A C C O U N T A N T S A N D B U S I N E S S A D V I S O R S
An automatic savings plan has other advantages than just the convenience of not having to manually deposit funds into your savings account each month. For instance, this type of system makes it easier to stick to a personal budget, since it is harder to overspend and dip into your savings once they are automatically removed from your bank account.
This type of system also helps investors continue contributing savings to their investment portfolio over a long period of time, something that can become emotionally difficult to keep up after suffering losses on a few investments or personal experiences.
A savings plan or account that is registered with the government and provides deferral of tax obligations. Tax-deferred savings plans may defer taxable income earned within the account either until withdrawal or until a particular date.
They are used most commonly in retirement savings accounts such as IRAs, 401(k) s and RRSPs, but are also available for education savings plans and other accounts. DMG will help set up your savings plan.