A large bonus has landed. Your RSUs have vested. Or perhaps you've received a redundancy payout. The money is sitting safely in your savings account or offset, but now comes the difficult question: Should you invest it all at once or spread it out over time?

In Episode 23 of Wealth Bytes, Mo Shouman explores the real cost of waiting and what the research says about investing a lump sum versus dollar-cost averaging. Using historical data, real-world examples, and common investor concerns, this episode explains why having a clear plan for your money can matter more than trying to find the perfect time to invest.

What You’ll Learn in This Episode:

• What the research says about lump-sum investing versus dollar-cost averaging
• Why investing immediately has historically come out ahead more often
• How delaying a $100,000, $500,000, or seven-figure investment can affect long-term wealth
• When dollar-cost averaging may make more sense
• Why redundancy payments and short-term cash needs should be treated differently
• How employer shares can create concentration risk before investment timing even becomes the question
• Why trying to time the market can leave investors sitting in cash for too long
• How your emergency fund and short-term money should be separated from long-term investments
• Four practical steps for investing bonuses, RSUs, and other lump sums without second-guessing yourself
• A real-world example showing how different market conditions can affect lump-sum and drip-fed investing

Key Takeaways & Strategies:

• Time in the market matters: Delaying long-term investments can come with a real opportunity cost The research favours lump-sum investing more often, but it is not a guarantee

• Drip feeding can still be useful: Especially for investors who need a more gradual approach to manage their comfort with market volatility
• Don't invest money you need soon: Emergency reserves and short-term goals belong in different buckets
• Have a rule before the money arrives: Pre-deciding what you'll do removes emotion from the decision
• Tax needs to be considered upfront: Bonuses, RSUs, dividends, capital gains, and super contributions can all have different tax implications
• Avoid concentration risk: If a lump sum is already tied up in employer shares, diversification may need to come first
• Don't let cash sit without a purpose: The biggest cost may be having no investment plan at all
• Let compounding do the heavy lifting: Consistent decisions across bonuses and RSU vesting can have a significant impact over a career

Connect with Mo Shouman:

Connect with me on LinkedIn: Mo Shouman

Email: mo@mywealthchoice.com.au

Visit: www.mywealthchoice.com.au

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