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!