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TRUMP UNIVERSITY WEALTH BUILDING 101

investment vehicle, the stock market has consistently produced compounded
returns ranging from 10 percent to 12 percent, on average. Very few invest-
ments offer the benefits (appreciation and income) associated with ownership

of stock over the long term. For the beginner, investing in the stock market
offers the easiest way to invest for long-term growth. For further distinctions,
read the next step.

Starting Your Automatic Investment Plan

There are two simple steps to starting your automatic investment plan:

1. Decide on your level of expertise.

2. Contact a broker or mutual fund company.

Most people will fall into one of five categories of investor “comfort,”

based on their experience and knowledge. Decide which of the following best
suits you:

1. You want to invest in a mutual fund, but your budget doesn’t provide
the minimum entry and monthly contribution amounts required.
Save the start-up amount in your bank account and commit to regular
contribution amounts until you can activate and fund an AIP of your
choice. To research performance and fees, you’ll find resources in

print (newspapers and investment magazines) and online about apply-
ing directly through fund brokers, and thus avoid brokerage fees. Sites
such as morningstar.com , bloomberg.com , and others offer these serv-
ices. If you can afford to buy this book, you can afford at least $100 a
month to guarantee your financial future. No excuses! Take action

now. Make your decision, and make that one phone call. There are
companies that will let you start for as little as $50 per month if you
invest in an IRA. American Century offers solid funds for this budget.
2. You want to invest wisely, but don’t want to take the time to select
individual stocks and investments, and prefer to have fund managers
make investing decisions for you. I like Vanguard’s Index 500 Fund,
which has consistently outperformed over two-thirds of all managed
funds over most annual periods in the past 40 years. For 10-year
periods, the fund has outperformed more than 90 percent of the fund
managers.
3. You are an experienced investor who wants to pick your own stocks
and manage your monthly investment decisions, but with a broker’s

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