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Dollar-Cost Average

When you're ready to invest your money, you'll want to use a technique called dollar-cost averaging. With dollar-cost averaging,you're investing a portion of your money every month, so you're actually averaging the price of whatever shares you're buying over time. It puts time, your money, and the market on your side. Since you're investing regularly, you hope to buy into your funds when the market is going down, so you don't have to pay so much for your shares.When this happens, you'll be paying less per share, so you'll be able to buy more shares. Thenwhen the market goes up again, you'll own more shares to profit from.When you begin paying yourself every month in this way-just as you do with a retirement plan-not only do you get more long-term bang for your buck, you also take some of the risk out of investing this money.By using the dollar-cost averaging technique, even if you're investing for the long run (ten years or more), in the end you'll be a winner.
  1. Enter the sum contributed each month in the monthly dollar contribution column (this should be the same sum every month).
  2. Enter the price per share every month (the price will vary each month).
The calculator will automatically track for you the number of shares you purchase each month, the total amount invested and number of shares bought.

  Monthly $ Contribution Price Per Share Number of Shares Brought
January
Feburary
March
April
May
June
July
August
September
October
November
December
Total Invested
Shares Bought