Don’t throw away your money
By consistently investing, you can take advantage of the average historical return of 10% that the market has experienced since its inception in 1928. Using this as an example.
If we are to assume that the market returns an average of 10% per annum, a $100 investment per month over five years would equate to just over $7,300 — $1,300 of which would be interest accrued on the principal invested.
When we push this dollar-cost averaging strategy out to ten years, it becomes a much more impressive $19,125.
And what about twenty years? Well, if you managed to dollar cost average for that long, you could be sitting on $68,730 at the end — almost $45,000 of which is interest accrued on the investment.
Not bad for a $100 investment per month.
Now imagine how much you could gain with an average return of 22% per year.