[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:dollar-cost-averaging":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fdollar-cost-averaging.md","Dollar-Cost Averaging",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-dollar-cost-averaging","Understanding Dollar-Cost Averaging",[16,17,18],"p",{},"With dollar-cost averaging, you buy more shares when prices are low and fewer when they are high. It removes the pressure of trying to time the market.",[16,20,21],{},"Research suggests that investing a lump sum right away has historically beaten spreading it out more often than not, because markets tend to rise. Dollar-cost averaging's main benefit is behavioral: it builds a steady habit.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"personal-finance","Investing a fixed amount at regular intervals, regardless of price.","md",[],{},true,"\u002Fterms\u002Fdollar-cost-averaging",[35,36,37],"index-fund","volatility","compound-interest",{"title":6,"description":28},"terms\u002Fdollar-cost-averaging",[41,42,43],"Dollar-cost averaging means investing a fixed amount on a schedule.","It avoids trying to time the market.","Automatic payroll contributions are a natural example.","MqTgkvm8-FUD7r3WAhUoh10_sm5Jxn2l0fqmT3yXf-c",[46,50,54],{"title":47,"description":48,"path":49},"Compound Interest","Interest earned on both the original principal and on interest already earned.","\u002Fterms\u002Fcompound-interest",{"title":51,"description":52,"path":53},"Index Fund","A fund built to match the performance of a market index.","\u002Fterms\u002Findex-fund",{"title":55,"description":56,"path":57},"Volatility","How widely an asset's price swings over time.","\u002Fterms\u002Fvolatility",1793374005003]