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Marco – RBC Advisor: When you're just starting to invest, it can be intimidating. Even if your investment advisor
is really friendly and approachable! But in all seriousness, if you don't know what you don't know, it can be a challenge to get started.
And one of the misconceptions many people have is that they don't have enough money to start investing now. A lot of people feel that
they just won't be taken seriously if they have only a little bit of money to invest every month. So instead, they put off investing
until they've accumulated a larger amount. But the fact is investing a consistent amount over time is the best way to invest. Why?
Well, when you invest the same amount on a regular basis in investments such as mutual funds, you can take advantage of
Dollar Cost Averaging. The benefit of Dollar Cost Averaging is that over time, you will pay the average cost per unit and will not have
to try to “time” the market and figure out when to buy or when to sell. When the cost of what you're buying goes up, you end up buying less.
But when the cost goes down, you get to buy more. For example, say you decide to purchase $100 worth of a mutual fund every month for 3 months.
In January, one unit of the mutual fund is worth $33, so your money buys you three units. In February, it's worth $20, so your $100 buys you
five additional units this time. Finally, in March, it is worth $25, so you buy four units. In total, you've purchased 12 units for
an average price of approximately $25 each. And you didn't have to guess when the price would go up or down.
The easiest way to achieve Dollar Cost Averaging is with a regular, ongoing savings plan. If you set up automatic contributions,
you don't have to worry about making the payments yourself. And you truly don't need a lot to start - your monthly contributions can be
as little as $25 per month. And when you get your statement, you'll be surprised how fast this can grow.
To learn more about saving and investing, visit our website or talk to an RBC advisor.