WEBVTT

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People often believe
that it's safer

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to invest your money in
a rising market instead

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of a fluctuating market.

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However, that may not
always be the case.

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The power of
dollar-cost averaging

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encourages you to buy more
investment shares when

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the market share price is
low and fewer shares when

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the price is high.

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This can result in paying a
lower average cost per share

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over time.

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In this example,
investor A and investor B

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both invested $600
into the market

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in $100 monthly increments.

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Investor A purchased
all of his shares

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as the market
consistently soared.

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Right after investor B started
buying his shares, however,

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the market fell
and then recovered

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to where it was at the start
of the investment period.

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By taking advantage of
the fluctuating market

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to purchase shares
at a lower price,

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investor B was able to buy
more shares than investor A did

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in a rising market.

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After six months,
investor A's $600

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investment yielded
approximately 42 shares

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at an average price
of $14.19 per share.

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Investor B's investment
resulted in 126 shares,

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three times as
much as investor A,

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at a lower average price
of only $4.76 per share.

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That's the power of
dollar-cost averaging.

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