When it comes to running a successful business there is nothing like knowing “the plan” for the month, for the quarter, and for the year. In fact, the general business practice of planning and reviewing the business happens on a regular schedule, generally timed quarterly and annually throughout the business calendar. The general thought process is that the more a business can review how they performed and plan ahead, the more it takes advantage of the ups and downs of their operating environment resulting in long-term success. In fact, imagine if we only conducted business planning one time per year by inconsistently planning in May of one year, August in another and November in another – needless to say, we would have to be really good at anticipating what would happen over the year.

While it may be hard to believe, this regular business planning is contrary to what we see from business owners on the personal side of their financial lives. While they plan regularly throughout the year for their business, it is common for us to see business owners who make one time a year – if at all – “annual investment decisions” that they anticipate will last them another twelve months.

One of our current clients, whom we will call “Mrs. Dollar-Cost Average” or Mrs. Average, runs a remarkably successful family-owned paper wholesaling business. While the business is successful, there is no doubt that their regular planning has helped them withstand a downturn in the paper industry. When Mrs. Average and her family became clients of ours several years ago it was no surprise that Mrs. Average planned regularly for her business, but honestly felt planning for her financial future was not overly exciting. In fact, she believed that the more successful her business was, the more successful she would be personally. We suggested that Mrs. Average take advantage of the principle of “Dollar-Cost Averaging” immediately as a business owner to remove the irregular pattern of investment decisions in her financial plan.

With her willingness to follow our guidance, we highlighted the following aspects and benefits of dollar-cost averaging:

Are you implementing the principles of dollar-cost averaging to harness the discipline of investing equal amounts at regularly timed intervals throughout the year leading to long-term wealth building? If you are not and want to learn more about the principle of dollar-cost averaging, please don’t hesitate to reach out to a member of the Saling Wealth Advisor team.

This material is not financial advice or an offer to sell any product and is not a recommendation to buy or sell any particular security. The opinions expressed are those of the Saling Wealth Advisors’ Management Investment Team and are subject to change without notice.

Saling Wealth Advisors (“SWA”) is an independent SEC registered investment advisor. Registration does not imply a certain level of skill or training. This material is provided for informational and educational purposes only. More information about SWA including our advisory services, fees, and objectives can be found in our Form ADV Part 2A, which is available upon request.