The Military Money Manual Podcast Lump Sum Vs Dollar Cost Averaging #171
Which is better, lump sum investing or Dollar Cost Averaging? Bottom line, neither is significantly better, although lump sum investing statistically wins slightly. The more important factor in you building wealth is that you invest consistently for the long-term!
Missing just the 10 best trading days between 2002-2022 would cut your returns by 50%. Don't play games when you know it's impossible to win. Just keep investing!
Links from today's episode:
- Vanguard white paper on lump sum vs. DCA
- Military Money Manual blog post on this topic
- How to Time the Market
- World's Worst Market Timer (only investing at the peak)
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