All the Hacks with Chris Hutchins cover image

Building an Investment Portfolio to Grow and Protect Your Wealth with Chris Doyle

All the Hacks with Chris Hutchins

NOTE

Investment Strategy: Comfort vs. Expected Value

When deciding on investment strategies, it is important to consider your comfort level and behavior. While lump sum investing technically has higher expected value due to the market's long-term upward trend, it may not be suitable for everyone. Investing gradually over time may not maximize expected value but can reduce the emotional toll and regrets associated with market fluctuations. Studies show that while investing all at once yields marginally better results on average, it's not significantly higher than dollar-cost averaging. Prioritizing peace of mind over maximizing value can be a valid approach, especially if it aligns with your comfort level. This strategy may mean missing out on some expected returns, but if it means feeling more at ease with your decisions, it could be worthwhile in the long run.

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