But for real, DCA usually implies one has a choice. “Do I lump sum this or DCA?” In this case, I don’t have a lump sum, I just add money from my paycheck every month.
If I did have a lump sum to put into the market, I would not DCA since DCA does worse ~66% of the time. Most of the time, one would be better off putting the entire sum into the market all at once.
pushes up glasses ACSHUALLY. Ok, JK.
But for real, DCA usually implies one has a choice. “Do I lump sum this or DCA?” In this case, I don’t have a lump sum, I just add money from my paycheck every month.
If I did have a lump sum to put into the market, I would not DCA since DCA does worse ~66% of the time. Most of the time, one would be better off putting the entire sum into the market all at once.
Dollar cost averaging, as in contribute regularly, you’ll buy when things cost less you’ll buy when things cost more it won’t matter over time.
Just keep contributing and the numbers will go up over time.