As we continue our investment definitions series, we come to Automatic Investment Plans (AIP). Just like it sounds, this type of investment plan works on the basis of using automatic withdrawals to invest in a retirement account, mutual funds or stocks. One of the more common places that an AIP occurs is through the workplace, where contributing to a 401(k) offered by your employer can be easily accomplished through a paycheck deduction. Automatic Investment Plans can also occur in other situations, though, so let's look a little more closely at this new investment term.
Recent comments