Dollar-cost averaging is one of the simplest ways to stay consistent with investing—and many people are already doing it without realizing it.
If you contribute a set amount to your 401(k) each pay period, you’re using this strategy.
By investing the same amount at regular intervals, dollar-cost averaging can help:
• Keep investing consistent and automatic
• Remove some of the pressure of trying to time the market
• Allow you to buy more shares when prices are lower and fewer when prices are higher
It’s a straightforward approach that can help investors stay disciplined and focused on their long-term goals, even when markets are moving up and down.
Dollar-cost averaging does not ensure a profit or protect against loss. All investing involves risk, including the possible loss of principal.
🎥 Watch the video below for a brief explanation of how dollar-cost averaging works and its potential benefits.
