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Lower commissions (1.6%) but less frequent dripping, (quarterly).

OR

Higher commissions (2.5%)yet more frequent dripping, (every other month).


Those are my two options and I am not quite sure which way to go. Have you pretty much gone out of "DCA Range" when you invest only 4 times a year? That seems like such a small amount and might not entirely reap benefits of DCA, would higher commissions be worth it to invest more frequently. I am 22 and this is going in an IRA.


Well, if you plan on dripping into a company for 20 years, you'd still be making 80 purchases (vs. 120 for every other month). That still sounds like dollar cost averaging to me... And after 20 years, you'll only be 42.

Also, look at it this way, you're 22 now. As you get older, you'll have more income, and you can consider moving to more frequent contributions... or adding other stocks.

Actually, one of the things that I wish Buy and hold's ezvest would let you do is choose which months to do the quarterly ez-vest in... That way you could set it up to say, put $500 in one stock in Jan, Apr, July, and October, $500 in a second in Feb, May, August, and November, and a third in March, June, September, and December.

-Brian




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