fb-pixel
Select Page

What is Dollar Cost Averaging?

March 23, 2020
Dollar cost averaging is an investment strategy that can be used to alleviate risk. Investors invest a fixed dollar amount into an investment at a set interval to spread out the purchase over time. The investment typically continues each and every month over a long period of time, regardless of market volatility.
When the price of a given investment rises, investors purchase fewer shares as their funds do not reach as far. When the price of a given investment declines, investors are able to purchase more shares and receive more bang for their buck.
Investors benefit largely during bear markets when they can purchase an investment at a low point. Over the long term investors lower the risk of one large purchase at the peak of an investment.
Remember all investing involves risk. Schedule an appointment to speak with one of our financial advisors to determine if Dollar Cost Averaging is right for you!

Find an advisor

You don’t have to figure things out on your own. Click below to get matched with an advisor.

Get started →

Retirement Readiness Analysis

Schedule a meeting with a Retirement Plan Specialist find out your retirement income gap and when you can afford to retire.

Schedule now →

A Better Small Business 401(k)

Don’t let your employees pay high fees and get stuck with bad investments. Request a no-cost analysis today!

Request a demo →

Connect with Us

Related Posts

0 Comments

0 Comments

Submit a Comment

Your email address will not be published.

Share This