The chapter delves into the debate between lump sum investing and dollar-cost averaging, exploring the implications for a listener receiving a windfall and considering financial goals such as emergency savings and future investments. It discusses the effectiveness of each strategy, highlighting the importance of market timing and presenting research findings supporting lump sum investing for both risk mitigation and growth opportunities. The speaker emphasizes patience in investing, long-term goal focus, and avoiding impulsive decision-making.
#507: Robert was recently released from prison and wants to start his life on the right foot. What’s Joe and Paula’s advice for him?
Suzy is excited to deploy her first corporate bonus but scared to invest everything in a lump sum. Should she stick with what’s worked in the past and just dollar cost-average?
Meghan doesn’t understand how stock pricing affects capital appreciation. Is it always better to buy when share prices are low?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
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For more information, visit the show notes at https://affordanything.com/episode507
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