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What Is Dollar-Cost Averaging?

When I work with clients who are still in their working years, I encourage them to continue investing through thick and thin, in every market cycle. That’s a pretty easy process for those who can schedule automatic paycheck withdrawals into an employer-sponsored account, such as a 401(k).

That’s known as dollar-cost averaging. It’s a straightforward investment strategy whereby an account owner consistently invests a fixed amount of money at regular intervals, regardless of the current market conditions.

Here’s what you need to know about dollar-cost averaging and why many investors choose it as a strategy to meet their long-term goals…

This post originally appeared at U.S. News & World Report.