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Bottom Line Up Front

  • Investing the same amount regularly (dollar-cost averaging) is a long-term strategy to average out the market highs and lows.  
  • Take advantage of compounding by reinvesting what you’ve earned. 

Time to Read

2 minutes

June 27, 2022

Ever tried to plot the perfect time to invest? The truth is, it’s impossible to predict.

What we do know is that it’s a smart idea to get started as soon as you can. Why? Because you have greater potential to earn more on your money over time and reach your financial goals sooner. Here are some ways investors grow their portfolios.

Invest the Same Amount Regularly

Since we can’t predict the market’s ups and downs easily, it may help to take a simpler approach. Consider investing the same amount at regular intervals. This method is called dollar-cost averaging. It’s a long-term strategy that some investors use to average out market highs and lows. And, because you’re not waiting for the perfect time, you’re more likely to catch those great days.

 

Take Advantage of Compounded Earnings

Whether your portfolio increases because of stock gains or dividends, reinvesting what you’ve earned will have a compounding effect. That means earning gains on your gains. And, the longer you invest, the more your portfolio will grow.

Take Advantage of Compounded Earnings

Whether your portfolio increases because of stock gains or dividends, reinvesting what you’ve earned will have a compounding effect. That means earning gains on your gains. And, the longer you invest, the more your portfolio will grow.

 

Create a Financial Plan to Achieve Your Goals

When it comes to investing, patience is a financial virtue. So, whether you’re working toward short-term or future goals, a long-term plan can help you get there. 

Consider formalizing your financial plan with the help of Navy Federal Investment Services. Get a comprehensive look at your finances—at no cost. Then work together to create a personalized plan to meet your financial goals.

Key Takeaways Key Takeaways

Disclosures

Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services, LLC (NFIS), a member of FINRA/SIPC and an SEC-registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Financial Advisors are employees of NFFG, and they are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information. 

This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.