Question¶

If you receive a $100,000 windfall, what are the tradoffs between investing those funds immeadiately versus dollar-cost averaging the investment over time?

Background¶

Dollar-cost averaging (DCA) and lump-sum investing (LSI) have long been debated. If you believe the market generally goes up, LSI allows you to gain exposure to the market as soon as possible. DCA on the otherhand, minimizes potential feelings of regret (i.e. you invest your lump sum right before a market crash). A Vanguard study
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