Since a set amount is being invested, more shares are bought when prices are lower and fewer shares are bought when prices are higher. Of course, dollar-cost averaging does not insure a profit, nor does it protect against a loss in declining markets. There is never a perfect time to invest. The important thing is to get started. This plan allows a part of earned income to be excluded from current taxation by putting aside money for retirement.
Every contribution is fully and immediately vested.
There are two tax advantages for the investor. This is because the money put into a TSA is taken out of income before, not after, it is taxed. This is a tremendous savings to AACS participants that is not available to the general public. Deferred taxes on earnings. Reduced taxable income.