One final comment on Dollar Cost Averaging (DCA).
For DCA to work, you need to invest in quality assets.
I have mentioned this in prior DCA posts, but I want to emphasize it separately. (more…)
On 03/21/2011, In Investment Strategies, By Jordan Wilson
On 03/18/2011, In Investment Strategies, By Jordan Wilson
A third reason I think Dollar Cost Averaging (DCA) is a useful tool is that it is great for building a diversified portfolio over time.
That is not to say that one cannot build a diversified portfolio through lump sum investing. However, I believe that DCA can make the process easier and more consistent for investors, especially those with limited resources. (more…)
On 03/16/2011, In Investment Strategies, By Jordan Wilson
I like disciplined investing.
For me that means following a well-planned strategy, with minimal emotion.
Unfortunately, many investors are not disciplined. (more…)
On 03/11/2011, In Investment Strategies, By Jordan Wilson
We have seen that Dollar Cost Averaging (DCA) is a great tool for small investors.
Today we will look at a second advantage.
Namely that DCA promotes a consistent investment approach.
Something that greatly assists in achieving long-term investment success.
And something that the majority of investors lack in their investment activities. (more…)
On 03/07/2011, In Investment Strategies, By Jordan Wilson
Based on empirical data, lump sum investing is often the better approach over the long run.
So why do I like dollar cost averaging (DCA)?
There are a few reasons.
The first is that it is great for small investors. (more…)
On 03/03/2011, In Investment Strategies, By Jordan Wilson
I am a proponent of dollar cost averaging (DCA) for most long-term investors.
But there are certain advantages to lump sum investing versus DCA. In fact, many studies conclude the lump sum approach is the better way to invest.
But we will consider this issue as we go through the DCA debate.
For today, I want to try and explain the shortfalls of DCA so that you get a clear picture as to the two approaches.
When we have covered both sides, you can decide what is best for you. (more…)
On 03/01/2011, In Investment Strategies, By Jordan Wilson
Let us turn our attention on how you should invest.
That is, how you will accumulate assets to create a well-diversified portfolio.
Generally, you have two options when investing.
Either you make lump sum purchases or you engage in dollar cost averaging.
We will look at these today. (more…)
On 09/16/2010, In Mutual Funds, By Jordan Wilson
There are many excellent reasons to invest in mutual funds.
I believe open-ended mutual funds and exchange traded funds should be the cornerstone of most investors’ portfolios.
This is especially true for young investors. Those starting out, with limited wealth.
So what are the advantages of investing in mutual funds? (more…)
On 01/12/2010, In Investment Strategies, By Jordan Wilson
Investment strategies can be used to reduce the risk of getting caught in a bursting investment bubble. Here are a few practical strategies for consideration.
1. Diversify Your Investment Portfolio (more…)
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