This video explores the key differences between dollar cost averaging and lump sum investing to help viewers make smarter investment decisions. Dollar cost averaging involves investing smaller ...

Dollar-cost averaging involves investing a fixed amount at regular intervals—say, $1,000 per month over 12 months. This approach reduces the risk of investing everything at a market peak.

Dollar-cost averaging removes the guesswork from investing by automatically purchasing more shares when prices are low and fewer when they're high, helping you steadily grow your nest egg over time.

For the additional $37,000, she dollar cost averages $3,083 the first day of every month, allocated 80% into a total stock index fund and 20% into a municipal bond fund. Lump sum investing ...

So your average cost base is only $65, $67.” This kind of investing, he says, doesn’t require constant attention. “It’s that ‘set it and forget it,’” Hood said.