💰 Dollar-Cost Averaging vs. Lump Sum Investment: Which Yields Greater Returns? 📈

Hi, I’m Laurent Munier, and today we're diving into two popular investment strategies: Dollar-Cost Averaging (DCA) and Lump Sum Investment. Curious about which strategy can maximize your earnings? Let's explore the data and uncover the pathway to greater financial growth.

🔍 What is Dollar-Cost Averaging?
Dollar-Cost Averaging (DCA) involves investing smaller sums of money regularly, like $20, $50, or $100 at a time. This strategy helps you buy into the market at different prices, aiming to average out your investment cost over time.

💼 What is a Lump Sum Investment?
A Lump Sum Investment means putting a larger amount of money, such as $10,000, into the market all at once. You let it grow over time and repeat the process annually or as your finances allow.

📊 What Does the Data Say?
Based on data from the Royal Bank of Canada over the past 30 years, lump sum investing has consistently outperformed DCA. Here's why:

- **Rising Markets**: Markets generally trend upward over time. Lump sum investing allows you to benefit more from this growth.
- **DCA Costs**: With DCA, you might end up buying at higher average prices over time.

However, during volatile periods, like the global financial crisis, DCA can offer more protection against market drops, helping you avoid emotional decision-making.

📈 During Falling Markets:

- **DCA**: Shielded investor holdings better than lump sum. DCA investors broke even faster after market lows.
- **Lump Sum**: Took longer to recover initial investment during downturns.

🚀 During Rising Markets:

- **Lump Sum**: Outperformed DCA immediately following market lows.
- **DCA**: Still provided commendable returns through a cautious approach.

💡 Final Notes:
While lump sum investing typically yields higher returns, DCA offers a less intimidating entry into the market and a more consistent investment journey. Ultimately, both strategies have their merits, and the key is to start investing.

👍 If you found this video helpful, please like, comment, subscribe, and share to help us reach more viewers. Thanks for watching, and see you next time!

Contact & More Info: https://safepacific.com/contact/

💰 To get started investing with Safe Pacific Financial Inc in Canada, contact us at: https://safepacific.com/should-you-in...
LinkedIn:   / safe-pacific-financial  
Instagram:   / safepacific