Don’t Get Down in a Down Market

As we go through this volatile stock market environment, there has never been a better time to look at the fundamentals of investing.  One very basic concept that people forget about is called Dollar Cost Averaging .  

Dollar cost averaging allows people to take advantage of investing in a down market by creating a systematic monthly contribution to a long term diversified portfolio that a good licensed financial coach can help with. 

The first benefit of utilizing this concept is realizing that when the market is down like now, every share of the company someone is investing in is on sale.  It always makes me wonder why the only “sales” people tend to shy away from is sales on investments!

As we think about the things we purchase, TV’s, groceries, clothes etc.., are we looking for the most expensive price on these items or the best value for our money?  Why not look at investing the same way?

Investing monthly with a consistent contribution , $100, $200, $500 per month allows that money to work for you in a down market by purchasing those shares at a discount.  The more shares someone  can buy with that contribution, the more growth they will have when that market comes back, which by the way, it always has!  That’s great news!

I started investing $200 per month in a diversified portfolio at age 19.  I can tell you I have more in my retirement account now than I ever would have if I had not done this! 

So I love talking to people in their 20″s-30’s about long term investing and talking to people in their 40’s and up about shorter term strategies.  Everyone can take advantage of this great timeless concept which should be good news to everyone concerned about a down market!  If someone has money to invest , now is actually the best time!

The attached PDF called “How Money Works” describes the benefits of these and other concepts.  Intended for Educational purposes only.  

I hope this is useful for everyone! 

All the best!