As you begin the New Year, probably with at least one resolution concerning your finances, we want to remind you about a simple practice that can help you achieve your financial goals: making systemic investment purchases.Making monthly investments, such as through automatic transfers from your checking or savings account to buy mutual fund shares, helps you regularly build your investments, cross off an item on your “to do” list, and take the anxiety and guesswork out of trying to “time the market.”
While almost everyone needs more time to manage their investments, the all-too-common reality is that saving for our future, often falls victim to the pressing day-to-day demands of work and family. As a result, investors often scramble to meet important deadlines to catch up. We see this at Green Century, where the largest number of investments often occurs around December 31st and the IRA deadline of April 15th.
But what if you could stop worrying about missing these deadlines and take the stress out of meeting your annual contribution goals? And what if this practice also provided you a way to purchase shares closer to the average share price for the year? That would be a win-win situation – and this option is currently available when you open an account with The Green Century Balanced Fund or Equity Fund. Or, if you’re already invested with Green Century, you can use this form to start an Automatic Investment Plan.
Stop Worrying About “Timing” Your Investments
The stock and bond markets are constantly in motion and performance moves up and down. But when you use systematic investments and even out share purchases over time, you can reduce your likelihood of falling into the market trap of buying high and selling low. Systematic investments of stocks, bonds, or mutual funds, also called “dollar cost averaging,” help you take the guesswork out of when to buy investments.
Buying a fixed dollar amount of a specific investment on a regular schedule helps you buy more shares when prices are low and fewer shares when prices are expensive. As a result, you lower the total average cost per share of the investment. This practice relieves you from looking into a crystal ball and trying to “time the market,” which even investment professionals cannot successfully and consistently do.
Enjoy Lower Minimums
Another advantage of making systematic investments is that investors who use the Green Century Automatic Investment Plan (AIP) can get an added benefit of lower minimum investments. For instance, the regular account minimum of $2,500 is lowered to only $1,000 for investors signing up for the AIP with at least $100 per month investment in either the Green Century Equity Fund or the Green Century Balanced Fund.
How to Get Started
To streamline meeting your financial goals, we encourage you to implement effective financial practices, including systematic investment purchases. Learn more about starting Green Century’s automatic investment plan here.
Photo credit: Fuse You should consider the Funds’ investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus that contains this and other information about the Funds, please click here, email firstname.lastname@example.org, or call 1-800-93-GREEN. Please read the Prospectus carefully before investing.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, or the market as a whole and may perform worse than the market. Bonds are subject to risks including interest rate, credit, and inflation.
The Funds’ environmental criteria limit the investments available to them compared with funds with no such criteria. Under certain economic conditions, this could cause the Funds’ investment performance to be worse or better than similar funds with no such criteria.
Dollar cost averaging and automatic investment plans do not ensure that you will make a profit and do not protect against loss in declining markets.
Each individual’s tax situation is different; you may wish to consult a tax advisor regarding your own tax situation. Neither the Funds, their Advisor, nor their Distributor provide tax advice.
The Green Century Funds are distributed by UMB Distribution Services, LLC, 1/14