www.PlainAndSimpleInvesting.com

Start Investing Simply & Build Wealth Automatically

Learn the proven strategies of Dollar Cost Averaging and Auto Investing — the beginner-friendly path to long-term financial growth without the stress.

10+

Years Average Market Return

$0

Minimum to Start

5 min

Setup Auto-Invest

Compound Growth

CORE STRATEGY

What is Dollar Cost Averaging?

The time-tested strategy that removes guesswork from investing

Definition

Dollar Cost Averaging (DCA) is the practice of investing a fixed dollar amount on a regular schedule, regardless of whether the market is up or down. It's about consistency, not timing.

The Goal

Reduce the impact of market volatility by automatically buying more shares when prices are low and fewer shares when prices are high.

Result: Lower average cost per share over time

How It Works

Invest the same amount (e.g., $100, $500) weekly or monthly into the same ETF, stock, or fund over long periods of time.

Pick your investment
Set your amount
Choose your schedule
Let it run automatically

DCA in Action: $200/month Example

Month Investment Share Price Shares Bought Total Shares
January$200$504.004.00
February$200$40 ↓5.009.00
March$200$454.4413.44
April$200$55 ↑3.6417.08
Total $800 Avg: $47.50 17.08 Avg Cost: $46.84

Notice: When prices dropped in February, you automatically bought MORE shares!

The Psychology Benefit

DCA removes the pressure of "timing the market" — one of the biggest mistakes beginners make. It helps you stick to your plan during volatile times and eliminates emotional decision-making.

Instead of asking:

"Is now a good time to invest?"

"Should I wait for a dip?"

"What if I buy at the top?"

You simply invest on schedule. Every time.

Where DCA Is Commonly Used

401(k) Plans

Workplace retirement with automatic paycheck deductions

ETF Investing

Recurring investments into index funds and ETFs

Robo-Advisors

Betterment, Wealthfront, and similar services

Auto-Invest Features

Fidelity, Schwab, M1 Finance auto-invest

Advantages

  • Smoother Ride

    Less stressful during market swings and downturns

  • Disciplined Saving

    Builds consistent investing habits automatically

  • Lower Average Cost

    Can reduce average cost per share over time

  • No Timing Needed

    Removes the impossible task of predicting markets

Limitations

  • Lump Sum Can Win

    May underperform lump-sum investing in long-term rising markets

  • Diversification Still Needed

    DCA doesn't replace the need for a diversified portfolio

  • Not a Guarantee

    Doesn't protect against long-term market declines

  • Requires Patience

    Benefits compound over years, not weeks

RECOMMENDED APPROACH

Why Auto Investing Is the Best

Set it, forget it, and let your wealth grow on autopilot

Removes Emotions

Prevents panic selling and FOMO buying by executing your plan automatically on schedule.

Consistency

Ensures investing happens every paycheck without relying on willpower or remembering to log in.

Time-Saving

No need to watch markets or constantly decide "is now a good time to buy?"

Enforces DCA

Auto-invest is the practical, real-world way to implement Dollar Cost Averaging.

Think of It Like a Bill

Auto-investing treats investing like a bill you pay to your future self. Just like rent or utilities, it's non-negotiable and automatic.

Rent: $1,500
Utilities: $150
Future You: $500

Reduces Timing Risk

By spreading purchases across different market conditions, you avoid the risk of investing everything at a market peak.

Single Purchase Risk HIGH
Auto-Invest Risk LOW

Works Great with ETFs

Simple to automate contributions into a diversified portfolio like the classic 3-ETF strategy.

US Total Market (VTI) 60%
International (VXUS) 30%
Bonds (BND) 10%

Perfect for Beginners

Low decision load
Clear, simple rules
Minimal maintenance
Captures market growth
Builds wealth over time
No expertise required
THE MAGIC INGREDIENT

The Power of Compounding

Einstein reportedly called it "the eighth wonder of the world" — understand why your money grows exponentially over time

What is Compound Interest?

Compounding is when you earn returns not just on your original investment, but also on the returns you've already earned. It's interest earning interest.

Simple Example:

Year 1: $1,000 × 10% = $100 earned → Total: $1,100

Year 2: $1,100 × 10% = $110 earned → Total: $1,210

Year 3: $1,210 × 10% = $121 earned → Total: $1,331

Each year, you earn more than the year before!

$10,000 at 8% Annual Return

Year 0 $10,000
Year 10 $21,589
Year 20 $46,610
Year 30 $100,627

Your money grew 10x with zero additional contributions!

Time is Your Superpower

The longer your money compounds, the more dramatic the growth. Starting early is more powerful than investing more money later.

Rate of Return Matters

Even small differences in annual returns lead to huge differences over decades. This is why keeping fees low is crucial.

Reinvest Everything

Reinvesting dividends and returns accelerates compounding. Don't withdraw — let it grow!

The Tale of Two Investors

Early Emma

  • Starts at age 25
  • Invests $300/month
  • Stops at age 35 (10 years)
  • Total invested: $36,000

Value at age 65

$642,000

Late Larry

  • Starts at age 35
  • Invests $300/month
  • Invests until age 65 (30 years)
  • Total invested: $108,000

Value at age 65

$440,000

Emma invested $72,000 LESS but ended up with $202,000 MORE because she started 10 years earlier!

The Rule of 72

A quick way to estimate how long it takes to double your money:

72 ÷ Annual Return = Years to Double

Return Years to Double
4%18 years
6%12 years
8%9 years
10%7.2 years
12%6 years
INTERACTIVE TOOLS

Investment Calculators

See the power of consistent investing and compounding with your own numbers

Compound Interest Calculator

DCA Savings Calculator

Retirement Goal Calculator

Rule of 72 Calculator

VIDEO LEARNING

Learn from YouTube

Curated educational videos to deepen your understanding of investing concepts

Dollar Cost Averaging Explained

Beginner-friendly videos explaining DCA strategy step by step.

Beginner 35 min

Compound Interest Deep Dive

Understanding the mathematics and power of compound growth.

Intermediate 2 min

Setting Up Auto-Invest

Practical tutorials on automating your investments.

Practical 1 min

Recommended YouTube Channels

The Plain Bagel

Clear financial education

Two Cents

PBS personal finance

Ben Felix

Evidence-based investing

The Money Guy Show

Financial tactics that go beyond common sense

Ready to Start Your Investing Journey?

The best time to start investing was yesterday. The second best time is today. Use our calculators to see what's possible!