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!

Have a question? Submit a message below:
Contact us form — blog posts
Sending

Related Posts

0 Comments

0 Comments

Submit a Comment

Your email address will not be published.

DISCLOSURES
Total Compensation Group Investment Advisory Services LP (“TCG Advisors, LP”) is a registered investment advisor regulated by the U.S. Securities and Exchange Commission (SEC) subject to the Rules and Regulations of the Investment Advisor Act of 1940, and is a part of TCG Group Holdings, LLP. Registration with the U.S. Securities and Exchange Commission does not imply a certain level of skill or training. We are located in Austin, Texas. A copy of our Form ADV Part 2 is available upon request.

This website is not authorized for use as an offer of sale or a solicitation of an offer to purchase investments. This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, or as an offer to provide advisory or other services in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

Past performance may not be indicative of any future results. No current or prospective client should assume that the future performance of any investment or investment strategy referenced directly or indirectly in this brochure will perform in the same manner in the future. Different types of investments and investment strategies involve varying degrees of risk—all investing involves risk—and may experience positive or negative growth. Nothing in this brochure should be construed as guaranteeing any investment performance.

This website may contain forward-looking statements and projections that are based on our current beliefs and assumptions on information currently available that we believe to be reasonable; however, such statements necessarily involve risks, uncertainties, and assumptions, and prospective investors may not put undue reliance on any of these statements.