According to that research it all comes down to time in market....

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    According to that research it all comes down to time in market. Rather than splitting payment across a protracted period.

    So using your example, it would be a lump sum investment. The total amount you are willing to invest.

    If you then earn more money it would be beneficial to invest straight away, as again this reflects time in the market.

    The only thing I would say about the report is that it doesn't consider one important thing. That is, most people who invest small amounts over time aren't doing so because they have a large sum of money and are investing it across a period to counter ups and downs.

    They are investing a small amount over time because they are investing as they come into possession of the requisite capital.

    The report seems to narrowly define dollar cost averaging as being the method employed when a person has a large amount of capital but chooses not to invest in one big lump sum. This is a foolish assumption in my eyes... as most employ so called dollar cost averaging as a necessity.

    I guess for the report they only equate dollar cost averaging to where the person does have a large capital base and only investing small amounts over time.

    In reality, it's really just stating time in the market beats timing the market, whether that be in one big lump sum or smaller amounts, which become available as you work etc.
 
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