Self-Funding Investment Accounts

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When a person is young, a self-funding investment account is a great strategy for saving towards retirement. Become familiar with the fixed amount of dollars in a self-funding investment account with help from a registered financial consultant in this free video on investments and personal finance.

Part of the Video Series: Beginner Investing
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Video Transcript

This is financial adviser Patrick Munro talking about self-funding investment accounts. Basically, there's a term in the investment community known as dollar cost averaging. What happens is an individual will take and fund their investment accounts with the same amount of dollars each and every month, and that is their goal. But the value of stocks rises and falls. Specifically in this environment, stocks have been falling in price. In other words, stocks are on sale. If you continue to self-fund your retirement accounts or investment accounts, you're actually buying a stock on sale and getting more stock for the same amount of money. This is a great strategy to do when you're young. You know, you'll see that the accounts and value of the stock that you do achieve is much larger than the amount of stock that you actually paid for. This is called self-funding your investment accounts, and it's a good strategy to adopt when you're young and continue to stay with going forward. And it's a fixed amount of dollars that you can become familiar with. This is Patrick Munro, financial adviser, talking about self-funding investment accounts.

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