What is Dollar Cost Averaging?Submitted by Rob Slezak Capital Choice on July 25th, 2018
Let’s say you agree to help a friend and obligate yourself to invest $100/Mo. for 6 Months to buy pigs from him.
NICE FRIEND! You just made $800.
Dollar cost averaging includes continuous investing regardless of price levels. Although its goal is to lower the investor's average portfolio cost, it does not ensure a profit and does not protect against loss.
The examples in this article are hypothetical and for illustrative purposes only. It does not represent the return on any actual investment and cannot be guaranteed. Moreover, the examples do not take into account fees and taxes, which would have lowered the final results. Speak with a financial professional about how these examples might relate to your own investing circumstances.