Lump Sum Investing vs Dollar Cost Averaging: Best Method Explained

You've come into some money and you want to invest. Is it best to invest it all at once or dollar cost average the balance over a period of time? Today we look at evidence based research to determine the correct answer.

The debate between lump sum and dollar cost averaging is probably one of the oldest in investing. Thanks to some very thorough research from Vanguard which is linked below, we know what the data says is the best thing to do. But really this is still only half the story and with Lump sum vs DCA there is a few factors to consider.

The study I reference can be found here: https://static.twentyoverten.com/5980d16bbfb1c93238ad9c24/rJpQmY8o7/Dollar-Cost-Averaging-Just-Means-Taking-Risk-Later-Vanguard.pdf

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InvestEngine
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Vanguard:
https://www.vanguardinvestor.co.uk/
This is not an affiliate link

Freetrade:
https://magic.freetrade.io/join/damie...
This is not an affiliate link. But if you sign up they will give you a free share worth up to £200.

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DISCLAIMER: I am not a financial advisor and non of the content on this channel is financial advice. All information is provided educational/entertainment purposes. If you are making investment or other financial decisions and require advice, please consult a suitably qualified licensed professional.

Видео Lump Sum Investing vs Dollar Cost Averaging: Best Method Explained канала Damien Talks Money