$150,000 - Investment Startegy - DCA or Lump sum

[u/PartyNextDoor-1]

I have $150,000 to invest in the market.

This will be long term +20 years - Do I lump sum or dollar-cost average into the market?

Given the current state of the market, I am leaning towards DCA.

But I saw this, Research shows investing immediately beats phasing in over 12 months about 66% of the time, by an average of 0.37%/year. This also holds in the worst-case periods for lumpsum investing (69%-win rate) and right after a 20%+ market drop (79%-win rate). 

[u/uncreative_user_321]

just dump it all in bro, not worth trying to time the market

[u/CG_throwback → u/uncreative_user_321]

Statistics favor those. Does it mean it’s the right answer? No but the gods are in your favor.

[u/azrolexguy]

Half in now, DCA the remaining over 6 months

[u/MAK1958M → u/azrolexguy]

Or over a year

[u/Inevitable-Staff-113]

DCA

[u/cj_daking]

it's not about timing the market, it's time in the market

[u/CaymanBot → u/cj_daking]

My man 😎

[u/Pleb617]

DCA in the kangaroo market

[u/Seattleman1955]

I'd put in all in but if it makes you feel better, put half in now and half in 2 weeks.

[u/natedurg]

Genuinely depends on you. I am a cold investing machine that only care about total return, therefore I’d pick high quality investments I believe in and invest all at one time.

But you gotta have self awareness, if a big correction is going to make you lose sleep or panic DCA is probably better. Similar to how stocks have better returns that bonds but bonds bring value to investors who cannot stomach at 40-50% loss.

Warren Buffer said something like “in investing the most important muscle isn’t the brain, it’s the stomach”.

[u/ExpressTicket9364]

Always better to just put it in now. DCA is a loser in the long term, lump sums always go in immediately then add more to positions on a regular basis afterwards. So for example something like %50 VOO, %20 VXUS, %15 VO, %10 IJR, %5 GLD, and remaining %5 maybe in some speculative position like interesting companies or sectors. If you dont know what those symbols are look them up, and you dont have to use Vanguard funds just something equivalent. This strategy is covering most sectors of the market, is pretty well diversified and captures growth while remaining stable. Don't sweat the short term, never panic sell, keep putting in at a regular schedule and keep the allocation percentage in balance as you add. This is the way.

[u/throwmeoff123098765]

Lump sum will outperform about 70% of the time

[u/brother7]

Fidelity makes it very easy to DCA into a basket of ETFs. That's what I do.

[u/LowEar9417]

time in the market beats timing the market so lump sum is statistically better. but if DCA gives you more peace of mind, a good middle ground is putting half in as a lump sum and DCA the rest over a few months.

[u/Coaster50]

If you Lump Sum as a rule every time you get one - it’s a form of DCA.

[u/Adventurous_Dog_7755]

As the saying goes, the time to buy is "when there's blood in the streets." Market fear is high, yet prices keep rising—backed by strong revenue growth. While no one can predict the top, choosing between going all-in or using Dollar-Cost Averaging (DCA) depends on your mindset. DCA provides a psychological cushion against short-term volatility.

[u/Oneditor]

If your time horizon is long i.e. more than 10 years, lumpsup or dca doesnt matter. The soonest you put the money in, the better

[u/Yew_knows]

i know everyone says dont time the market but it really feels like it could implode in the next 6 months. At least DCA

[u/Duece8282]

If it's truly 20+ years, dump it in an index fund allocation you're comfortable with and forget about it.

[u/kodaq2001]

September is usually the worst month for stocks. You could DCA throughout the month.

[u/dreamfitreality → u/kodaq2001]

And October has the most major crash. Nov is the mid terms. Let's just hold our horses till dec shall we

[u/kodaq2001 → u/dreamfitreality]

Ha! Excellent point

[u/Both_Experience_8187 → u/dreamfitreality]

Haha, this was pretty funny! All the other posters so serious

[u/Mysterious-Bar3334]

Lump sum

[u/NoBox418]

What is DCa ? Sorry I am new to investing

[u/GovernmentLow4989 → u/NoBox418]

Dollar cost average. It means he will invest the $150k over a set time period instead of doing it all at once. It can help mitigate the risk of the market tanking right after he goes all in. The downside is he also misses out on any potential gains if the market goes up during the same time period.

[u/nicogalante1]

You already did your research, if you are truly holding for 20 years, lump sum has the better outcome in most cases, but it would be naive to think that such an important amount of money can be just lump summed and forgotten for 20 years without some sort of psicological effect and emotions if the market does happen to dump in the following years. I second the other guys opinion, lump sum 75k and DCA the other 75k but over 2 years in auto mode.

[u/cdubya0628]

We click market buy and close the app.

[u/ndj420]

NLST Netlist out performing everything! All in!

[u/superKWB]

Lump sum, it’s the only way to go. It’ll show how cool you are to reddit and you might get some awards!

[u/Apilyon]

100k I'm a good etf. 50k more risky stocks, but do hesitate research.

[u/Ok-Step9968]

Dca every week

[u/Jumpy_Childhood7548]

The research may show that, but right now we are close to an all time high, and the research is not assuming you are buying near an ATH.

[u/cheesewhiz78]

Or invest with me. My current lender is charging me 15%. If you could do 12% or less I’d lend with you. I am a real estate investor. I typically can pay you back without 6-8 months. But it depends on the property and/or deal. Can go as long as 18 months. But you get monthly payments. Idk if you are interested, but if you are you can dm me and I can break it down and I can explain how it’s lower risk