Dollar Cost Averaging is near the top.
Of the all-time financial media commandments.
Along with Asset Allocation, Rebalancing, and Diversification.
When the stock market has stalled or is falling.
Don’t make the Dollar Cost Averaging mistake.
Before you even think about Dollar Cost Averaging.
Ask yourself the following question first:
Would you still buy the same 401(k) mutual fund you own today?
The underlying stocks in any 401(k) mutual fund are the key.
If your 401(k) mutual funds own the wrong stocks.
These mutual funds should not get more of your 401(k) contributions.
Even at lower “buy the dip” prices.
Instead, your 401(k) mutual funds are ranked.
By annual costs and investment performance.
Lately, how well have they held up during the stock market decline?
Dollar Cost Averaging is not a reasonable 401(k) investment management strategy.
So, ask the hard questions of your current 401(k) mutual funds.
And own the ones with the highest ranking.
Want to know where your 401(k) mutual funds rank in a stock market decline?
P.S. Cheaper is only better with the best 401(k) mutual funds available to you.
