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Automated ETF investing: DCA for cautious investors

Combine monthly deposits, semiannual rebalancing and a 60/40 mix to sleep well at night.

April 9, 20266 min read
ETFDCAMonthly saving

Key takeaways

Eighty percent of returns come from discipline, not timing the market.

  • Stick to two global ETFs—equity plus bonds—to keep it simple.
  • Schedule the automatic transfer on payday.
  • Rebalance every six months or at ±5% drift.

Define the plan

Set your FIRE target using the FIRE calculator and derive the monthly contribution required.

Split contributions into 60% global equities and 40% short-duration bonds to soften drawdowns without sacrificing growth.

Lightweight tracking

Log each deposit with date, amount, NAV and a quick mood note—it keeps perspective during volatility.

When equities exceed 65%, direct the excess to bonds. If they fall below 55%, increase the equity leg.

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