An obvious but under-utilized tool that can quickly accelerate an investment account's growth is a commitment to automatic recurring contributions. Whether investment performance is up, down, or sideways for any given period, a steady stream of additional capital flowing into the account will set the investor up for increased growth. While this strategy is relatively intuitive, it is surprising to see the number of investors that make the initial investment and rarely (if ever) make additional contributions to the account in question. This certainly can still be a successful strategy, but a commitment to additional contributions undeniably positions the investor for more significant account growth over a more extended period. Investors would be wise to challenge themselves to make small adjustments to their budgets to allow for these recurring contributions.
Further, competent advisors are actively having these conversations with their respective clients to ensure that that the clients are taking the proper steps to achieve their investment and financial goals. If you haven't contributed to your investment accounts since that first lump sum or if your current investment advisor hasn't talked to you recently about strategies to accelerate your accounts' growth, it might be time to have a conversation with us. At Duncan Williams Asset Management, we meet with our clients face-to-face every quarter to review investment performance and discuss the long-term plan. We help guide our clients to a sound strategy designed to position them to achieve their financial goals. Give us a call today, and we can help determine if recurring contributions are right for you!
We understand women may have unique financial needs due to their life stage, such as managing debt, saving for children's education, caring for aging parents, or planning for retirement.
Contributing to a retirement account like a 401(k) or IRA can reduce your taxable income and help you save for retirement.
Another choppy week A key U.S. Federal Reserve meeting and continuing concerns about bank stability dominated the week as the major U.S. stock indexes recorded gains of 1% to 2%. Despite the overall rise, markets were unsettled, shifting quickly between gains and losses.