| Probably the best investment management tool | | | | investment. |
| that I use, this tool makes successful investment | | | | Using the investment management tool called |
| management a lot easier when investment | | | | dollar cost averaging, you bought the following |
| markets are challenging. With this management | | | | number of shares from year 1 through year 4: |
| tool you can lower your risk and also profit while | | | | 500, 625, 1000, 625. That gives you a total of |
| others pay the price and lose money. Now it's | | | | 2750 fund shares worth $10 each, for a total |
| time to share. | | | | investment value of $27,500. The value of your |
| Successful investment management has eluded all | | | | stock fund went no where and you are still $7500 |
| but the most experienced investors for the past | | | | ahead. Very simply, our investment management |
| ten years. Using the best investment tools out | | | | tool forced you to buy more shares when stock |
| there you could have been one of the few to | | | | prices were lower; and you bought fewer shares |
| make money investing without breaking a sweat. | | | | when prices were up. The more volatile and |
| Here's an investment tool that would have | | | | uncertain the markets, the better dollar cost |
| worked for you, and should continue to do so in | | | | averaging works. |
| the future. It's called dollar cost averaging, and the | | | | Please pay attention to the following. I mentioned |
| best investment vehicle to use here is a | | | | earlier that the best investment vehicle to use |
| diversified stock fund. So, let's say you want to | | | | here to get growth and make money investing is |
| set aside $5000 a year to earn higher returns, | | | | a stock fund of the diversified variety. Do not use |
| get growth and accumulate money, perhaps in an | | | | this management tool with an individual stock, or |
| IRA retirement account. Here's how it works. | | | | do so at your own risk. Why? Because any stock |
| At the same time each year you send $5000 to | | | | can go down the tubes and leave you holding a |
| a diversified stock fund (no-load variety), no | | | | bunch of shares worth absolutely nothing. For this |
| matter what the economy or investment | | | | to happen to the average diversified stock fund, |
| markets are doing. Let's look at an example | | | | the good old USA would need to virtually cease |
| somewhat similar to the turbulent times we've | | | | to exist as we know it. |
| experienced lately in the USA. You've made four | | | | No investment management tool provides you |
| yearly investments, and are reviewing the results | | | | with a complete investment strategy. But if you |
| just before laying down your $5000 for year five. | | | | combine proper asset allocation & diversification, |
| The share price of your stock fund when you | | | | plus balance & rebalance to this one, you'll be |
| bought in over the past four years, in order: $10, | | | | hitting on all cylinders. With good investment |
| $8, $5, $8. As you ponder sending in another | | | | management in your pocket the sky's the limit. |
| $5000, your stock fund sits at $10 a share, right | | | | Please note that our above example does not |
| where it was when you got started. You can't | | | | even consider the added value that reinvested |
| make money investing in a market like this you | | | | dividends would have added. |
| think... until you look at the value of your $20,000 | | | | |