ALTERNATIVE STRATEGY TO DOLLAR COST AVERAGE VS LUMP SUM INVESTMENT DECISION I often have clients who feel anxiety over the thought of making a significant lump sum investment into the stock market, and for good reason. A poorly timed investment at a market high can result in the person waiting years in order to break even. The following are some of the longest breakeven recovery periods in stock market history: ~15 years from Sept 1929 to late 1944 ~7.5 years from Jan 1973 to July 1980 ~7.2 years from Mar 2000 to May 2007 ~5.4 years from Oct 2007 to Mar 2013 ~3.3 years from Nov 1968 to Nov 1972 Note, the above does not include inflation, which would further increase the recovery period. However, statistically, a lump sum investment will outperform money that is Dollar Cost Averaged about 2/3 of the time when looking at total future returns. A hybrid strategy I have recommended for people feeling anxiety when choosing between Dollar Cost Averaging vs a lump sum investment is to do both. This is done by taking about 50-65% of the total amount of money and making a lump sum investment, and then Dollar Cost Averaging the rest over the next 6-12 months. I never want client anxiety to keep them out of the market, and have found this Hybrid strategy helpful for alleviating anxiety and encouraging action. What are your thoughts? #Investing #PersonalFinance #StockMarket #WealthBuilding #FinancialPlanning

@RetainerAdvisor People should choose the strategy they are most comfortable with. When it comes to my own money, I fire it all at once. (As I did in 2015 with 7 figures from my poker bankroll).