Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [dollar-cost-averaging]

Dollar-cost averaging (DCA) is an investment technique of buying a fixed dollar amount of an investment on a regular schedule, regardless of share price. The investor purchases more shares when prices are low and fewer shares when prices are high.

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Should a middle class person emulate a very wealthy investor for % of cash hold?

Warren Buffett is keeping $128 billion that can be deployed when stock market goes down. Should a middle class person hold little more of their investments as cash? Suppose if the person is responsible (no debt other than home) and with 3 month of…
Raj
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Does dollar cost averaging really work?

Does dollar cost averaging really work? If I have money available now, why shouldn't I invest it all at once? If the market's going up, wouldn't that be better?
anonymous
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Does dollar-cost averaging just means taking risk later?

I am investing in mutual funds and hence reading and trying to learn about it. I was reading this answer which says lump sum investment is far more efficient than DCA. Well, that does not surprise me. I am aware that lump-sum will outperform…
Aastik
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What should I do with the stock I own if I anticipate there will be a recession?

I want to preface this with saying I am not asking if there will be a recession because I recognize that this is impossible to answer. I am asking if I feel there will be a recession, what should I do with the stock I own? I recognize this answer…
Runeaway3
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Can you really always yield profit if you diversify and wait long enough?

It is a common assumption (and, as far as historical stock market data goes, also proven) that the stock market is always growing if you enlarge the time window long enough . In other words: The stock market always goes up in the long term. Is,…
Stefan Woehrer
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The mathematics of dollar cost averaging

Does anyone have a reference to a detailed mathematical analysis of the process of dollar cost averaging and whether it is really beneficial? This question isn't detailed enough.
DJClayworth
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Does it make sense to buy an index ETF (e.g. S&P 500) when the index is at an all-time high?

I have some money I intend to invest over the next 3-4 years. An important chunk of my portfolio would be invested in a stock market index ETF such as one representing the S&P 500. Unfortunately, the S&P 500 has hit all-time highs recently. I…
ggambetta
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Invest smaller lump sum vs investing (larger) monthly amount

I am receiving monthly compensation for having to move due to the demolition of my apartment building. I have two choices for the compensation: Take the compensation, at $755/month for the duration of the construction project for the new building.…
Paul Holden
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What is most time-efficient way to track portfolio asset allocation?

I've recently decided I wanted to track my investments over time so that I could accurately determine really cool financial things like: My actual asset allocation My actual rate of return over time I had a couple goals for doing this: If I know…
CrimsonX
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Dollar cost averaging - Should I still do it if I have a large pile of cash now?

I currently have a large pile of cash savings ($240,000) which I really should have been investing all this time, but the past is past and no point dwelling on it. I am currently 38 years old (2 kids. Wife who is also a high earner - $100,000), with…
cgg
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Is an index fund a good choice for a starter investment?

As an individual that is willing to consistently invest ~100-150 dollars monthly into an investment, willing to devote an average of an hour a day to educate himself / monitor investments, what kinds of investments should I consider? My risk…
Victor123
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Over how much time should I dollar-cost-average my bonus from cash into mutual funds?

I just cleared about $65k from my bonus. I don't want this sitting in cash, but at the same time prefer to move into stocks/bonds over time (e.g. I don't want to invest all $65k at one price, and risk doing it when the market is at a short-term…
Jer
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Dollar cost averaging vs buy low/sell high

It is often said that we should "Buy low, sell high". But we can't know when the market is at its low or high. Another phrase we hear is "dollar cost averaging" Consider: A long term young investor A long term middle age investor A person near…
mina
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Comparing IRA vs 401K's rate-of-return with dollar cost averaging

I have both an IRA in Vanguard and an old employer's 401k with Fidelity management. I would like to compare the performance between the two accounts over time, in order to determine if I should rollover the 401K into an IRA, possibly at Vanguard. I…
CrimsonX
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Dollar-cost averaging: How often should one use it? What criteria to use when choosing stocks to apply it to?

This may seem like a simplistic question, but I haven't found any great answers on it yet. How often should one use dollar-cost averaging? What criteria do you use when choosing a stock to apply this strategy to? Many people talk of dollar-cost…
theringostarrs
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