Dollar cost averaging (DCA) is a strategy where investors regularly invest a fixed amount into the stock market, regardless of price fluctuations. This approach offers several benefits. First, it reduces the risk of making poorly timed investments by spreading purchases over time, smoothing out the impact of market volatility. Second, it promotes disciplined investing, encouraging consistency without the stress of trying to "time the market." Third, DCA allows investors to buy more shares when prices are low and fewer when prices are high, potentially lowering the average cost per share. Over time, this can enhance returns, making DCA a simple, effective strategy for long-term wealth building, especially for beginners.
Reach out to the financial advisors at Kerr Wealth Advisors in Blue Bell, PA, to leverage dollar cost averaging and other investing strategies to help secure your financial future.
H. Brad Kerr IV, Vice President/ Wealth Management, Financial Advisor
215.619.3926/ bkerr4@janney.com
1767 Sentry Parkway West, Suite 110, Blue Bell, PA 19422
Disclaimer: Dollar cost averaging, asset allocation, and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee that the investment objective will be met.
