Schmeichel has backed Ferguson's spending spree - which will exceed £80m this summer if a deal for Wesley Sneijder can be agreed.
"With Edwin van der Sar, Paul Scholes and Gary Neville leaving, it is the right time to invest a lot of money," Schmeichel told the Manchester Evening News. "It shows our competitors we have money to spend.
"We won the championship and we are going to spend so much money because we want to retain it and we want as much success in the Champions League as we had last year."
United are hoping to bring an end to one of the transfer sagas by offering a highly incentivised contract that includes enhanced image rights in order to convince Sneijder to lower his salary demands of more than £200,000 a week.
Even without Sneijder, Schmeichel believes a 20th title is on its way to Old Trafford after the signings of Ashley Young, Phil Jones and David de Gea.
"When you spend the amount money they have on a side that won the title, it is only fair that they should be favourites," he said, adding that his former side will be able to cope without Scholes
"Everyone leaves at some point. The strength of this club is that it always puts someone else in. They might not be the same. They might be a little bit better or a little bit worse, but the club always survives.
"We've had so many players retiring or leaving for other clubs, but we go on to win trophies."