When Dollar Cost Averaging Works And When It Doesn’t

When Dollar Cost Averaging Works And When It Doesn’t

July 21, 2026 · 7 min

About this episode

This episode discusses the effectiveness of dollar-cost averaging compared to lump-sum investing in managing stock market volatility.

Dollar-cost averaging is a simple but effective strategy for addressing stock market volatility. Instead of trying to time the market with a large lump-sum investment, it invests smaller amounts at regular intervals. Sometimes, dollar-cost averaging works better than lump-sum investing. Sometimes lump-sum investing works better. Learn when each option works best.

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