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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: $-Cost Averaging/Time Diversification: Myths Date: 3/18/2012 2:30 PM
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Way back in the day when TMF did some decent educating, there was an article talking about lump sum investing. The example was two people investing the max amount in an IRA once a year. The first always happened to pick the low point of the market to invest each year and the other the high point. Over a decade the difference in CAGR was only a couple points.

A couple points can make a difference over a long period of time but it showed that it wasn't double digit. It alleviated the fear of the worse case scenario happening every year.

IMHO, DCA is a sleep at night factor when comparing to a lump sum investment.

JLC
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