Listen "Investment Term Of The Day : Automatic Investment Plan"
Episode Synopsis
An automatic investment plan is an investment program that allows investors to contribute money to an investment account at regular intervals to be invested in a pre-set strategy or portfolio. Funds can be automatically deducted from an individual's paycheck or paid out from a personal account.An automatic investment plan is one of the best ways to save money. Numerous market mechanisms have been devised to help facilitate automatic investment plans. Investors can contribute through their employer by scheduling automatic deductions from their paycheck for investment in employer-sponsored investment accounts. Individuals can also choose to set up automatic withdrawals from a personal account.Employers offer various options for automatic investing through their benefits programs. Investment options help to support both short-term and long-term investment goals for employees. The most common investment vehicle for employer-sponsored automatic investing is a 401k. Employees can choose to automatically invest a percentage of their paycheck in an employer-sponsored 401k. Many employers will often match a percentage of their employees' automatic investment as part of their benefits program.Companies may also offer additional options for automatic investing, such as company stock or Z-shares at a mutual fund company. These automatic investing options help to promote loyalty and long-term tenure.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.
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