Basic Investment Concepts

Dollar-Cost Averaging

Dollar-cost averaging refers to a method of investing a fixed amount of money over time that reduces the risk of buying investments when prices are higher than average. The theory is that you buy fewer shares when the price per share is higher, and more shares when the price per share is lower.*

Investing in a 401(k) plan is a way to dollar-cost average, since the same contribution is deducted from your paycheck each pay period. Dollar-cost averaging is a common investment strategy, and your 401(k) plan lets you do it easily.

*Dollar-cost averaging cannot guarantee a profit or protect against a loss, and you should consider your financial ability to continue purchases through periods of low price levels.

Share Article:
Add to GooglePlus

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Heartland Bank and Heartland Planning Associates are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Heartland Planning Associates, and may also be employees of Heartland Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Heartland Bank and Heartland Planning Associates. Securities and insurance offered through LPL or its affiliates are:

Not Insured by FDIC of Any Other Government Agency Not Bank Guaranteed Not Bank Deposits or Obligations May Lose Value