A Savings Plan Where You Can Actually Make Money

Also, many would consider investing money in stocks and bonds if they felt it could be done without much risk.


We'll use Jack as our example.
Plus, he didn't want too much money accumulating in the bank where it was so readily available because he was always tempted to take a withdrawal and spend it.
He also disliked and did not trust the investment industry or those who worked in it.


We started Jack's first financial adventure with $600 per month flowing (automatically) from his checking account to a large mutual fund family.
Plus, this gave us flexibility because money could easily be moved from there to any of the other funds offered by the fund family.
Of the $600 that went in each month, $300 would stay there.


The three other funds were: a short-term bond fund, an intermediate-term bond fund and a conservative stock fund.
The stock fund offered both dividends (that were also reinvested) and growth.
He was finally an investor, accepting only a moderate to low level of risk overall.


This is called DOLLAR COST AVERAGING, and it works to lower the average cost per share.


There you have it.
Jack was still a client of mine 20 years later and eventually allowed me to be a bit more aggressive in my recommendations.


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