-
▼
-
▼
This week’s Money Guy Episode is inspired by an article written by Nick Maggiulli Of Dollars and Data on February 19, 2019 titled “How to Invest a Lump Sum” that talks about what you should do if you suddenly experience a windfall of money.
Maybe you sold a big-ticket item, received an inheritance, sold a business, sold some real estate, or the scratch-off finally paid off. What do you do? And how do you invest your newfound earnings?
As it turns out, we also did a show on this very topic less than a year ago where we discussed whether or not you should take a lump sum or a dollar cost average approach to your investing. So, this week’s episode is a reboot that allows us to apply the same principles to the scenarios laid out by Nick Maggiulli.
Join us for this week’s episode of The Money Guy Show as we build a bridge between the analytics cited in Maggiulli’s article and the financial behaviors that impact your bottom line.
Here’s What You’ll Find Out in this Episode:
- The data assumptions used to determine whether lump sum investing or dollar cost investing performs better over time
- Why lump sum investing tends to outperform dollar cost averaging
- When dollar cost averaging outperforms lump sum investing
- The advantages of dollar cost averaging and the role it plays in your investment strategy
- Why investors aren’t particularly great at
- How the amount of your windfall does inform the potential impacts (positive and negative) of lump sum investing vs. dollar cost averaging and how you should approach investing a large sum of money
- Why it’s important to view historical investing performance over longer time horizons, not just in short 12-month cycles
- What the historical data and behavioral data confirms: there is a sweet spot for leveraging both dollar cost averaging and lump sum investing
Resources Mentioned in This Episode
- How To Know If You Should Invest In A Lump Sum or Dollar Cost Average
- Dollar-cost averaging just means taking risk later
- How To Invest A Lump Sum
Enjoy the Show?
Where You Can Watch and Listen:
Subscribe on these platforms or wherever you listen to podcasts! Turn on notifications to keep up with our new content, including:
- Episodes of The Money Guy Show every Friday
- Episodes of Making a Millionaire every other Monday
- Mini-shows every Wednesday
- Ask Money Guy Livestreams every Tuesday
- Tons of other fun content!
Free Resources
Free Resources
Financial Order of Operations®: Maximize Your Army of Dollar Bills!
Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and the order in which to...
Free Resources
Wealth Multiplier By Age
If you want to set yourself up for future success, find out how much you need to save every month to become a millionaire.
Free Resources
Car Buying Checklist
Here’s how you can buy a dependable car that won’t break the bank. Our free checklist walks you through the 20/3/8 rule and strategies to...
Articles
Articles
How To Factor Social Security Into Your Retirement Plan
Social Security provides over half of the income for some 42% of the population receiving benefits, which means Social Security is the primary income for...
Articles
How To Prepare for the Unexpected With Retirement
It’s extremely difficult, if not altogether impossible, to be completely prepared for retirement. No matter how much planning and preparation you do, something is bound...
Articles
How To Win With Money in Your 20s (and Set Yourself Up for Life)
The first decade of adulthood is one of the most important periods of your life. The course your life takes when you are younger can...
Financial FAQs
Courses & Tools
How about more sense and more money?
Check for blindspots and shift into the financial fast-lane. Join a community of like minded Financial Mutants as we accelerate our wealth building process and have fun while doing it.
Free Resources
Financial Order of Operations®: Maximize Your Army of Dollar Bills!
Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and the order in which to...
Free Resources
Wealth Multiplier By Age
If you want to set yourself up for future success, find out how much you need to save every month to become a millionaire.
Free Resources
Car Buying Checklist
Here’s how you can buy a dependable car that won’t break the bank. Our free checklist walks you through the 20/3/8 rule and strategies to...
Recent Episodes
It's like finding some change in the couch cushions.
Watch or listen every week to learn and apply financial strategies to grow your wealth and live your best life.
Episodes
From DINKs to Single Income and 2 Kids
Commission income, two kids, and a thin emergency fund - this is what the messy middle is all about. See how we help Tyler and...
Episodes
How This Disney Star Lost All Of Her Money
From a million-dollar year to $200K in debt, Disney star Christy Carlson Romano shares her wildest money mistakes and how she rebuilt from scratch in...
Episodes
Don’t Make This Huge Roth Mistake
When is a Roth conversion a mistake? We break down 5 situations, the 4 questions to ask first, and a case study saving one couple...