Financial Definitions - Automatic Investment Program Example #3
3) Example #3 of an automatic investment program would can be a payroll savings plan (usually in the way of bonds). These automatic investment programs entail the investment in bonds by employees of a company. On the event of retirement the inactive employees can automatically withdraw monies on a monthly, biweekly, or weekly schedule. These withdrawals mean the automatic selling of a certain amount of bonds in order to ensure a full, and consistent retirement income.
Other Entries That Might Interest You:Financial Definitions - Automatic Investment Program --->An automatic investment program is a program in which an investor can accumulate or withdraw funds automatically. Some of the most popular automatic investment programs will be mentioned in the next three following posts. Click the "next" link for those....Financial Definitions - Automatic Investment Program Example #2 --->2) Example #2 of an automatic investment program would be for stock dividends. This means that winning shareholders who are enjoying profit in the way of dividends may have those money used to buy more shares in the company. This....Financial Definitions - Automatic Investment Program Example #1 --->1) Example #1 of an automatic investment program would be a mutual fund that automatically withdrawals money from a client's bank account (checking or savings) that can be invested in the mutual fund. The mutual fund can also automatically re-invest....Financial Definitions - Automatic Premium Loan --->First of all, an automatic premium loans, and all the interest incurred, can be paid back before the value is exhausted. An automatic premium loan also keeps the policy in play (or in force) when a premium is not paid....Financial Definitions - Automatic Funds Transfer --->Automatic funds transfer is the process of transferring funds from one financial company to another. A classic example would be the transfer of funds via digital methods overseas between a mutual fund broker and a money market management company. This....
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