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Invest 50% of it lump the moment you get it (month 0, or say today Feb 25) and for after each month, invest 10% (months 1, 2, 3, 4 and 5 accordingly). So in 5 months you are fully invested. It's a nice compromise between lump sum and DCA.
MJ may have pointed it out already but every day that we don't sell all our positions we effectively lump-sum our entire portfolio at the closing price. For instance; most of us here lump summed the value of our entire portfolio at the closing price last Friday.
The difference is 90% of those lump sum were bought when the dow jones was below 23000.
Invest 50% of it lump the moment you get it (month 0, or say today Feb 25) and for after each month, invest 10% (months 1, 2, 3, 4 and 5 accordingly). So in 5 months you are fully invested. It's a nice compromise between lump sum and DCA.
The difference is 90% of those lump sum were bought when the dow jones was below 23000.
It’s not about performance, it’s about not panic and sell if there are more down. My kid is only 24. She has a long time. But she’s already contributing to 401k biweekly, so she’s already do DCA, this is no different.
I'm going to hold off on buying for now. I only have 3 months of liquidity (we also have a CD = 6 months) and I want to make sure we're on solid ground through this global event. Maybe when they've got a vaccine ready and the epidemics are ALL plateauing.
The market will fully recover before there are clear signs of the epidemic being over. By the time you realize it, it will be too late and gains already had.
The market will fully recover before there are clear signs of the epidemic being over. By the time you realize it, it will be too late and gains already had.
that is always the case .
although some dont think so , i believe all our drops are triggered by stuff not on the radar yet as any real problem . but by the time we realize it is a problem and not just noise the damage is done enough that any plan we had to change allocations or do something is likely not going to happen because in our minds the recovery is right around the corner . only we fall farther .
just as fast are the recoveries starting , when there is no sign yet anything changed and the biggest gains are very early on .
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Last edited by mathjak107; 02-25-2020 at 12:55 PM..
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