DCA All Day

Which is better? $12,000 lump sum invested all at once OR $100/mo. invested across 120 months?

Ibbotson Associates determined that if someone invested $12,000 in January 1929, by 1939 they only would have had $7,223 left.

If instead, that person invested $100 per month during that same time period (one of the WORST bear markets of all time), they would have had $15,571!

There’s a lot of chatter right now about the stock market being up, down & sideways.

It’s hard to keep your head straight with all of the noise. It can be downright nerve-wracking if you’re trying to time a market “bottom” or worried about missing out on rocket-like growth into a new bull market.

Here’s where a little something known as DCA can give you both peace of mind & an edge over frantic-minded investors.

This practice of investing steadily over time is called “Dollar Cost Averaging” (DCA) or as Benjamin Graham, the author of ‘The Intelligent Investor’, calls it:

“Filling in the Potholes”

Here’s how to make it work for you:

1. Determine what your financial goals are

2. Determine how much you can afford to invest on a regular basis

3. Set up a schedule to ensure you contribute that $$$ amount consistently in a diversified portfolio

4. Consider working with a financial advisor to help you reach those goals with risk tolerable for your unique financial situation & goals

5. AND STICK TO IT LONG-TERM