Shopify lets staff decide cash-stock pay mix as shares dive

Re:Shopify lets staff decide cash-stock pay mix as shares dive by bumby on Friday September 16, 2022 @11:04AM (#32867004)

Isn't this dependent on timing and isn't part of the point of DCA to mitigate timing risks?

E.g., If I loaded my 401k just before the bottom fell out of the market, you need a much higher proportion of good years to dig out from that hole. With DCA, you would have a shallower hole to climb out of.

(Possible I misinterpreting what you meant, or that I am just not financially saavy enough to chime in)

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Re:Shopify lets staff decide cash-stock pay mix as shares dive by UncleMeat on Friday September 16, 2022 @11:47AM (#32867758)

But on average the market goes up. You can lose with lump sum investment as early as possible. But you will be more likely to lose by waiting and only slowly purchasing in. The value of DCA is in emotional regulation since it softens swings at the cost of reduced expected value.

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Re:Shopify lets staff decide cash-stock pay mix as shares dive by bumby on Friday September 23, 2022 @09:58AM (#32952024)

Doesn’t this ignore the asymmetry in risk? The colloquialism is that a bull climbs the stairs and a bear jumps out the window. Implying there’s much more downside risk to bad timing than upside potential. Is there work on a risk-based comparison between the two?

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