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I would say if you're interested in getting into passive investing it also makes sense to get into dollar cost averaging, or in other words invest a fixed amoun
by freetime2 7y ago
I would say if you're interested in getting into passive investing it also makes sense to get into dollar cost averaging, or in other words invest a fixed amount of money into the stock market at regular intervals.
Passive ETF investing is like saying "I don't have an opinion as to which company will perform the best, so I am going to invest in all of them and be content with getting the average return of some index". Dollar cost averaging is like saying "I don't know if the market is overvalued or undervalued right now, so I am going to spread my investments out over time and be content with getting the average returns of the market over the next X number of years (where X would ideally be something like 20 to 30 years)."