Retirement Planning

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

Annuity

Understand the meaning and definition of Annuity in the context of stock market, trading, and investments.

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Form 8606

Understand the meaning and definition of Form 8606 in the context of stock market, trading, and investments.

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Vesting

Understand the meaning and definition of Vesting in the context of stock market, trading, and investments.

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Death Distribution

Understand the meaning and definition of Death Distribution in the context of stock market, trading, and investments.

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Tax-Deferred

Understand the meaning and definition of Tax-Deferred in the context of stock market, trading, and investments.

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