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The eternal investment question – “do I invest my money all at once or do I invest smaller amounts at predetermined intervals?” Otherwise known as lump sum investing vs. dollar cost averaging, or as our US colleague Jeff Troutner once termed it: wading vs. plunging.
What’s the best option? Before that, what’s behind the question in the first place? Fear and uncertainty. Fear of making a financial mistake because of uncertainty about the future. Both losing money and making a mistake can make us feel a little silly, but we need to acknowledge uncertainty is merely life we haven’t yet lived and there are no right or wrong decisions about things we couldn’t see. In hindsight we’ll often reanalyse a decision that didn’t go our way and agonise with some “coulda, woulda, shoulda” groaning and grumbling.
Read the full Wade vs Plunge post
This represents general information only. Before making any financial or investment decisions, I suggest you consult a financial adviser to take into account your personal investment objectives, financial situation and individual needs. Anyone looking to build a portfolio should seek financial advice to find out which strategy is right for them, if you are seeking financial advice in Canberra, then you should consider an adviser to help you identify your goals and put in place a reliable strategy to pursue them.
