The Annual DCA Health Checklist
10-point annual DCA health check with pass criteria
| # | Check | What to Look For | Pass Criteria |
|---|---|---|---|
| 1 | Automation is running | Review last 12 months of automatic purchases | 12 purchases per account, no gaps |
| 2 | Expense ratios | Current ER on all fund holdings | Below 0.1% for index funds |
| 3 | Contribution rate | Current monthly DCA / monthly gross income | 12-20% of gross |
| 4 | Account type sequence | Is IRA maxed before taxable DCA? | Roth/IRA maxed first |
| 5 | Employer match captured | 401(k) contribution = at least full match trigger | 100% match captured |
| 6 | Asset allocation | Current equity/bond split vs. age-appropriate target | Within 5% of target |
| 7 | Concentration check | No single holding above 10% of portfolio | All holdings below 10% |
| 8 | Emergency fund status | 3-6 months of expenses in HYSA | Fully funded |
| 9 | Calculator projection | Run current balance through DCA calculator to goal | On track within 10% |
| 10 | Annual contribution increase | Increase DCA by 3-5% or to match income growth | Contribution increased from last year |
Set a December 31 calendar reminder. Budget 60 minutes. Use this checklist to run through all 10 items. If everything passes, great — the plan runs for another year. If anything fails, fix it before January 1 so the next year starts optimized.
The Most Commonly Failed Checks
Based on patterns in investor behavior research, checks #3 (contribution rate) and #10 (annual increase) fail most often. Income grows; contributions don’t. Over 10 years, a $600/month contribution on a $60,000 salary feels appropriate — but after salary growth to $90,000, the same $600 is now only 8% of income instead of 12%. Every year without an increase is a missed compounding opportunity.
Most commonly failed DCA checks, typical cost, and time to fix
| Check | % of Investors Who Fail | Typical Cost | Fix Time |
|---|---|---|---|
| Contribution rate stagnant | ~60% | $50-200K over 20 years | 30 minutes |
| High expense ratio | ~45% | $20-80K over 20 years | 15 minutes |
| Employer match uncaptured | ~25% | $5-15K/year in missed match | 10 minutes |
| DCA in taxable vs. IRA | ~35% | $100-200K over 30 years | 1 hour (setup) |
Run Check #9: Are You On Track to Your Goal?
Enter your current balance and monthly contribution to see whether your DCA plan reaches your target on time.