I do not have automatic investments plan yet. However, I plan to create automatic investment plan using Tiger's auto-investing function in the near future. The stocks and ETFs that I intend to auto-invest into include:
4.$SPDR Portfolio S&P 500 ETF(SPLG)$
Setting up automatic investments plan is a good way to get into dollar-cost averaging, which is a fancy way of saying that the shares I own will have had a variety of purchase prices because I bought them at different times. When shares are more expensive, I buy fewer of them. When they are cheaper, I buy more of them. Overall, this will push down the average cost of your shares.
I can easily set up automatic investments plan using Tiger's auto-investing function, so as to make it easier to stick to my plan. Not only is setting up automatic investments a way to simplify my life, it is just smart investment behavior in general. It removes the pressure to decide when to make each investment—sidestepping the possibility that I might be too indecisive to make any move at all.
Comments