Part 7/9:
Ultimately, the success of dollar cost averaging hinges on timing and risk. Investors can adhere to a passive strategy of regular contributions or adopt a more proactive approach by aiming for entries at lower market points. The guidance stresses allocating funds exclusively to well-diversified indices or mutual funds, steering clear of unstable single stocks.
Investing guru Warren Buffett encapsulates this sentiment, advising that those who prefer to spend minimal time managing investments should simply dollar cost average into index funds.