Lump-Sum Investing vs. Dollar-Cost Averaging: Actual Outcomes
Discussing lump-sum investing vs. dollar-cost averaging, let’s look at when dollar-cost averaging may be preferred.
Sudden market downturns can be unsettling. But historically, US equity returns following sharp downturns have, on average, been positive.
Sticking with your plan helps put you in the best position to capture the recovery.
(1) The average annualized returns for the five-year period after 10% declines were 9.33%; after 20% declines, 9.66%; and after 30% declines, 7.18%.
This post was prepared and first distributed by Dimensional Fund Advisors.
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Discussing lump-sum investing vs. dollar-cost averaging, let’s look at when dollar-cost averaging may be preferred.
In a match-up between lump-sum investing vs. dollar-cost averaging, which is the better bet?
Market performance in 2024 reflected the power of human ingenuity, which kept the economic engine going.
Let’s focus on actionable strategies to manage money scripts, flip unhelpful patterns and build healthier financial behaviors.