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Dollar cost averaging question

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  • Dollar cost averaging question

    How often do you dollar cost average? Once a week? Twice a month? Once a month? Now that most brokerages do not charge trading fees, is it better to dollar cost average more frequently?

  • #2
    I thought I saw someone do a real analysis years ago...the more time in the market the better. Ive been moving money in twice a month. It makes me feel better buying more often, but in reality, it doesnt have much of an impact.

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    • #3
      i do twice a month with my 401K.
      Once a month with my taxable account.
      And almost daily if you count the dividends that I receive.

      Brian

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      • #4
        My 401k contributions go in every 2 weeks when I get paid.
        I make a monthly contribution to our taxable accounts.

        Over the long term, I don't think more frequent purchases would make a significant difference.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
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        • #5
          Over the recent years with Roths (and taxables initially starting out) I've been doing more lump sum investing with contributing earlier in the year. Moving forward I'm trying to do 2-4 purchases each month within taxables, and plan to do the same with Roths next year.
          "I'd buy that for a dollar!"

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          • #6
            i don't want to do DCA. I can't stand having to move money. But I might have to as well. I usually do in chunks when our savings account hits too high I transfer a big chunk to the taxable and i was just buying in chunks
            LivingAlmostLarge Blog

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