Glossary
Dollar-Cost Averaging
Dollar-cost averaging (DCA) is investing a fixed amount at regular intervals regardless of market conditions. You automatically buy more shares when prices are low and fewer when prices are high.
Why it matters
DCA removes the emotional paralysis of trying to time the market. Research shows that even investing at market peaks with DCA produces solid long-term returns, because the consistency matters more than the timing. It turns investing from a stressful decision into an automated habit.
Example
Investing $500/month into an S&P 500 index fund for 10 years totals $60,000 in contributions but could grow to ~$86,000 at a 7% average annual return.
How Ray helps
Ray tracks your recurring investment contributions and can show the pattern over time. Ask to see if you're sticking to your DCA schedule.
$ ray "how consistent have my investment contributions been?"Related terms
Compound Interest
Compound interest is interest earned on both your original principal and on previously accumulated interest.
Index Fund
An index fund is a type of mutual fund or ETF designed to track the performance of a specific market index, like the S&P 500.
Bear Market
A bear market is a sustained decline of 20% or more in a broad market index from its recent peak.
Portfolio
A portfolio is the complete collection of your financial investments — stocks, bonds, mutual funds, ETFs, real estate, and other assets.
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.