Retirement PlanningDollar Cost Averaging* Roth IRA Roth IRA Conversion Cost of Living Allowance (COLA) Individual Retirement Accounts (IRAs) Individual Retirement Account (IRA)
Automatic Investment Plan (AIP)
An automatic investment plan, or AIP, is a tool that facilitates the implementation of a dollar cost averaging approach in investing. Through this method, an investor can regularly set aside a predetermined amount of money within a defined time period. For instance, one can establish an AIP with their custodian to invest $50 per week into a particular mutual fund. This systematic approach can help mitigate the risk of investing large sums at once and potentially lead to long-term gains.
Related terms
Understand the meaning and definition of Dollar Cost Averaging* in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Roth IRA in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Roth IRA Conversion in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Cost of Living Allowance (COLA) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Individual Retirement Accounts (IRAs) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Individual Retirement Account (IRA) in the context of stock market, trading, and investments.
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