Lump sum investing

Investing all your money at once.

Lump sum investing means putting a large amount into the market all at once, instead of spreading it out over time.

Lump sum vs DCA

Because markets rise more often than they fall, investing everything immediately has historically beaten spreading it out about two-thirds of the time. The money simply spends more time invested.

The catch is regret. Investing everything the week before a crash is painful, and some people prefer to spread a windfall over several months to sleep better. Both approaches beat leaving cash on the sidelines.

Try it with real numbers Lump sum vs DCA Same money, two ways Open the calculator