Table: Dos and Don'ts of Dollar-Cost Averaging

DO

STICK WITH IT when markets tumble. Remind yourself that your dollars are buying more shares than before.

INVEST THE MOST your 401(k) plan allows.

INVEST WINDFALLS right away instead of dribbling money into the market.

DON'T

SWITCH YOUR 401(k) from stocks to bonds or a money-market fund whenever stocks fall.

INVEST IN VOLATILE STOCKS assuming that dollar-cost averaging will give you high returns without risk. It won't.

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