I'm a huge believer in simple investing strategies. Easy to understand, and even easier to do. When it comes to investing in stocks, there are few strategies better than dollar-cost averaging index funds. All that means is spreading out your investment purchases over time into your index fund of choice (like the S and P 500).

One reason to use this investing strategy is that it protects you from stock price fluctuations. You have to remember that in the stock market, a stock's price isn't necessarily a reflection of the underlying company's intrinsic value (at least in the short term). This goes double for stocks that are volatile. So at any given point, a stock's price relative to the stock's intrinsic value can be overvalued, undervalued, or at fair value. But with dollar-cost averaging, it doesn't matter. Because you're investing in increments over time, at some points you're investing when the stock is expensive, and at other points, the stock is cheap. So on average, you're investing at intrinsic value without ever having to know it. That's the beauty of dollar-cost averaging. You can invest confidently, knowing you're purchasing stock at a fair price!

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