The advantages of Accumulation Plans

The advantages of Accumulation Plans

The advantages of Accumulation Plans

And how to manage them

The advantages of Accumulation Plans

In order for an accumulation plan to succeed is best if we manage to make the steps in our investment plan part of our routine. That way we will forget about it completely. That’s what we’ll discuss about in the final section of the book One Million for my Daughter

Specifically, we’ll see how to automate both the deposit and the investment, making everything easier. So much so that, after a while, we won’t pay attention to it anymore, we will simply adjust our monthly expenses directly to a lower income, as if the saved amount never existed.

In the meantime, here’s a piece of information you might find helpful:  time and discipline are the tracks on which our road to the million runs.

Time: the investment horizon must be long enough in order to benefit from the impact that the passage of time will play on our profits. Sometimes, the “long term” can be scary. But this should not be the case. On the contrary, the years that must pass are not an obstacle that separates you from your goal, but real steps that will accompany you to reach you financial target.

As a matter of fact, periodic investments protect us from the risks typical of short-term operations. Not only does it amortize the fluctuations and violent movements, but it also frees us from the choice of the moment of entry (timing). To put it in other words, the accumulation plan preserves us from possible bearish trends, as well as from our own emotional swings, which could lead us to make the wrong decisions.

If you’re interest in knowing more about the book, visit www.onemillionformydaughter.com

ABOUT THE AUTHOR

Pietro Di Lorenzo