Dollar Cost Averaging

Maintain a long-term view.

Dollar-cost averaging is when you invest a certain fixed amount each month, regardless of what's happening in the stock market.

Dollar-cost averaging can't assure a profit or protect against loss, but it does show how a systematic investing plan, sustained over a period of time, has the potential to pay off, relieving your worries about whether the market is up, or down.

Experts say market "timing" is a bad way to invest. The key is to maintain a long-term view and stay focused on your goals.

This material is for general educational purposes and is not intended to be a recommendation to buy, sell or hold a security or to adopt a particular investment strategy. Dollar-cost averaging is a technique for lowering average cost per share over time. Dollar-cost averaging cannot assure a profit or protect against loss in declining markets. Investors should consider their ability to continue to invest in periods of low-price levels. These values are hypothetical and not intended to reflect any specific market period.

Want to learn More about How Money Works™ Concepts? Check these out.

The High Cost of Waiting

The High
Cost of
Waiting

Pay Yourself First

Pay
Yourself
First

The Rule of 72

The
Rule
of 72

The Power of Compound Interest

The Power
of Compound
Interest