Got Bucks? Invest Them All at Once

The case for lump-sum investing over dollar-cost averaging.

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By SHARE

Given that the ending balances in Vanguard's trials were fairly marginal, perhaps dollar-cost averaging provides a psychic benefit to some that's worth the trade-off in return. But there is a trade-off, especially longer-term. When your investment horizon is years or decades, staying in cash or bonds is the riskier option, not the prudent one, because you're almost certain to sacrifice gains you could have gotten in equities.