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Does lump sum investing beat dollar cost averaging?

A Wiser Retirement®
1.64K subscribers
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151 views 10 months ago #lumpsum #financetips #investingtips
If you have cash that you want to invest, is it better to invest it as a lump sum or dollar cost average over time? Some people are afraid to invest a lump sum because they are fearful of a potential market downturn after investing that money. That's understandable, but over the long term, does it really matter? According to a recent Vanguard study, you are 68% more likely to make more money by utilizing a lump sum investing strategy vs trying to dollar cost average it in over time. Dollar cost averaging outperforms cash 69% of the time and lump sum investing outperforms cash 70% of the time. Keep in mind that when you invest a lump sum, you automatically collect dividends. If you don't invest that money, you'll miss out on that dividend income. If you're concerned about a market downturn though, dollar cost averaging might be right for you. Download one of our free guides that covers financial planning topics like retirement, investing, taxes …...more
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Does lump sum investing beat dollar cost averaging?
4Likes
151Views
Jun 72024
If you have cash that you want to invest, is it better to invest it as a lump sum or dollar cost average over time? Some people are afraid to invest a lump sum because they are fearful of a potential market downturn after investing that money. That's understandable, but over the long term, does it really matter? According to a recent Vanguard study, you are 68% more likely to make more money by utilizing a lump sum investing strategy vs trying to dollar cost average it in over time. Dollar cost averaging outperforms cash 69% of the time and lump sum investing outperforms cash 70% of the time. Keep in mind that when you invest a lump sum, you automatically collect dividends. If you don't invest that money, you'll miss out on that dividend income. If you're concerned about a market downturn though, dollar cost averaging might be right for you. Download one of our free guides that covers financial planning topics like retirement, investing, taxes, divorce, and more! Click here: https://wiserinvestor.com/guides/ Schedule a consultation with one of our financial advisors: https://wiserinvestor.com/contact-us Subscribe to our YouTube channel:    / @awiserretirement   Connect: Website: https://wiserinvestor.com Phone: 678-841-0097 Facebook:   / wiserwealthmanagement   LinkedIn:   / wiserwealth   Instagram:   / wiserinvestor   Twitter:   / wiserwealthmgt   Podcast: https://www.buzzsprout.com/1941879 YouTube:    / wiserwealth   #lumpsum #investingtips #investingstrategy #financetips

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A Wiser Retirement®

1.64K subscribers