The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: $-Cost Averaging/Time Diversification: Myths Date:  3/18/2012  11:14 AM
Author:  ResNullius Number:  70385 of 90430

I might be wrong, but I think "Dollar Cost Averaging" was coined to describe the idea of putting aside as saving/investment a percentage of your income each month over a very long period of time, as in decades. This is what folks do when they contribute to their company's 401K each paycheck. The idea of what to do with a large lump sum of money that you get via inheritance or something of the like is not the traditional idea of dollar cost averaging. I think the data shows that you should just go ahead and invest a lump sum at one time, then go with the flow.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us