- July 16, 2022
- Posted by: Stratford Team
- Category: Economy
Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.
If you’re already contributing money to a 401(k) retirement account, you may not have realized it, but you’re practicing a popular investment strategy known as dollar-cost averaging.
Simply put, this approach means you’re investing fixed, equal amounts on a regular basis, say monthly or bi-weekly, rather than investing one lump sum of cash all at once.
With a defined 401(k) contribution plan, for example, you’re investing as you earn, regularly taking money from each paycheck throughout the year and putting it into the market. Dollar-cost averaging could also look like if you decide to invest $5,000 of your savings by splitting that cash into five parts, where $1,000 is invested each month for five…
