Here at Leonard Financial Solutions, many clients enjoy having an AIP because it lets them mindlessly put away money each month. Because everything is automated, there’s not much you have to do, either. If you’re already automating your bill payments, you’re a good candidate for an automatic investment program.
Let’s learn more about what an AIP is, the benefits to expect and how it can help you reach your retirement goals.
How Does Automatic Investing Work?
Many people delay investing because it’s intimidating or they're afraid of the risk. This is especially the case when you’re already living paycheck to paycheck and you don’t have money to just throw away. Thankfully, an AIP does not require you to have investing knowledge - getting started is as simple as opening a bank account.
Additionally, when you put your investments on autopilot, you stop your fears from getting in the way. Emotional investing is when people invest money based on an emotion like greed or fear. This is why so many people buy at market tops and sell at market lows. But rarely is investing out of emotion a good thing.
Why Should I Have an Automatic Investment Plan?
If you’re not putting some of your paycheck aside for retirement every month, you’re missing out on opportunities to secure your financial future. Here are some of the reasons why you should automate your investments:
- It stops you from spending money that you should be putting away. Once you start making automated investments, you won’t even notice this money isn’t there!
- It avoids arguments between you and your spouse. Rather than fighting over how much money is put away, it’s already decided for you.
- It saves time and relieves stress. Everything is done for you so that you can sit back and enjoy more of your free time. It also provides you with peace of mind for your future!
- It prevents you from making poor investment decisions. Things like day trading and micro-investing apps can steer you down the wrong path. Automated investing prevents these poor decisions.
Ready to Set Up Automatic Investments? Schedule a Consultation Today.
Whether you’re ready to set up an automatic investment program, or you have questions about doing so, contact Leonard Financial Solutions. Our retirement planners in New Jersey will go over your financial picture and determine the best ways to save for retirement while living today!