Lump-Sum Investing vs. Dollar-Cost Averaging – Actual Outcomes
In Part 2, we continue to explore different strategies for investing available cash: Should you invest it all right away as a lump sum? Or are you better off wading in more gradually with dollar-cost averaging? Traditionally, lump-sum investing is expected to generate the highest returns over time. For simple reason, in markets that have risen more, and more often than they’ve fallen, the sooner you deploy your investable assets, the more time they have to grow. That said, general rules don’t always apply to you. Let’s look at when dollar-cost averaging may be preferred after all. Considering the Big …
Lump-Sum Investing vs. Dollar-Cost Averaging – Reviewing Returns
While the words may sound intimidating, the difference between a lump-sum investment strategy and a dollar-cost averaging investment strategy comes down to one simple question, “Should you invest your cash all at once? Or in smaller segments over a period of time?” In the following article we explore the pros and cons of two different investment strategies. Next time you have a lump-sum of investable cash, whether through inheritance, savings, or other means, we hope you’ll feel well informed of your options. As always, every financial situation is unique, please contact ShankerValleau to discuss the right investment strategy for you. …
