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A comment on More Men Are Addicted to the 'Crack Cocaine' of the Stock Market. Parent comment

Re:More Men Are Addicted to the 'Crack Cocaine' of the Stock... by recursivecaveat on Tuesday December 24, 2024 @05:02PM (#42505249)
A year is pretty extreme. If you cut a lump sum into a series of transactions over a couple weeks or even days it is just about the least expensive way to exchange earning potential for reduced volatility. You miss out on like 2 weeks of earnings in exchange for a huge reduction in the chance that you buy in and are immediately down 2% or something.
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Re:More Men Are Addicted to the 'Crack Cocaine' of the Stock... by TuringNYC on Tuesday December 24, 2024 @05:54PM (#42505539)
You can do both. You can invest the entire amount, but make it short/medium bond heavy on Day 1. As you go thru the year, you rotate more and more of your fixed income allocation towards equity until you reach your target equity %. This is relevant if, for example, you downsized your home or received a retirement payout.
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Re:More Men Are Addicted to the 'Crack Cocaine' of the Stock... by patrick451 on Tuesday December 24, 2024 @07:25PM (#42505974)
There's just as much probability that you miss out on a big swing up as there is that you miss a big a drop.
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Re:More Men Are Addicted to the 'Crack Cocaine' of the Stock... by recursivecaveat on Tuesday December 24, 2024 @08:29PM (#42506223)
It's not the big swings you're trying to avoid, you're just trying to average together a bunch of interday minor ups and downs so your starting price is not as volatile.
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