Bankrate.com – June 18, 2015
In this article David Schneider explained why being a consistent saver is actually more important to reaching your financial goals than possessing great investment prowess.
In it he said “An average saver will do better than a great investor who doesn’t save,” and also “Let’s say you are in the rare group that can outperform (the market by) 2 percentage points per year — few can do that. But you can’t accumulate as much as someone who was more of an average investor but saved in a disciplined and consistent way.”
Please note, examples referenced in this article are hypothetical and for illustrative purposes only. The rates of return do not represent any actual investment and cannot be guaranteed. Any investment involves potential loss of principal. Investing regular amounts steadily over time (dollar-cost averaging) may lower your average cost per-share, however periodic investment programs cannot guarantee profit or protect against loss in a declining market. Dollar-cost averaging is a long-term strategy involving continuous investing, regardless of fluctuating price levels, and, as a result, you should consider your financial ability to continue to invest during periods of fluctuating price levels.
Read more: Bankrate.com
