In Defense of Dollar-Cost Averaging
Although lump-sum investors may amass more over time, DCA might be more realistic from a logistical and psychological standpoint.
Note: This article is part of Morningstar's November 2013 Investor Starter Kit special report. An earlier version of this article appeared Feb. 11, 2013.
Dollar-cost-averaging--the notion of moving the money into securities slowly over time rather than all at once--is close to dogma in financial-planning circles.