Many investment options, such as annuities, mutual funds or retirement plans enable you to set up a systematic investing plan called Dollar Cost Averaging (DCA). DCA is one of the simplest, most effective investment strategies for building assets over the long term, because potentially it can turn the normal ups and downs of the markets to your advantage.
By investing a fixed amount at regular intervals, you buy fewer shares/units when the price is high and more shares/units when the price is low. While DCA does not assure a profit or protection against loss in a declining market, it does provide an easy, disciplined way to invest in the market and can lower your average cost per share/unit. For the DCA technique to be effective, you should continue to invest during both market ups and downs and should consider your financial ability to maintain a consistent level of investment.
The following chart shows a hypothetical example of DCA in action:
In this example, the average market price was $20, but by Dollar Cost Averaging, your average purchase price would have been only $16.30. With DCA you buy more when prices are low and purchase less when prices are high resulting in a lower average purchase price.
Talk to an agent or advisor about how DCA with Symetra products can help you reach your financial goals.
Before investing, carefully consider the investment objectives, risks, charges and expenses. This and other information is contained in the contract prospectus and the underlying portfolio prospectuses. Please call or write your Registered Representative or Symetra for free copies of the prospectuses and read them carefully before investing.
Dollar cost averaging involves continuous investment in securities regardless of fluctuating prices. Dollar cost averaging does not, however, assure a profit or prevent a loss in declining markets.
Guarantees and benefits are subject to the claims-paying ability of the underlying insurance company.
Securities are offered through Symetra Securities Inc., member SIPC, Bellevue, Washington 98004.
Variable annuities are issued by Symetra Life Insurance Company, 777 108th Ave. NE Suite 1200, Bellevue, WA 98004-5135. Please check for state availability.
Variable annuities, which are suitable for long-term investing, and mutual funds are subject to market risks, including the potential loss of principal invested.
