Put It on Automatic

Physician's Money Digest, October15 2003, Volume 10, Issue 19

Physicians who aren't very knowledgeable about thefinancial world often ask, "What's the best investmentstrategy?" That's easy—start an automatic investmentplan where you invest a set amount of money inthe stock market every month. For example, if youwere to invest $200 per month (just $50 per week) for30 years with a 10% annualized return, you wouldhave more than $450,000 for retirement. Benefits of anautomatic investment plan include minimal ongoinglegwork and forced investment discipline. But perhapsthe best feature is that doctors with small budgets maystill participate. If you're willing to set up a plan wherea set amount is deducted from your bank account eachmonth, most of the large mutual fund families, includingT. Rowe Price (800-231-8432), Gabelli (800-422-3554), Vanguard (800-662-7447), TIAA-CREF (800-233-1200), and Fidelity (800-343-3548), will let you in thedoor for as little as $50 to $100 upfront.