3 ms·
I read somewhere they used previous outcomes to simulate lump sum investments at the start, and weekly/monthly deposits. End result wasn't that much different
by sergiotapia 8y ago
I read somewhere they used previous outcomes to simulate lump sum investments at the start, and weekly/monthly deposits.
End result wasn't that much different - the lump sum did do better, but not significantly. The weekly/monthly deposits was smoother.
- AznHisoka 8y agoicedchai summed it above but the reason for this isn't to maximize return - it's psychological. If the market drops, you now can buy more at a cheaper price. If you spent it all, you probably would be tempted to cash it all out to cut your losses. of course, you shouldn't, but we're talking about our lizard brains here.