How to Use Dollar-Cost Averaging

What should you do when you have a large chunk of money to invest? Deciding whether to invest it immediately or wait for what you think is the right time can be a difficult decision.

Markets go up more often than they go down, so in theory you should invest your money as soon as possible in order to “put it to work” and have the best chance of maximizing your wealth. But markets certainly don’t always go up, so investing a lot of money at once can be nerve-wracking. Markets could fall shortly after you make your investment, and you could easily regret your decision.

Topics: Blog Dollar-Cost Averaging