DCA Start

Dollar Cost Averaging (DCA) is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time. This spreads the cost basis out over several years, providing insulation against changes in market price.

DCA Start activity is spawned when DCA is indicated on the Deferred Annuity segment.  This start date is the date entered when configuring the Deferred Annuity segment.

DCAStart Activity on the Activity Screen

In order to set-up DCA, the Deferred Annuity must be configured to use DCA.  This is done by selecting Yes in the DCA field and entering the following field information.

DCA Information on Deferred Annuity

Start Date:  Must be 30 days after the effective date.

Frequency:  The payment schedule.

Amount:  The amount that is automatically paid.

Termination Date:  Date when payments should end.

DCA allocations must be configured using Allocations on the Left Navigation menu.