Money magazine Comments - Ask Paul: I want to start investing in ETFs but I can't shake the guilt Emily wants to diversify into ETFs, but feels guilty that she didn't do it in 2018 because they have jumped so much in price. https://www.moneymag.com.au/feed/latest?story=141575667 Sat, 20 Jul 2019 12:15:08 +1000 Sat, 20 Jul 2019 12:15:08 +1000 en-AU Copyright 2026 Money magazine 5 Money magazine Comments - Ask Paul: I want to start investing in ETFs but I can't shake the guilt https://media.moneymag.com.au/prod/media/library/Money_Mag/Logo/Logo_401x133.png Comment by Cynthia ()

Is someone able to explain dollar cost averaging to me please? Also, Emily you're doing better at 23 than I'm doing at 31. Keep going!

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]]> Cynthia () Sat, 20 Jul 2019 12:15:08 +1000 Comment by avacadotoast ()

say you bought 100 shares of XYZ today at $90 each, total outlay = 100 shares x $90 = $9,000

the following week you buy another 100 shares but now the price is $100, total outlay week 2 = 100 shares x $100 = $10,000

the "average cost" of the shares you now hold = $9,000 + $10,000 / 200 shares = $95 each.

dollar cost averaging takes the guess work out of trying to time the market and buying the dips.

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]]> avacadotoast () Sun, 11 Aug 2019 22:52:38 +1000