Systematic Investing using 4 Basic Guidelines

Date

Mr. and Mrs. Client
Address
Home town, USA  Zip

Dear Client:

Many individuals try to determine the “best” time to invest.  But even professionals find it virtually impossible to predict market highs and lows.  At any one time you’ll hear some experts predicting bad times and other experts predicting good times ahead for investing.  And, aside from trying to “time” the market, few individuals have the time, expertise or resources to choose specific investments with the best potential.

At (your Broker dealer), we recommend a common sense approach to investing - and one of the most sensible approaches is long term, systematic investing (although, as with any investment strategy, it does not assure a profit and does not protect against loss in a declining market).  A benefit of systematic investing is that it lets you put the 4 basic guidelines for investing into action for yourself.  These basic principles that form the core of a solid, long-range investment philosophy are outlined on the attached sheet.

Following these 4 basic investment guidelines, and working with a registered representative, you can benefit in 2 important ways:

·        You will be investing according to a disciplined strategy.

·        Your investments will follow a specific investment philosophy. 

If you have questions or would like to begin this basic, disciplined investment approach, please give me a call and we’ll set up a time to meet.  I promise - no hype, no sales pitch - just an opportunity for you to get some answers and explore what options might be right for you.

Sincerely,

{YOUR NAME}

Registered Representative

THE 4 BASIC GUIDELINES  FOR INVESTING 

1. THE THRIFTY WILL OWN THE SPENDTHRIFTS
   If you invest regularly over the long haul, you are much more likely to build assets and reach your goals than if you invest in a haphazard fashion, attempting to “play the market” or “buy the latest trend setting product” with no clear objectives in mind.

2. BUY LOW, SELL HIGH
   If you follow a strict program of regular, systematic investing you may help turn price fluctuations to your advantage through a technique known as dollar cost averaging.  With this strategy, you purchase more units or shares of an investment when the price is low and fewer when the price is high, which can result in a lower average cost per share over time.
   Note: This plan does not assure a profit and does not protect against loss in declining markets.  Such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities.  Investors should consider their financial ability to continue their purchases through periods of all price levels.

3. ALL INVESTMENTS ARE RISKY
   There is the risk of losing purchasing power to inflation and the risk of losing actual value due to market price fluctuations. Diversification is a recognized method of helping to reduce risk by not putting “all your eggs in one basket.” Also, investing rather than holding cash may help offset inflation.

4. DON’T FOLLOW THE CROWD
   With systematic investing, you naturally implement the fourth guideline because you invest regularly month after month, ignoring short-term price trends and the behavior of the crowd.

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