Definition of "Dollar cost averaging"

Cheree Graham real estate agent

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Cheree Grahamelite badge icon

Keller Williams Realty at The Parks

Strategy of regularly investing a fixed amount of dollars into a variable dollar annuity over a substantial period of time regardless of the accumulation unit value. The investment will be made when the unit value is low, high, or moderate, permitting the average cost per unit to be significantly below the high point in the market. Thus, the investor will not be confronted with "Buying High" and "Selling Low."

 

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