Automatic investing is one of those principles that work so well they're considered core to your financial success. It's a smart and easy way to make regular investments.
Eliminate the Guesswork
Markets will have their ups and downs. But automatic investing may help keep your investments on a steady course. It's a proactive approach that can remove emotions and knee-jerk reactions to volatility.
Let Market Swings Work for You
Investing a set amount every week or month helps you avoid buying shares at the wrong time. Instead, you buy more shares when prices are low and fewer shares when prices are high.
This dollar cost averaging strategy does not assure a profit or protect against loss in declining markets. To fully take advantage of it, be prepared to continue investing at regular intervals, even during economic downturns.
Put Time on Your Side
Investing a little each week or month now may return a lot later and increase the chance of you achieving your goal. See how investing $50, $100 or $200 a month can pay off.
These are hypothetical calculations assuming a $2,500 initial investment and monthly (or weekly) investments over 40 years with a 6% return rate. Assumes reinvestment of all gains, dividends and interest, and does not include fees, expenses or taxes. If all taxes, fees and expenses were reflected, the reported value would be lower. Source: American Century Investments Future Value Calculator. Financial Calculators from Dinkytown.net. ©2019 KJE Computer Solutions, LLC.