Why Dollar Cost Averaging is the BEST Way to Build Wealth

Surprising benefits of Dollar Cost Averaging! Explore insightful graphs that unveil how to maximize your returns and stay in control of your emotions during market ups and downs. This video will empower you with the tools to steadily build wealth with confidence, helping you avoid common mistakes. Learn why investors should use Dollar Cost Averaging to create real wealth!

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How To Invest in the S&P 500

Understanding Your Risk Tolerance

Lump-Sum Investing vs Dollar Cost Averaging

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#investing
#dca
#dollarcostaveraging

Timestamps:
0:00 Intro
0:27 3 Investment Scenarios
7:30 Important Market Graphs
10:06 Key Concepts
12:53 5 Important Tips
15:53 Conclusion

Disclaimer: I am not a financial advisor. This video, and the ideas presented in it, are for educational and entertainment purposes only and should not be construed as financial or legal advice. It is imperative that you conduct your own research and, if needed, get professional advice suited to your unique circumstances. I am merely sharing my passion for personal finance, stock market investing, other types of investing, and overall money management to help people achieve their financial goals.

[virajfaria]

Wow, this video really breaks down the power of dollar-cost averaging! It's incredible how this strategy helps take the emotion out of investing and allows us to capitalize on market fluctuations. The steady, disciplined approach not only reduces risk but also takes advantage of those market dips that cause stress.
Here's to growing wealth over time! 🌱🚀

[MikesFinancialEdge]

Remember that when the market is declining or experiencing a challenging year, we don't need to feel pressured to come up with short-term solutions. Take a look at this video and let me know your thoughts.

[DaveGillett-qu]

Great video to watch on a regular basis to remain calm during the market corrections,

[Citygirlinthesticks]

Mike, you demonstrated that so well! This information is so useful when everyone is freaking out in a downturn, just seeing this takes all that fear mongering away for me!

[hortensiasoto]

"These bad times are really your best times." I am pretty sure that is a zen quote of some sort. The specific examples provide great insight into what happens long term so that one doesn't zoom in on a particular instance. Thanks for sharing all your knowledge that helps us stay calm and see those down turns as good shopping days.

[xi]

Thanks Mike! This is the exact information I’ve been looking for. Some videos on YouTube say lump sum is better than DCA, but they only give the example for the up trend market. I wanted to know what if market goes down and then went up, but didn’t return the price one started investing. The three scenarios you illustrated answered my questions. I have some money saved, I wanted to invest in the stock market to beat the inflation, but stock market is at all time high, which makes me nervous to put all money in the index ETF in lump sum.

[CindyHua-xi]

Thank you for the video, very powerful.

[DaveGillett-qu]

Great content! People need to watch this!

[SolutionBuffet]

As always, really great video. Thanks! Two follow up questions if I may:

1- For a person having a little extra cash laying around and already doing dollar cost averaging, do you recommend investing the extra cash in times of market downturn in addition to the automatic monthly investment? It might sound like a no-brainer but it technicality defeats the purpose of DCA, which is not caring what the market is doing, which in turn, keeps emotions out of the picture.

2- What are your thoughts on dollar cost averaging over all or most individual sectors of the market using low cost ETFs instead of S&P500? The idea is to put the same dollar amount in each sector every month. Right now the Information technology sector of the index is the heaviest (or most expensive) while some other sectors may not do very well. So, in this way, more shares of the cheaper sectors of the market will be purchased instead of following the current composition of the index. Could it yield an edge?

[jjjjd]

Hi, thanks for the video. Is it possible to make a DCA scenario with much gain and a huge crash just before the end of investment period (like retirement)? How does the portfolio than looks like?
Thanks in advance and regards

[gothops]

Mike, is it just as effective to DCA every 6 weeks over a 30 year period instead of every month?

[hellonihaocomoestas]

What do i do if i have a payment period while DCA? Say i invest 200 into an index every week, but miss two or 3 weeks due to emergencies throughout the year.

[herewego..]

Hi Sir, I want to invest $500 monthly in VOO using the DCA strategy, but my local broker (Singapore) allows only full share purchases, which cost $410 each at the current price. I'm left with $90, not enough for the second share. Any alternatives to invest $500 monthly without buying two full shares? Like you mentioned in the video.. no matter what the current price of a stock, you only invest 500 bucks each time on a regular basis, , and I hope I have asked my question correctly.. I am a newbie and just started investing in early 2023 😊

[herewego..]

Hi Mike, my online broker recently just enable fractional share trading so glad that I can finally doing DCA, but they ask me to sign a page of terms and conditions before using, it also read that this fractional feature is unlike other whole share trading, because it's on principal capacity, and potential loss to clients and gains to the broker, (that's what the page contents listed)and the fractional shares you bought cannot be withdrawn or transferred to other broker, can you help me to understand more about this? Any risks associated with this broker on principal capacity or should I avoid it, find other broker .. thanks a lot!

[Fjhaha]

Common sense ppl like mike r gem in sewer alike YouTube…😂😂😂

[DeathScouter]

If you're asking if you should DCA on a regular basis (like how people fund their 401K) then the answer is YES!! Invest as soon as you have money (each payday). TIME IN the market is always more beneficial than trying to TIME the market.
However, if you HAVE A LUMP SUM and you're wondering HOW to put it into the market, then DCA is an absolutely horrible idea.

[Will-uegb]

Can you make a video on Michael Burry’s recent $1.6B bet on the market crashing? I knowfor long term investors, you shouldn’t worry. Just want to see your thoughts! Love the videos!