In this episode, we break down Dollar Cost Averaging (DCA), a foundational investment strategy coined by Benjamin Graham in his 1949 book, The Intelligent Investor. We explain how investing a fixed amount of money at regular intervals—regardless of share price—allows investors to purchase more shares when the market is low and fewer when it is high. You will learn how this approach aims to lower the average cost per share over time compared to purchasing a fixed number of shares, effectively smoothing out market volatility,.

We also tackle the widespread confusion between standard DCA and "systematic investment plans" used for windfalls, such as inheritances or insurance payouts. While Vanguard’s historical modeling suggests that investing a lump sum immediately is often mathematically superior to delaying it, we discuss why spread ...