What’s dollar-cost averaging (DCA)?
Timing risk, such as buying when the market peaks and selling when the market loses momentum, can be a concern. A DCA program on your variable annuity contract or variable universal life insurance policy will automatically transfer your assets from a Fixed Account or DCA Account (if available) into other investment options on a regularly scheduled basis. The initial purchase payment amount to be dollar-cost averaged is allocated to the appropriate DCA Account, and a portion of the money is moved on a monthly or quarterly basis to the selected variable portfolios over a six- or 12-month period, until the entire amount to be dollar-cost averaged has been transferred. Because of the monthly or quarterly transfers, the stated interest rate is not earned on the entire amount allocated to the dollar-cost averaging account; therefore, the daily accrual and the effective yield will be affected. These interest rates do not reflect the performance of any portfolio option available under the cont
