Dollar Cost Averaging
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
Pay
Yourself
First
The
Rule
of 72
The Power
of Compound
Interest
