Do You Lump Sum Invest or Try to DCA?
I read through quite a few threads in the archives about investing bonuses, but none mentioned the investment timing. Do you guys tend to invest your bonuses in a lump sum when received, or do you try to dollar cost average?
I’d ideally like to DCA, but figuring how much to invest each period is complicated by the unknown future bonus amounts. I believe research has shown that lump sum investing averages higher returns, but I like the peace of mind of DCAing.
What do you all do?
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