Amount equal to 100% current investments....would you re-invest in lump sum or drip feed ....

Mr.Saver

sabretoothtigger said:

The ultimate purpose of money is security, thats its best use.

I disagree. Money may provide securities (house, food, heat, etc.) for someone, but it could also mean yachts and private jets for others. It depends on the person's financial and social status.

Mr.Saver

jelajelavic said:

Mr Saver, yes im aware and agree that statistically youre better with a lump sum is more likely to be better over a long time, but is that more when comparing investing for 10 years vs drop feeding for 10 years. In this example it would be lump sum or drop feed to that same lump sum amount over 12 months then leave long term (a hybrid of sort)

Also the next 12 months may not be as normal (I know nobody knows the answer to that but opinions are interesting)

A study conducted by Vanguard can be found here: https://personal.vanguard.com/pdf/ISGDCA.pdf

...
we compare the historical performance of immediate and systematic
investing across three markets: the United States, the United Kingdom, and Australia.
For the systematic plan, we invest the cash in a balanced 60% stock/40% bond portfolio
in 12 equal monthly installments.
...
In each market, immediate investment led to greater portfolio values approximately
two-thirds of the time. On average, immediate investment outperformed systematic
implementation by a high of 2.39 percentage points in the United States and a low of
1.45 percentage points in Australia.
...

Mr.Saver

DiggerUK said:

OP,  Mr.Saver mentions acceptance of risk, it's a popular mantra that does and doesn't mean something. What is more pertinent here is if what you do is wise or unwise. 

One thing is for sure, if you fall in to the trap of believing things will only continue getting better, then you will find yourself ill prepared for anything similar to  2007/8. Investment returns for now are good, and mortgage rates are cheap, what will you do if that changes.
The major problem for most people in 2007/8 was that they had not stress tested their finances and kept one eye on such a situation happening.

That's easy to find out. If interest rate goes up to 10%, 15% or even 20%, how much does OP need to repay each month? Can OP afford it from the non-investment income? If the answer is yes, then there's nothing to worry about.