Automatic and Systematic Investing
Automatic, Systematic Investing
One of the greatest advantages that teachers have is the option to
systematically invest monthly.
Why is systematic
investing so valuable?
- The power of Compounding
Interest is nothing short of amazing.
For the price of a cup of coffee and a doughnut ($50 a month) a
25-year-old will accumulate over $300,000 by age 65. If $200 a month is
invested, it would grow to almost $3 Million Dollars.
- Payroll deductions allow investors to pay themselves first. It puts the investor at the head of the list of the people who get paid every month.
- The convenience of payroll deductions helps maintain the habit and the discipline to continue every month.
- Dollar-cost averaging eliminates the need to know when is the right time to buy. Investing the same amount of dollars every month results in more shares being bought when the price is lower and fewer shares when the price is higher. That's exactly the goal of every successful financial expert.
What are the disadvantages?
None
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