Dollar Cost Averaging 

Why Dollar Cost Average...

Instead of investing the bulk of the money upfront, investors can choose to invest a smaller amount of money periodically. Dollar cost average refers to the process of systematically investing a smaller amount of money (instead of investing a lump sum) periodically. For example, instead of investing $100,000 upfront all at once, investors can invest $1000 every month.

Because dollar-cost-averaging involves continuous investment regardless of fluctuating price levels, you should carefully consider your financial ability to continue investing through periods of low prices.

Option available with Annuities and also Variable Life Insurance:

Variable annuities come with dollar-cost-averaging accounts to help walk investors into the market while the money that awaits transfer earns a more competitive rate than other cash equivalents.

Variable annuity products have Dollar Cost Average (DCA) rates as high as 10% for 6 months and 6% for one year.

As applicable, the interest rate earned will be approximately 25% of the rate quoted for a 6-month rate and 50% of the rate quoted for a 12-month rate.

• Any 40 to 60 year old investors have become overly allocated in cash due to the recent fears of equity investing yet still have long-term growth goals and objectives.

  These investors have maxed out their 401(k) plans and other retirement vehicles and are still looking for tax-deferred long-term growth for retirement.

• Asset class allocations may have become misaligned with their original investment objective. Over-allocation to cash over the long-term will not yield the returns they require to meet their stated goals.