Dollar-cost averaging
Second-guessing your investments is a pretty normal reaction. There’s always going to be that little voice in your head that’s raising questions. But questions about when to invest could be equally as disruptive.
Can you predict the perfect time for when to start?
Well, let us introduce you to dollar-cost averaging. When you commit to buying a fixed dollar amount of a specific investment, regardless of the share price at the time of the purchase, at regular intervals, that’s dollar-cost averaging, an important investment strategy.
This happens to your 401(k) every pay period. Sometimes you’ll buy into a fund at a low, sometimes you’ll buy at a high. This is worlds better than keeping cash.
We truly hope that this article has shed some light on how your 401(k) can help you save vast amounts of money for your retirement. Have we helped debunk some myths? Let us know in the comments below!
