With most of the major U.S. indexes sitting at or near all-time highs, one of the biggest hurdles investors must overcome is the fear of putting their money to work. Thankfully, there’s a simple way to alleviate this worry: scaling into stock positions over time.
Why Scale In?
Scaling into positions is a tried and true method of putting money to work for long-term investors. The concept is simple: purchase relatively small amounts of shares over time on a regular basis until you’re fully invested.
When you scale in, you accomplish the following:
» Remove the mental barrier of investing a large sum, and
» Discover that there is no “perfect” price to buy a stock at.
It can be a daunting task to invest your entire life savings, so let’s take a look at an example in action.
A Simple Strategy to Scale Into Positions
For this example, we’re going to assume an investor has $100k to invest in quality
No comments:
Post a Comment