In this podcast episode, I answer a question from Jiani.
This is a great question and a fairly common question one - is it better to 'lump sum' invest or 'drip feed' / 'cost average' invest.
We go through the data, the pros and cons of each approach, some real life examples, what I personally do, and more, in this podcast episode.
Listen to the podcast episode for the full details.
Timestamps:
0:00 - Question from Jiani: Cost averaging vs Lump sum
1:24 - What is the difference?
2:45 - What the data shows
4:17 - Why lump sum investing wins
5:13 - Why cost averaging/drip feeding might still be better
7:09 - When does each strategy work best?
8:31 - Some real life examples
10:17 - The ‘lost decade’ where drip feeding won
12:08 - The final verdict
13:23 - What do I do?
14:4 - Outro
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More investing:
📝 Download my free investing guide to help you start investing - https://www.makingmoneysimple.co.uk/Free-Investing-Guide
📕 Get my book Stop Waiting, Start Investing (available as a physical, digital and audiobook) - https://www.makingmoneysimple.co.uk/swsi-book
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⚠️ Disclaimers: I am not a financial advisor and this does not represent financial advice, it is for entertainment purposes only. Please seek professional advice to get the best information for your personal situation. When investing, your capital is at risk and you may get back less than invested. Past performance does not guarantee future results.
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