How consistent contributions can help offset market uncertainty

As we head into 2026, investors continue to face familiar themes: market volatility, interest rate uncertainty, geopolitical tension, and economic data that can shift sentiment overnight. In periods like these, it’s easy to wonder whether now is the “right time” to invest.

 

The truth? Perfect timing is almost impossible. But consistent, disciplined investing through a strategy called Dollar-Cost Averaging (DCA) can help smooth the ride and keep long-term plans on track.

 

 

What Is Dollar-Cost Averaging?

Dollar-Cost Averaging simply means investing a fixed amount of money at regular intervals, regardless of market conditions.

Instead of trying to guess when prices are low or high, you invest steadily over time. This approach allows you to:

• Buy more shares when prices are down
• Buy fewer shares when prices are up
• Keep emotions in check
• Stay focused on long-term growth, not short-term noise

It’s the same method most people use in workplace retirement plans, where contributions are made automatically each pay period.

 

 

Why DCA Matters in 2025

The year ahead is expected to bring continued market swings as investors look for clarity on interest rates, inflation, and economic growth. Uncertainty often leads to hesitation, but hesitation can mean missing opportunities. 

 

Dollar-Cost Averaging can help:

• Reduce the impact of volatility by spreading purchases over time
• Avoid emotional decision-making during market highs and lows
• Lower the risk of investing a lump sum at the wrong moment
• Build long-term discipline, one contribution at a time

With DCA, you don’t need perfect timing. You just need consistency.

 

 

The Psychological Advantage

Investors often struggle with two emotional traps:

1. Fear during market downturns
2. FOMO during market rallies

Dollar-Cost Averaging helps remove both by automating the process. When investing becomes routine, emotions take a back seat and long-term success becomes more likely.

 

 

Real-World Example

Imagine investing $500 per month throughout the year.

Some months, the market will be higher - so you’ll buy fewer shares. Other months, the market may dip - so your same $500 buys more.

 

Over time, this can reduce the average price you’ve paid per share, lessening the impact of short-term volatility.

 

 

Where DCA Works Best

Dollar-Cost Averaging is especially effective for:

• Retirement accounts (401(k), IRA, Roth IRA)
• Regular monthly savings plans
• Long-term goals like college savings or wealth accumulation

It may be less ideal when investing a very large lump sum, so it’s always worth discussing your specific situation with your advisor.

 

 

How to Put DCA Into Action for 2026

Here are a few simple ways to take advantage of Dollar-Cost Averaging this year:

• Automate retirement contributions
• Set up recurring transfers into investment accounts
• Increase contributions with raises or bonuses
• Review your 2026 financial goals and adjust monthly amounts accordingly

 

Small, steady steps can add up to meaningful long-term growth.

 

 

Final Thought

In a world full of uncertainty, Dollar-Cost Averaging offers something invaluable: consistency. This disciplined approach helps you keep investing through all market environments so when the inevitable upswing comes, you’re already positioned to benefit.

 

If you’d like to explore how this strategy fits into your 2026 financial plan, our team is here to help.

 

 

 

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.