Sunday, June 7, 2015

A Story About 3 Neighbors and Dollar Cost Averaging

To become a successful investor it is important to weather all of the fluctuations in the market and be discipline enough to withstand those temptations to sell when the market is dropping and to get back in the market when the market is booming. I mean you wouldn't want to buy high and sell low would you? That would go against all of the sage investment advice we were ever given all our lives.

By using Dollar Cost Averaging and simply investing a fixed amount of money at regular intervals over a period of time, you can really increase your odds of success by using of all of the ups and downs in the market to your advantage. Many of you are already unknowingly using this concept. If you are contributing to a 401(k) or 403(b) at work, you are participating in Dollar Cost Averaging.

In the following video I will visually demonstrate how Dollar Cost Averaging works by comparing the investment decisions of three different neighbors.

I hope you enjoy and please leave me your comments below!

If you cannot view the video please click on this link

I'm so excited to share this information with you. If you have enjoyed the information or feel that it would benefit someone else, please share it. If you have any comments, please post them below, otherwise, feel free to contact me.
Post a Comment