Dollar-Cost Averaging Limits Risk—And Returns!
Aug 11, 2016
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By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
Dollar-cost averaging can minimize the risks of market downturns for investors who are deeply risk-averse, but this investment approach is also likely to bring in lower overall returns—as this statistical comparison between dollar-cost averaging and lump-sum investing shows.