Best Estate Planning Attorneys in Greenwood Village, CO

Dollar cost averaging is like a cigarette after a long day of work; it may feel good but it's not always reasonable. The fact of the matter is, money invested today is worth more than money invested tomorrow and the best time to start #investing is right now. When it comes to making contributions to investment accounts, there are two main strategies to choose from: lump-sum investing and dollar-cost averaging. With lump-sum investing, you invest all of your investible cash immediately, while with dollar-cost averaging, you slowly invest a certain amount of your investible cash over a pre-determined amount of time. A paper published by PWL Capital (comments) in 2020 examined historical data in several countries and compared how often lump-sum investing outperformed dollar-cost averaging over a 10-year period in every single 10 year timeframe. The results showed that lump-sum investing beat dollar-cost averaging 65% of the time and 71% of the time for U.S equity investors. On average, by implementing a dollar-cost averaging strategy, investors' returns were 0.38% lower per year over the 10-year period. Many people believe that dollar-cost averaging provides #protection against market crashes, but the PWL paper found that this is not the case. As we enter a world of lower expected returns, #investors can't afford to leave #money on the table. Don't make emotional financial decisions; be data driven...