Chapter 19

Investigating Other Investment Strategies

In This Chapter

arrow Taking a look at regular savings plans

arrow Adding up the benefits of dollar-cost averaging

arrow Revealing the wonder of compound growth

Investing is all about growing your money, whether it’s like a slow-developing fig tree that delivers in the end or a plot of fast-growing petunias. Just as with gardening, you can apply some simple techniques and strategies to help your investments along. And the beauty about these strategies is how simple it is to set them up — and then they take care of themselves (unlike most potplants).

Committing to a regular savings plan means investors don’t have to commit a big dollop of cash to a managed fund in one go. You can drip-feed money into your investment over time, gradually building up your pot of managed funds. In this chapter, I take a look at what you need to consider and how simple it is to set up a regular savings plan.

Dollar-cost averaging, as well as being a strategy in its own right, is a likely spin-off benefit from having a regular savings plan. Dollar-cost averaging is the antidote for those trying to time the market (refer to Chapter 7 for more on market timing). A regular ...

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