In this blog, we uncover all you need to know about dollar-cost averaging, what it is and how it could help you gain more of life’s most valuable asset – time.
Dollar-cost averaging sounds quite technical doesn’t it? As with most things finance related it’s another jargony term for quite a simple investment strategy that involves making small, regular, contributions to your investments.
The sophistication doesn’t come from the strategy itself, but how it could help you gain more time, sleep and peace of mind. Whether you’re new to investing or a professional, the decision of when to invest your money can be a challenging one.
Should you invest everything at once or dip your toes in by investing smaller amounts over time? Often we get caught on the hamster wheel trying to work out which is better. This procrastination can paralyse us from making any decision – which is the worst decision of all.
The truth is, both strategies have their own merits and limitations, but often our choice of one over the other is linked to our desire to reduce our sense of short-term regret.
So, what is the best approach?