Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Lower commissions (1.6%) but less frequent dripping, (quarterly).


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.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.