`... the source of your nest egg is not a factor in the decision to either LS or DCA.'.
555 wrote:This statement is silly. As an intellectual challenge, I'll leave people to figure out why.
tadamsmar wrote:The point is that the source of your invested dollars does not make them have a higher return, the source of your invested dollars does not make one dollar more valuable than another. The fact that some of your invested dollars were recently in the bank account of your rich uncle who was hit by a truck does not make those particlular dollars more or less subject to investment risk.
555 wrote:No, that totally misses the real point. Keep thinking about it. Hint: the past was once the future.
555 wrote:Well, have you figured it out yet? Ya need another hint?
tadamsmar wrote: I may get a lump sum soon from the sale of a farm.
555 wrote:So why didn't you already invest it yesterday? :roll: :roll: :roll: :roll:
I have not sold it yet. It may happen in the future. Perhaps you missed that.
(Now you are getting the hang of it! Just roll you eyes five times if you want to call my post ridiculous
I didn't miss a thing. You're expecting a lump sum. You plan to buy some stocks with it the day you get it. Why haven't you bought those stocks already? By now you could already have justed shifted some bonds to stocks in your tax-sheltered retirement account in anticipation of your expected lump sum.
But a surprise lump sum that you suddenly receive without warning is another matter.
You see, the souce of the lump sum really does
matter. It's not just a question of when the cash hits your account. It's the entire history of information that has been available to you at various times that matters (there are other complexities too).