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.
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.