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This usually comes up because people procrastinate investing and end up with a large amount of money sitting idle. They have anxiety about how to put it into th
by embwbam 3y ago
This usually comes up because people procrastinate investing and end up with a large amount of money sitting idle. They have anxiety about how to put it into the markets.
Saving with each paycheck isn’t dollar cost averaging. It’s lump sum. DCA would be something like putting 1/4 of your total savings every week.
Anyway, in my experience this situation comes up a lot due to the above
- AlbertCory 3y agoHow is putting 10% of your salary each paycheck NOT dollar-cost averaging? Let's assume you're just buying a broad-based index fund. The same amount of money buys fewer shares when the index is up, and more when it's down. That is the very definition of DCA.