When it comes to investing, one strategy has stood the test of time for its simplicity and effectiveness: dollar-cost averaging (DCA). But while it’s easy to understand, sticking to it consistently can be challenging—especially in today’s fast-paced world. Enter automation. With the right tools, you can set your dollar-cost averaging strategy on autopilot, allowing you to focus on long-term success without the hassle of manual execution.

What Is Dollar-Cost Averaging (DCA)?

Dollar-cost averaging is the process of investing a fixed amount of money at regular intervals, regardless of the asset’s price. This strategy removes the guesswork of trying to time the market and helps reduce the emotional impact of volatility.

Here’s why DCA works:

• Market Timing Avoidance: Instead of worrying about when to buy, you’re consistently investing, capturing both high and low prices.

• Reduces Emotional Investing: DCA keeps you disciplined, ensuring that fear or greed doesn’t dictate your decisions.

• Long-Term Wealth Building: Over time, regularly investing builds your portfolio regardless of short-term market fluctuations.

Why Automate Dollar-Cost Averaging?

Manually managing your DCA plan can be cumbersome. Tracking dates, logging into accounts, and transferring funds can take time and energy. Automation eliminates these friction points. Here’s why automating DCA is a game-changer:

1. Consistency: Automation ensures you never miss a contribution, even when life gets busy.

2. Reduced Emotional Bias: Automated systems execute your strategy without second-guessing market conditions.

3. Time Savings: Free up time and mental energy by letting technology handle the details.

4. Compounding Benefits: Regular, consistent investing means your money works harder for you over the long term.

How to Automate Dollar-Cost Averaging

1. Choose the Right Platform

Look for a brokerage or investment platform that allows recurring investments. Many modern platforms support automatic contributions to stocks, ETFs, and mutual funds.

Surmount’s automated investing platform offers seamless dollar-cost averaging by linking to your existing brokerage account. With strategies tailored to your goals, it’s never been easier to stay consistent.

2. Set a Schedule That Works for You

Decide how often you want to invest: weekly, biweekly, or monthly. Choose a schedule that aligns with your income cycle and ensures you can stick with it.

3. Define Your Investment Amount

Choose a fixed dollar amount you’re comfortable with. Remember, the goal is consistency—so pick an amount you can sustain during both good and challenging financial times.

4. Select Your Investment Assets

Focus on diversified assets such as index funds or ETFs to reduce risk. If you’re unsure where to start, automated platforms can recommend strategies based on your risk tolerance and time horizon.

5. Monitor Progress, but Don’t Overreact

Once your plan is automated, resist the urge to micromanage. Review your portfolio periodically (e.g., quarterly or annually) to ensure it aligns with your goals, but avoid making emotional decisions during market fluctuations.

Tools for Automating DCA

Here are some popular tools to make DCA automation seamless:

• Surmount: Automate your existing brokerage accounts with advanced strategies.

• Brokerage Apps: Many platforms like Fidelity, Vanguard, and Schwab offer automated contributions.

• Micro-Investing Apps: Tools like Acorns and Stash allow you to invest small amounts on a recurring basis.

The Long-Term Power of DCA

Dollar-cost averaging is not a get-rich-quick scheme, but it’s a proven method for building wealth over time. By automating your DCA strategy, you can unlock the full potential of consistent investing while minimizing stress and emotional decision-making.

Whether you’re just starting or looking to optimize your current strategy, automation puts you on the fast track to achieving your financial goals. Consistency, patience, and technology are the winning trifecta for long-term investing success.

Disclaimer: The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.