Before education savings accounts were introduced to the investment world, FAM’s George Chelius had the vision to show shareholders how dollar-cost averaging (investing a fixed dollar amount on a regular schedule) could work for them — and him. Anna's Story details the 18 years George saved regularly for his daughter’s college education.

Seven days after his daughter Anna was born on May 23, 1989, George opened a FAM Value Fund account for her with $2,000. Every month after her birth he added $100 to her account using loose change and dollar bills. And he did so for 18 years. Upon high school graduation in April 2007, Anna's account value was $89,394.79 — almost four times the investment amount! Anna's account was then used to help pay for college tuition.

When speaking with others, George underscores the point that regardless of whether it’s a Bull or Bear Market, the best time to invest is today. 

In August of 2008, Robert and Caddie Rankin opened an account for their newborn daughter Lucy following the same dollar-cost averaging plan George used for Anna. A few highlights:

• Lucy’s account was opened on 8/18/08 just before a major Bear Market. Anna’s was opened on 5/31/89 when the market was on an upward trend.
• Despite the severe drop in the stock market during the fourth quarter of 2008 through the beginning of 2009, after $3,700 was invested in Lucy’s account its value was $3,699. Anna’s account value was $3,564.62 after $3,700 was invested. These accounts are many years apart during different market cycles and are referenced for illustrative purposes only.
• Dollar-cost averaging accounts do fluctuate regardless of when they are started; yet after 18 years, George's capital contribution of $23,600 into Anna’s account had grown to $89,394.79.

View Lucy's Account as of Age 2

There is no assurance that any investment strategy will be successful in achieving investment objectives. Past performance does not guarantee future results.