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Dollar Cost Averaging
Home »  Annuities » Investment Concepts » Informed Investor's Guide

 
Among its benefits, Dollar Cost Averaging can help control your risk of exposure.
  The Informed
Investor's Guide
Benefits of Dollar Cost Averaging

A DCA strategy may also help reduce your risk exposure. Instead of investing a lump sum all at once, and taking the risk that the market will decline, you can make a more gradual entrance into higher risk (and potentially higher return) markets. This approach may cause you to forfeit higher returns if the market rises from the time of your initial purchase, but it also helps cushion your exposure if the market falls.

Dollar cost averaging can be a good approach for people who want to accumulate an investment portfolio through a systematic and disciplined strategy.

It's important to realize that dollar cost averaging cannot eliminate the risks of investing. And it doesn't ensure you a profit or protect you against loss in declining markets. Before choosing this strategy, you need to consider your financial ability to continue to invest, even when prices are low. A variable annuity is one investment that typically allows you to take advantage of the benefits of dollar cost averaging. Within the guidelines of the product you choose, a DCA program can help you invest equal amounts regularly into your chosen allocation of investment options.

To learn more about how DCA works with a variable annuity, and whether it makes sense for you, talk to your investment professional.

     

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Copyright 2010 © Pacific Life and Annuity
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Dollar Cost Averaging
Home »  Annuities » Investment Concepts » Informed Investor's Guide

 
Among its benefits, Dollar Cost Averaging can help control your risk of exposure.
  The Informed
Investor's Guide
Benefits of Dollar Cost Averaging

A DCA strategy may also help reduce your risk exposure. Instead of investing a lump sum all at once, and taking the risk that the market will decline, you can make a more gradual entrance into higher risk (and potentially higher return) markets. This approach may cause you to forfeit higher returns if the market rises from the time of your initial purchase, but it also helps cushion your exposure if the market falls.

Dollar cost averaging can be a good approach for people who want to accumulate an investment portfolio through a systematic and disciplined strategy.

It's important to realize that dollar cost averaging cannot eliminate the risks of investing. And it doesn't ensure you a profit or protect you against loss in declining markets. Before choosing this strategy, you need to consider your financial ability to continue to invest, even when prices are low. A variable annuity is one investment that typically allows you to take advantage of the benefits of dollar cost averaging. Within the guidelines of the product you choose, a DCA program can help you invest equal amounts regularly into your chosen allocation of investment options.

To learn more about how DCA works with a variable annuity, and whether it makes sense for you, talk to your investment professional.

     

<<Previous


Copyright 2010 © Pacific Life and Annuity