Education
Dollar Cost Averaging
Dollar cost averaging is the systematic investment of a fixed-dollar amount at regular time intervals. 1 This method may help investors take the ups and downs of the market and "smooth them out." Instead of trying to "time" the highs and lows of the market — a daunting task for even the most educated professionals — you are investing the same amount of money at regular intervals, allowing you to take advantage of market fluctuations.
Is now the right time to invest in the market? Should you wait until the market declines? If you are not comfortable making these kind of decisions, dollar cost averaging enables you to invest in equal increments over a period of time. For example, you could invest $100 every week, $500 a month, or $1,000 a month.
While dollar cost averaging may simplify the questions "How much?" and "How often?" to invest, you must first answer the question, "Where should I invest?" Vehicles such as mutual funds and variable life and annuity products offer you flexibility and convenience 2. Your regular investments can be made by simply writing a check or you can take advantage of the convenience of Check-O-Matic. With this method, payments are automatically withdrawn from your bank savings or checking account to purchase shares on a regular basis.3
Contact your NYLIFE Securities Registered Representative or local General Office today.
1Dollar cost averaging does not assure a profit or protect against a loss in declining markets. To be effective, there must be a continuous investment regardless of fluctuating price levels. Investors should consider their financial ability to continue investing in periods of declining prices.
2Please read the prospectus carefully, which contains more complete information, including all charges and expenses, before investing or sending money.
3Investors are reminded of their responsibility to maintain sufficient balances to accommodate each regular withdrawal.
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