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Financial Terms Everyone Should Know – Investment Portfolio & Dollar Cost Averaging

Charlie Marlow
8 months ago
1 min read

There are many types of investment vehicles to choose from when building your investment portfolio. Different investment types have different objectives, and when put together in the right mix, your portfolio is better poised to grow over the years.

One way to build your portfolio is by dollar cost averaging. This is done by investing the same amount regularly over a period of time. It allows you to buy more shares of a stock, or fund, when the price is lower and fewer shares when the price is higher, reducing the effect of volatility. Regularly investing a set percentage of your pay in an IRA, 401K, or the TSP is dollar cost averaging. Making one contribution annually over many years is also dollar cost averaging.

Find Out More with MyMilitarySavings.com and Finances!

Charlie Marlow

With over 22 years of active-duty Air Force experience in military pay and travel entitlements, Charlie Marlow brings his extensive knowledge of military finance with his passion to help others reach their financial goals through common sense financial practices. Charlie holds a BS in Business Finance from Liberty University, is an Accredited Financial Counselor®, a Dave Ramsey trained Financial Coach, and co-founder, administrator, and frequent contributor to the Facebook group Military Money Matters. He still supports the Air Force and DoD as a contractor budget analyst at the Pentagon. When not writing or helping others create a personal financial plan, you can find him cycling around the National Capitol Region or enjoying classic TV shows.

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