Looking to better your financial wellness this year? Here’s a tip: Automate your retirement savings contributions. By automating your savings, you accomplish the following:
Dollar cost averaging
Dollar-cost averaging is the practice of investing a fixed dollar amount on a regular basis, regardless of the share price. This strategy helps manage price risk, as you are buying shares in smaller amounts at regular intervals versus buying shares in bulk when the market is either up or down.
If you have a workplace retirement account such as a 401K or 403b, you are likely already using dollar cost averaging.
Sticking to your financial plan
Betterment’s goal forecaster allows you to see how much you need to save annually to reach your retirement goals. Our advisory team can meet with you to discuss the savings strategy that makes the most sense for you and your future. Then, set up the automated contribution and let it do the work for you. This will allow you to stay consistent with your goals and feel confident toward your future.
Ready to get started?
Great news: You can automate your contribution to your retirement account through Betterment. Here’s how:
- Login to your Betterment account here.
- Click “Deposit”. Make sure you have a funding account connected. Instructions for this can be found here.
- Select the account you would like to contribute to (ex: Roth IRA).
- Select “Contribution” as the deposit type.
- Select the Frequency (ex: monthly) and the amount ($200).
- Review and Submit the deposit.
If your account is at Charles Schwab, you can simply reach out to your advisory team to get started. Alternatively, click here to schedule an appointment.