Ready to build long-term wealth the smart way? At Paul Merriman, we champion the disciplined approach of "Fixed Contributions." This strategy, often referred to as dollar-cost averaging, is a cornerstone of successful investing, particularly for those in the accumulation phase of their financial journey.


Instead of trying to time the market – a notoriously difficult and often fruitless endeavor – Fixed Contributions simply means investing a set amount of money at regular intervals, regardless of market conditions. This simple yet powerful method harnesses the magic of consistency to help you grow your wealth steadily over time.


Why Embrace Fixed Contributions?

  • Removes Emotion from Investing: Market fluctuations can trigger fear or greed, leading to impulsive and often detrimental decisions. By committing to fixed contributions, you eliminate the emotional guesswork, ensuring you stick to your plan through market ups and downs.
  • Harnesses Dollar-Cost Averaging: When you invest a fixed amount regularly, you automatically buy more shares when prices are low and fewer when prices are high. Over time, this averages out your purchase price, potentially leading to a lower overall cost per share and enhanced returns.
  • Builds Discipline and Habit: Regular contributions foster a powerful financial habit. It becomes a non-negotiable part of your budget, similar to paying a bill, ensuring you consistently put your money to work.
  • Capitalizes on Market Volatility: While volatility can be unsettling, fixed contributions allow you to turn it into an advantage. Down markets become opportunities to buy more assets at a discount, setting you up for greater gains when the market recovers.
  • Simplifies Your Investment Journey: No need to constantly check market news or predict the future. Set up your automatic contributions and let the power of compounding and long-term growth do the heavy lifting.
  • Ideal for Retirement Accounts: Fixed contributions are perfectly suited for retirement savings vehicles like 401(k)s, IRAs, and other investment accounts where consistent, long-term growth is the primary objective.


How Fixed Contributions Work (and Why They Work So Well):

Imagine investing $500 every month into a diversified portfolio.

  • Month 1: The market is high, and your $500 buys fewer shares.
  • Month 2: The market dips, and your $500 now buys more shares at a lower price.
  • Month 3: The market recovers, and your $500 buys a moderate number of shares.

Over time, you've acquired shares at various price points, averaging out your cost and mitigating the risk of investing a large sum at an unfortunate peak.



Ready to Make Consistency Your Ally?

Explore our resources on this page to understand the profound impact of Fixed Contributions on your long-term financial success. We provide valuable insights, historical data, and practical guidance to help you implement this fundamental investing strategy.