dollar-cost averaging

The Pros and Cons of Dollar-Cost Averaging

Posted 42 weeks 5 days ago by Kate Luther

Personal Finance, Investment

Stock Market - Photo Courtesy of Stock.Xchang
Having balanced your budget and analyzed your risk, you're now ready to start tackling that "investing" entry on your list of new year's resolutions. But where do you start? When should you buy? How can you get the best return on your investment?If you've never heard of dollar-cost averaging, you have now and if you're wondering how it all works, then you've come to the right place.

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Dollar-Cost Averaging: my path to becoming a not-so-nervous investor

Posted 1 year 10 weeks ago by Julie Rains

Investment

Boy getting ready to go down a slide
Can the concept of dollar-cost averaging (DCA) help prevent nervousness in investors? (I think so). But what is DCA and is it a viable investment strategy? If you are a seasoned investor with a large lump sum from a 401(k) rollover, property sale, inheritance, or other source, you are likely to think of DCA as second-rate or lower-performing strategy, which it in fact may be. But if you are a beginning or less experienced investor who has just a bit to invest each month ($25 to $100), then the DCA concept may help you feel comfortable in starting to invest and let you relax during market fluctuations.

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