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AIP - Automatic Investment Plan

Discussion in 'Money Management' started by jeremiah_iusitini, 18th Feb, 2009.

  1. jeremiah_iusitini

    jeremiah_iusitini New Member

    Joined:
    18th Feb, 2009
    Posts:
    2
    Location:
    Brisbane, Sunny QLD
    Hi folks, Im totally new to the world of finance and am looking to get involved, I was told to begin with something called an Automatic Investment Plan. Theres 2 things I would like to know,
    1: Is this a good idea?
    2: How would I go about starting one?

    Any feedback/advice on this would be much appreciated!!

    Cheers.:)
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    9th Jun, 2005
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    Location:
    Sydney, Australia
    The simplest way to do this is to find a good conservative managed fund which offers an automatic investment plan and invest your money there - they will direct debit the money from your account every month and invest it based on your instructions ... no effort required on your part once you've set it up (beyond making sure that there is sufficient money available in your account!)

    If you're not ready to invest in the sharemarket yet and don't have much cash saved yet - you may want to start with an automatic investment into cash - companies like ING Direct allow you to set up direct debit to put aside cash into a high interest account automatically (just like with the managed fund I mentioned above - except the investment is cash rather than shares).

    Some savings accounts let you go one step further and direct credit money from your pay into that account, so you never actually see the cash - you learn to live without it for managing day-to-day expenses. Your employer needs to support the ability to split your pay into multiple bank accounts for this to work.

    These are just a few ideas.

    There have been some books written about this type of thing. I think John Burley is one author who wrote about AIPs.
     
  3. jeremiah_iusitini

    jeremiah_iusitini New Member

    Joined:
    18th Feb, 2009
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    Location:
    Brisbane, Sunny QLD
    Thanks alot for your help Sim its much appreciated! Yeah I dont think Im quite ready for the sharemarket yet and I dont have much money put away so Im going to try with ING direct, how much interest do ING offer as opposed to the banks? And also are they able to direct debit on a weekly basis or is it only monthly?
     
  4. AsxBroker

    AsxBroker Well-Known Member

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  5. 1300 GET A PLAN

    1300 GET A PLAN Active Member

    Joined:
    2nd Aug, 2008
    Posts:
    37
    Location:
    Gosford, NSW
    Hi Jeremiah,

    AIP's are the best way to get started to build your wealth.

    I know from experience, getting people to put the money away manually every payday doesn't work, no matter how good their intentions are.

    Good luck with it.

    Cheers,
    Mike