Lump Sum vs Dollar Cost Averaging. Which One Actually Wins.

What the data actually says about lump sum investing versus dollar cost averaging and why the answer surprises most retail investors.

Someone comes into money. An inheritance. A bonus. A property sale. Savings sitting in a bank account earning nothing. The question is always the same. Do I put it all in at once or do I spread it out over time to reduce my risk.

The instinct to spread it out feels logical. But the data says something different. Investing a lump sum immediately outperforms spreading the same amount over time approximately two thirds of the time. Not occasionally. Consistently. Across decades. Across different market conditions.

In this episode we break down exactly why lump sum investing wins in most scenarios, the two specific situations where dollar cost averaging is the clearly correct choice, and the three questions that make the decision clear when the choice is actually in front of you.

• Why every day capital is not invested is a day it is not compounding
• Why dollar cost averaging wins the behaviour argument even when it loses the math argument
• The two situations where spreading purchases over time is the rational decision
• Three questions that make the lump sum versus dollar cost averaging decision clinical rather than emotional
• How the risk and reward framework applies to every capital deployment decision not just individual stocks

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