Automatic Investment Plans

Funds typically give you two ways in which to invest:

Single-sum — You can invest any amount you want at one time, as long as you meet the minimum requirements of that fund. Some funds have no minimum for opening an account or no minimum for additional share purchases, while others do.
Automatic investment — Most funds offer plans that automatically and regularly transfer set amounts from your bank account or paycheck. This is a great way to save money on a routine basis.

Dollar-cost averaging

Making regular, automatic investments is a great way to take advantage of market fluctuations. With dollar-cost averaging, you invest a fixed amount on a regular basis, regardless of current market trends. When prices are high, you'll buy fewer shares. But when prices are low, you'll buy more, which can potentially lower your average cost per share.

An Automatic Investment Plan does not assure a profit and does not protect against a loss in a declining market.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.

The Financial Advisors are investment adviser representatives of AARP Financial Inc., an investment adviser.

While AARP endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.