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Dollar Cost Averaging -- you may already be doing it

Radio Transcript, 60 seconds, for use during week of September 17.

This is an Invest Wisely minute brought to you by Iowa State University Extension.

You may have heard about dollar cost averaging as an investment strategy.  This is where you consistently invest small amounts over a long period of time, for example $100 a month for 5 to 10 years. 

If you are investing a regular amount in a 401(k) or other employer retirement plan via payroll deduction, you are already using dollar cost averaging.

However, you still need to monitor your investments.  Regularly, for example once a year, re-examine your portfolio to see if you still  have wise investments. 

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.

 
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Updated September 18, 2007