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<p>[QUOTE="Cloudsweeper99, post: 1154581, member: 3011"]I read an article years ago, "Twenty Five Ways to Lose Money by Dollar Cost Averaging." I wish I had saved it. But basically it is a myth that this technique will reduce risk. And it basically outperforms a lump sum investment in only one specific case - where the price is much lower than the starting point for an extended period of time during the program. In all other cases, it increases the average cost and risk. And if the price dip occurs near the end of the program, the losses can be enormous. Your financial planner probably won't point this out, but you can prove it to yourself by playing with a spreadsheet.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 1154581, member: 3011"]I read an article years ago, "Twenty Five Ways to Lose Money by Dollar Cost Averaging." I wish I had saved it. But basically it is a myth that this technique will reduce risk. And it basically outperforms a lump sum investment in only one specific case - where the price is much lower than the starting point for an extended period of time during the program. In all other cases, it increases the average cost and risk. And if the price dip occurs near the end of the program, the losses can be enormous. Your financial planner probably won't point this out, but you can prove it to yourself by playing with a spreadsheet.[/QUOTE]
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