and investments.
Group Retirement Services are provided by Sun Life Assurance Company of Canada,
a member of the Sun Life Financial group of companies.