Dollar-Cost Averaging is a simple yet effective strategy for most. How does it work? By putting a regular sum into an investment portfolio (for e.g. monthly) rather than a lump sum, the price paid for a share or unit trust is averaged out. This means that more shares are bought when prices are low and fewer when prices are high.
Over the long run, if the stock is making good progress, yr portfolio is logically to make a profit. BUT the clause is that if the stock is sky-diving downwards and showing no sign of recovery, this strategy will not work. This seemed to contradict the market cycle strategy which I will post in the latter stage? No, not really. The thing is that your long-term investment portfolio is not there to stay unchanged forever. Your financial planner must be able to monitor its performance and readjust the portfolio on a regular basis or when the needs arise. A balance of static and dynamic change is necessary to make sure your financial freedom path is on the right track.
Are you now on the right track? When was the last time your insurance agent service you?
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