April 1, 1999—with a coffee shop en route to
practically everyone’s workplace, most commuters, perhaps including yourself,
don’t hesitate to spend $2.50 or more a day on their favorite caf? latte or mocha.
While the purchase is certainly satisfying at the time, once the caffeine has left your
system, you don’t have much to show for the investment.
Imagine instead if you took that $50 a month ($2.50 x 20 working days) and invested it
for your retirement or some other long-term financial goal. After ten years, even if you
only earned a conservative 8% per year, your coffee money would grow to over $9,000! (see
graph)
Small-investor friendly mutual fund companies, like Westcore Funds, offer programs to
help you get ahead, even if you think you just don’t have enough money to be an
"investor". Automatic investment programs deduct your monthly contribution
directly from your bank account in an amount that can be made small enough that you hardly
miss it. These programs are ideal for beginning investors because they offer:
- Discipline
—automatic contributions place your financial goal as a priority and
become an indispensable part of your monthly budget regardless of the highs and low of the
market
- Regularity
—a consistent amount is invested at regular intervals
- Dollar-cost averaging
1—with this method you buy more shares when the
price is low, and less when prices rise, lowering your average price per share
- Low minimum investments—
these plans typically provide investors with the
lowest minimums making investing a possibility for some of the least flexible budgets
While we’re not recommending that you give up your daily caffeine craving, we
would suggest that you consider paying yourself first by beginning an investment plan.
Then you can determine whether or not you need to sacrifice gourmet java for the office
blend.
At Westcore Funds, better research makes the difference. The 100% no-load Westcore Fund
family, based in Denver, Colorado, consists of five equity funds, three bond funds, and a
non-proprietary money market fund. For more information about Westcore Funds, or to obtain
a prospectus containing more complete information including charges and expenses, please
visit us at our web site, www.westcore.com, or call us at 1-800-734-WEST.
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