Dollar Cost Averaging: How It Works and the Pros and Cons

Dollar cost averaging can be a useful strategy for long-term investors to accumulate wealth over time. This video explains how dollar cost averaging works - investing a set amount at regular intervals.

We discuss the advantages like risk mitigation, building investor discipline, and lowering your average cost. We also cover disadvantages like potentially missing opportunities and lower returns during bull markets.

Overall, dollar cost averaging is one strategy that can help investors stick to a plan and invest for the long-term.

This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.