What do you mean by Lump Sum Investing vs DCA?


It seems like there is some confusion when it comes to Lump Sum vs DCA. If you are taking part of every pay check and investing it into your portfolio some people call this DCA I call it periodic automatic investment or doing multiple lump sum investments. If I say DCA I mean taking a lumpsum, (like a windfall or an inheritance,) and instead of investing it all at once (as a lump sum) investing it a fraction at a time over a period of time. Lump Sum investing to me means as soon as you got it you invest it. All of these strategies do not attempt to time the market.

What do you use DCA and Lump Sum to mean.

I think the world needs more words.


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