A lot of people want a savings plan where they actually money, not only skimmed importance. Also considering a lot of money to invest in stocks and bonds if they found that it can be done without much risk. Here is a custom made savings plan and investment programme I offered active customers when I was a financial planner.

Jack we use our example.Jack wanted a savings plan that is safe and more interest than he could earn at the Bank. Plus he didn’t want to accumulate too much money in the bank where it was so readily available, because he always inclined to withdraw and.

Jack has never been in the money to invest in stocks and bonds to make money because he abhorred risk and not to invest. How did He disliked and has no confidence in the investment industry or those who believe in the work. Because he knew that he needed an investment programme, as well as a savings plan that if he wanted to earn higher returns, he decided to talk with me.

We started first financial adventure with Jack’s $ 600 per month (automatically) arising from his bank account to the family of a large investment fund. Everything went directly to a money market fund where it was safe and earned a competitive interest rate.Plus, this gave us flexibility because money easily from there can be moved to one of the other funds offered by the family of the Fund.

Money market funds allocated as his savings plan. The $ 600 that went into each month, would be $ 300. the other $ 300 was his plan for investment and automatically every month would flow in three different funds, every $ 100.

The three other funds were: a short-term bond fund, an intermediate-term bond fund and a conservative stock fund. The bond funds gave him more interest in the form of dividends, which were just automatically reinvested to buy more shares.The Fund offered shares dividends (which were also invested) and growth.

Jack was now to invest money, as well as to save it.He eventually became a investor, accept only a moderate to low level of the overall risk.If the money flowed from his bond funds money market Fund every month and stock fund, every purchase of $ 100 automatically buy more shares when the price down and less when the price was higher.

This is called dollar-cost averaging, and it works to reduce the average cost per share, dividends reinvested as Jack periodically he would accumulate more shares.

There you have it. a savings plan and an investment programme all in one simple package. Jack was that continues to be a client of mine twenty years later, and finally allowed me to be a little more aggressive in my recommendations. but he still does not have the investment industry trust.

A retired financial planner, James Leitz holds a master in business administration (finance) and 35 years of experience investing. 20 years he advised individual investors, work directly with them to help to achieve their financial goals.

Jim is the author of a complete investors guide, Invest informed, designed for the average investors or potential investors of all levels of financial background and experience for go. more information on investment and invest and his new financial Guide to http://www.investinformed.com