This is

Episode 1133,

my failed attempt to understand dollar cost averaging

by Philip Taylor of P.T Money.

And I'm Dan, I'm your host

and this is where I read to you from some of the very best blogs on personal finance.

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For now, let's get right to it as we continue optimizing your life.

My failed attempt to understand dollar cost averaging by Philip Taylor of P.T money.com.

Are you into dollar cost averaging?

Chances are you may already be doing it,

especially if you contribute regularly to a retirement account at your workplace.

In this post I'll attempt to tackle this basic tenet of investing.

I'm not a pro at this material, but I've researched it and hopefully I can give you some every man perspective.

Dollar cost averaging is the act of investing your money on a set schedule with a fixed amount or percentage,

regardless of market conditions.

For instance, you decide that you're going to invest in a stock, mutual fund, or other investment each month with a contribution of $100 until you reach some goal or predetermined date.

Using this method, your $100 buys more or less depending on the current value of your

investment.

The way I see it, it's not so much an intentional strategy as it is a resulting strategy.

Most people don't intend to participate in this strategy, they don't seek it out per se,

they just start investing and it's what naturally happens.

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