Automatic Investment Plans
Many people who open DRIP and DSP accounts choose to invest automatically. We will talk more about the advantage of automatic investing in Chapter 8. If you invest automatically, you can set up an automatic electronic transfer between your bank account and your DRIP or DSP account. Each month, a sum is automatically transferred from the bank to the DRIP or DSP and then invested in additional shares of stock.
Even though it’s automatic, you should get a statement when the transaction is complete. Check these statements carefully to be sure the DRIP or DSP administrator is accurately handling your automatic deposits. Errors can happen and it’s best to fix them as early as possible.
As you set up the automatic withdrawal, ...