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re: If I start investing would it be better to dump a bunch of money all at once

Posted on 3/24/24 at 10:08 am to
Posted by 632627
LA
Member since Dec 2011
12874 posts
Posted on 3/24/24 at 10:08 am to
Someone here did an analysis on this recently, and quite simply, the market goes up more than it goes down. So, lump sum is best.

That said, psychologically, it's tough to dump everything at once when the market is at an all time high after a recent run up. I should know, I've been holding a big chunk of money that I wanted to invest since January, but have been so hesitant (I've invested small amounts here and there but still have a good amount in cash waiting for a pullback).
Posted by lynxcat
Member since Jan 2008
24265 posts
Posted on 3/24/24 at 10:11 am to
Other posters have hit it…market goes up more than down. Lump sum beats DCA about 2/3 of the time per a Vanguard study. DCA is typically better psychologically.
Posted by Geauxldilocks
Member since Aug 2018
2482 posts
Posted on 3/30/24 at 8:29 pm to
quote:

should know, I've been holding a big chunk of money that I wanted to invest since January, but have been so hesitant (I've invested small amounts here and there but still have a good amount in cash waiting for a pullback



Sell some puts OTM on some positions or indexes you like. You get the best of both worlds either way (entrance at pullback level or collect the premium if market goes up).
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