RSPs are investment plans that offer a consistent and disciplined means of investment that provide access to stocks and unit trusts with low cost on a monthly basis. It takes advantage of the dollar-cost averaging approach that does not require you to time the volatile market. Regular Savings Plan (RSP) is a monthly subscription plan that enables you to invest a small fixed sum of money into a particular investment product on a regular basis (usually monthly).
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A Regular Savings Plan (RSP) focuses on dollar-cost averaging, ensuring that you consistently invest the same amount of money into the market at regular intervals, regardless of the unit price. ... In the long-run, you end up paying an average price for your investments across the years.
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It encourages discipline, as you will be setting money aside on a regular basis (for example, monthly) for investment. From a practical perspective, you can also better manage your personal finances by timing your investment outlay to coincide with when you receive your income.
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You'll be financially independent sooner. ...
You won't have to worry if you're hit with any unforeseen expenses. ...
You'll have financial back-up in place if you lose your job. ...
You'll be prepared if your circumstances change. ...
You'll be more comfortable in retirement.
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