At Rivkin, we recognise how important it is to empower clients with investment strategies that can help their wealth grow steadily and securely.
One strategy we strongly recommend is making regular contributions to your investments over time, which can dramatically increase your financial growth.
There are several key benefits to regularly contributing to investments, including:
Dollar-Cost Averaging: This helps to mitigate volatility and the risk of a poorly timed lump sum investment. Investing regular amounts can lead to a lower average cost per share over time.
Compounding Interest: Your regular contributions aren’t just earning returns — those returns start to earn their own over time. This compounding effect can significantly grow wealth over time.
Discipline: Regular investments encourage a disciplined approach to saving and investing. It becomes a part of your routine, which can significantly boost your long-term financial health.
The following example highlights the importance of adding regular contributions to investments over time. In this example, client one invests a lump sum of $50,000 into the US Growth portfolio and makes no further contributions. Client two invests a lump sum of $50,000 initially, followed by an additional $5,000 every three months. Over a two-year period, client one generates 8.97% per annum and $9,376 in profit, while client two generates 10.16% per annum or $14,266 profit.
Combining compounding and dollar-cost averaging with regular contributions are key drivers of exponentially growing wealth over time. Compounding, the reinvestment of earnings, generates profits not only on the initial principal but also on the accumulated interest, dividends, or capital gains. Regular contributions or dollar-cost averaging, on the other hand, involves investing a consistent amount of money at regular intervals, regardless of market conditions. This approach reduces the impact of market volatility and mitigates the risk of poorly timed investments. Together, these practices provide a disciplined approach to investing, helping individuals reach their financial goals through thoughtful planning and patience.
Disclaimer:
Performance data shown represents past performance. Past performance is not a guarantee of future performance. Investing and trading carry financial risk, when judging performance please consider the different types of investments and levels of risk associated. Depending on the product and the provider your actual trading costs can be higher or lower than this. Please check your trading costs with your provider. The calculations above are based on the returns from the Apex US Growth Separately Managed Account with per annum returns based on the Internal Rate of Return from cashflows. More information about how Rivkin calculates and reports performance can be found here https://rivkin.com.au/all/rivkin-performance-methodology/
Features of Separately Managed Accounts
- Choose from four professionally constructed portfolios depending on your needs
- All portfolio management is taken care of for you
- Access Rivkin’s systematic strategies that have proven themselves in live trading in our retail advice product
- Obtain institutional brokerage rates that are not typically available to individual investors
- Execution is performed using algorithms that spread trading out across the day to obtain a fair price
- No upfront cost – management fees are deducted from your account on a monthly basis
For a complete list of risks and costs involved with Apex Separately Managed Accounts please refer to the Product Disclosure Statement. This PDS has been prepared and issued by The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235150)
Please click here or request the PDS to understand the full risks and cost of the product before making a decision to invest in it.
