Systematic Purchase & Withdrawal Plans

Regular Investment Plans (RIP)

For as little as $25 per month, a Regular Investment Plan (RIP) allows you to purchase a specific dollar amount of a mutual fund's units on a regular basis and to avoid the high minimum purchase amounts that often apply to single mutual fund purchases. Also known as Pre-Authorized Contribution (PAC) or Deposit (PAD) plans, RIPs offer the flexibility to invest a selected amount, automatically withdrawn from your bank account, at a frequency determined by you.

RIPs can also provide the benefit of dollar-cost averaging. As you are purchasing mutual fund units over time, you can take advantage of market fluctuations to purchase at varying costs, which can often reduce the average cost per unit. RIPs are also an effective way to invest inside or outside a registered plan, such as an RRSP or RESP, to take advantage of the power of compounding.

A Systematic Withdrawal Plan (SWP) offers the ability to automatically redeem a pre-determined amount of a mutual fund in your portfolio and to have the proceeds sent to you by cheque or to your bank account on a monthly basis. This can be of value to those who need to meet RRIF withdrawal requirements, or simply to supplement their income.

The information contained herein is considered accurate at the time of posting. CIBC, CIBC World Markets Inc. and CIBC Investor Services Inc. reserve the right to change any of it without prior notice. It is for general information purposes only. Clients are advised to seek advice regarding their particular circumstances from their personal tax advisors.

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The information on this Web site is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual, and you should not rely on it as such.