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Drip feed investing or tactical?

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Comments

  • sixpence.
    sixpence. Posts: 295 Forumite
    Sixth Anniversary 100 Posts Name Dropper Combo Breaker
    firestone wrote: »
    think what the OP has learned is that like the book some people like to drip feed but more on here like to put a lump sum in.But perhaps the best advice is from the people who said they should do what they feel comfortable with as this will all come down to hindsight in the end - a lump sum invested this week may buy 10,000 shares/units but over a year using drip feeding you could end up with 12,000 units and be happy or get 8,000 and not.But its making that choice and living with it

    Cheers :) I agree that it's important to do what makes one feel comfortable, but it also important to dispel myths about money which aren't true and don't help us in the long term.

    What I am understanding from this thread is the following: Both methods carry risk but, generally speaking, investing a lump sum is more likely to produce higher returns over the long term - in more cases at least (obviously the market could always fall the day after I put it in!).

    What I might just do is invest a lump sum now and then hold some money aside in case there is a correction, but keep topping up that lump regardles, and then when a correction/crash happens take that as an opportunity to have money set aside to put in... this would hopefully secure a higher gain when the market picks up.
  • coastline
    coastline Posts: 1,662 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    sixpence. wrote: »
    Cheers :) I agree that it's important to do what makes one feel comfortable, but it also important to dispel myths about money which aren't true and don't help us in the long term.

    What I am understanding from this thread is the following: Both methods carry risk but, generally speaking, investing a lump sum is more likely to produce higher returns over the long term - in more cases at least (obviously the market could always fall the day after I put it in!).

    What I might just do is invest a lump sum now and then hold some money aside in case there is a correction, but keep topping up that lump regardles, and then when a correction/crash happens take that as an opportunity to have money set aside to put in... this would hopefully secure a higher gain when the market picks up.

    There was very little volatility in the USA last year so we might be in for some soon.?

    https://www.advisorperspectives.com/images/content_image/data/36/36054e6065bfb26049f5b0e8f1278087.png

    2017 was one of the lowest on record stretching all the way back to 1875.
    I've been keeping records ever since..:D

    https://pbs.twimg.com/media/DRhKHGQVQAAYwy-.jpg
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