Regular investment plans

You can set up an RIP to make automatic debits from your CIBC bank account to your Investor’s Edge account on a timetable of your choosing. This could be weekly, monthly and so on. It’s possible to start with as little as $25 and, if you choose, you can match the frequency to your payroll deposits. Invest the money automatically in a mutual fund, or use the cash to buy stocks, exchange traded funds (ETFs) or other types of investments.

The strategy works in both non-registered accounts and registered accounts, like Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). If you set up an RIP that makes deposits to a registered account, just be sure that you don’t unintentionally exceed your contribution limits during the year.

Regular Investment Plans make it easier to dollar-cost average. Are you familiar with this strategy? If not, here’s how it works.

1. You buy the same investment regularly over a period of time and use the same amount of money each time. This is “dollar-cost averaging”.
2. Because you invest the same amount each time, you buy fewer units of the investment when the price is high and more units when the price falls.
3. This can potentially lower the average cost of your investment over time.

1. Sign on to your Investor’s Edge account.
2. Visit the “Trading” page and select Regular Investment Plans.
3. Follow the instructions on the screen.