Dollar Cost Averaging
Radio Transcript, 60 seconds, for use during week
of September 10.
This is an Invest Wisely minute brought to you by Iowa State
Here’s a way to eliminate the guesswork of deciding when
to invest -- use dollar cost averaging. This provides
you with some protection from fluctuating markets. Using
this approach, you consistently invest small amounts over a long
period of time, for example $100 a month for 5 to 10 years.
No load mutual funds that don’t charge sales fees can
be a good choice for dollar cost averaging. This way you
avoid the commissions involved in routinely purchasing individual
The key to dollar cost averaging is consistent investing, no
matter what the market is doing.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.