A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
Exactly why i enjoy my day to day market decisions being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/ analvsis they have, it's near impossible to not outperform, been using a portfolio-coach for over 2years+ and I've netted over 400k.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Several years ago, your videos inspired me to kickstart my son's investing, consisting of a custodial Roth IRA, a 401(k), and savings. Portfolio's worth over $50K. Not too shabby a start for a 19-year-old now serving in the military. We DCA. Thank you Marco!
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
I like to keep a small "in case the market crashes" fund to try and take advantage of the low prices. When the market goes south, I use that money spread out over the following months buying my targeted stocks on low days. on top of my usual DCA, They keep dropping and I keep buying. I'm still in on Renewable Energy, EV, Tech, Health.coins too gotta be greedy when others are fearful. At this point I'm grateful for my FA Susan Kay Mack. Already with a 7 figure portfolio but I have no doubt investing more.
Same. I teetle on the premise that the market can and will crash at some point, as well as the notion that many individuals miss out on gains due to actually NOT being in the market and waiting for the chance of a crash. Perhaps it's wise to do both partially
I funny enough do both. I lump sum every year in January on my Roth IRA & DCA into my Roth 401k every 2 weeks through my paycheck. I’ll share my findings once we’re both in our 70’s Marko!!
I have to admit that I'm not sure if investing is a good idea right now. Take note of how often things go wrong. I've read charts and projections from well-known investors from the past and present, but because I still have some time before I retire, I'm still seeking for a better way to invest my money. I want to create a strong and dependable portfolio to provide passive income.
The outstanding catch-up measures currently in place are unquestionably due to the Fed, as they were first too sluggish to contain inflation. The epidemic, supply-chain concerns, and the situation in Ukraine are all factors in the looming perfect storm of inflation. Not to mention the sharp increase in housing expenses, another factor that makes it challenging for the Fed to control inflation. To sum up, if you have the cash, get rid of it right away to benefit from the high savings rate.
This is my second video that I watch on your channel and I am obsessed . I am new to the finance world. Really enjoy how you simplify things and I enjoy the white board . Appreciate your time and effort
"Workers" (us? 🤣) are saving each month, but they could invest at the right time in the correct asset.. nobody is "forced to DCA". Those who DCA are buying at higher prices than normal and so make less over the span of a lifetime... Yeah I know it's bullshit to "want to time the market" for normal people, but once it's cheap just buy with debt and pay that debt off afterwards. It's easy and the better way of getting some funds for retirement (as long as you get into ETFs and don't put all eggs in one basket!) 😉
@@UzAtTheGeek lmao😂horrible take. It’s already been proven statistically time and time again DCA and lump summing money as soon as you get it has offered higher returns. Simply…you cannot buy stocks at the price they were 20 years ago, why is this….. if you followed your genius advice in the last 4 or so years there were only very mild downturns after massive bull runs. You’re going to wait for a 5% dip after stocks have already gone up 50%?😂you’re mad genius. I like investors like you, you decide to finally buy into a stock helping drive up the price for me when I’m already up huge on it😘Also you’re over here saying buy with debt😂😂😂hahaha nice. I’m buying with cash.
I just discovered this channel and I love it. II have been watching video after video as I play with my son (good perks about being a teacher is spending the summer with my baby boy). Anyways, I am so thankful about people like Marko who teach regular people like us some important knowledge that otherwise would not be available. People like Marko are motivated to do this for something other than money. They live a life with a purpose and in doing so they are a blessing to our world.
I use a combination of the two. I make regular investments into my IRA on each check, and if there are times I can put in extra due to more money available I will make a larger investment for that check. I also don't invest in individual stocks, I invest in various mutual funds and ETFs that mix my exposure between US stocks, international stocks, and bonds.
I dollar cost average a set amount every month automatically into a total market index fund. But I also have a large pile of cash sitting in short-term treasuries that I would love to throw at a 20%+ crash in the market. It's there as a 6-month emergency fund, but I'll cut it in half for for a massive correction or crash.
Typically I lump sum invest but diversify my portfolio between commodities, blue chip stocks, high dividend yield stocks, and so much more. I am rather new to investing, but I feel that works for me.
Also most people have lower returns than the idexes they track because they keep messing with things, changing their minds, and going in and out of the market. Factoring that in DCA looks pretty strong.
How about a combo? Husband is employed by a corporation and is doing DCA on a 401k every other week (26x a year). Wife is self-employed and does an annual lump sum into a SEP account based on an amount suggested by their CPA in order to reduce their taxable income. Not that I know anyone who might do that 😏.
thanks for another simplistic and practical explanation of a fundamental concept. personally, i DCA my roth and my daughters roth it is a sensible way to prevent the procrastination that we all do. like you i have a family, side hustles, main job, and hobby. God bless and keep going!
Hi Marko, thanks for this. You seem well versed in investing and I have one question. As a foreigner in the States and given the times, would it be better to go into into real estates or stocks. I have been confused on the better option and where and how to go about this. Can't seem to find the most appropriate and of utmost importance is higher income and a less time intensive option.
Why not both? With the present economy, you should never forget to diversify. Do not put all your eggs in one basket. As one who has been into Real Estates for as long as I can remember, I made my first million late last year from stocks alone (got the services of an expert because I also have time constraints). I also experiment with a couple of other things. Hard to imagine that I had initially refused to try out new possibilities. Good luck.
@@marlenaaj ...Very sound and realistic. I too have been into both for sometime now and though I won't say I have lost a fortune, I have squandered quite a lot... You mentioned using pros, if its not a problem. do you mind telling who you used or recommending a good one? I could definitely use the help of one right now... I look forward to you replying...
@@sakhalittle9206 Funny enough, I can honestly relate. I don't know if I am permitted to go into details here, but mine is "Adam Keith Abraham" and you could look him up . I'm not so sure he takes on new people right now, but you could try.
@@marlenaaj casually strolled into this thread and boom, I know this funny man. Once attended a fundraiser he was also in attendance here in Vancouver,, calm looking man with with a funny accent,, He's in the States though, I doubt he works with non residents,,,
No doubt that lump sum investing outperforms in your example in a rising market. But what isn't mentioned is the average investor doesn't have a large lump sum to make ($100,000 in your example). So for most people, DCA is the only option if they want their money to start working right away. Also, I kept thinking about the Nikkei index as a reason for DCA and was like "why doesn't Marko cover the advantage of DCA as it relates to the Nikkei" and then BOOM, he has an outtake at the end about the Nikkei! I'm guessing someone would be up about 5% long term over the last 30 years of DCA'ing the Nikkei. Whereas as Marko showed, you could possibly be up 0% after 30 years of Lump Summing. Big difference over 30 years!
Solid video, Marko. It is proven that dollar cost averaging just beats lump sum investing.. So, it will be wise for any and all investors to just keep it simple and DCA!
"It is proven that dollar cost averaging just beats lump sum investing." No. Is that seriously what you got out of this? It all depends what you are investing in and if you are cherry picking a starting point or not. On average, lump sum is best simply due to time in the market. And, if there are any dividends being paid out, your dividend cash-flow is obviously way higher than DCA because you have the whole thing invested at once. This then adds to the chance of beating DCA, especially if you are reinvesting dividends. That said, most have to DCA as they are investing every payday or every month and not investing some huge some at one time. Now, if you sell one investment and move into another one are you going to just buy the next investment? Or slowly trickle the money that you received from the previous sell into the new investment? Three scenarios - market moving down, flat market, market moving up - the only time DCA likely beats lump sum is downward moving markets. Flat markets and markets trending up, lump sum beats. Then, if things going forward end up anything like the past, markets trend up over time. Just put the money to work when you have it to invest, less you are in a clear bubble (tech bubble was obvious, financial crash was pretty obvious too)
Great video, Marko! Here’s what I would do in this market if I were debating between DCA vs Lump Sum. I’d dollar cost average, and the cash I was sitting on, I’d put it in a HYSA and earn 4-5% return while that money is sitting on the sideline.
So what if you just rolled a work based 401k to an IRA and the equities were liquidated, so now you are sitting on a lump sum of cash in an IRA account which can't be moved to another interest bearing account?
Honestly DCA takes a lot of the stress out of investing. If the market is down, it's ok, you'll buy more next month. It's especially effective for volatile assets like Bitcoin.
Hey Marko i'm 18 and am gonna start investing because of you! Looking at DCA in index funds to start safe whilst I don't know alot thank you for your videos!
I usually do a lump sum in my Roth,but dca in my 401k. In my taxable account I wait for opportunities and only buy on super red days.i also do the wheel strategy for income and limited stock options
Glad you added those last bits of information in the end, because that is what I was going to add. You can place a large lump sum on a few stocks and get crushed for decades or not at all if those companies goes under. I guess you forgot to emphasize that both strategies if, diversified and placed for a long period of time, would be way better then keeping your money in the bank. Overall the average investor would probably benefit from DCA into ETFs like VOO to prevent negative emotional decisions like buying high and selling low.
i just put in £5 daily into an ETF. I now do not worry about if it goes down as i know in time i will get more shares for my money. The market does not just go up. It tends to up and down. The biggest mistakes investors do is put a large lump sum in the market and then the market crashes they then get scared and sell at a loss. They then do it again and get skittish making the same mistake. Psychologically people will not be so woried when they are only investing small amounts they put in and forget. 20 -40 years later they notice that with the value of compound interest and DCA they are now very rich.
Lump sum in the beginning then DCA as you earn money. I DCA every week. If I received a large sum of money I’d invest all of it after taxes then continue my weekly DCA.
As a 36 year old who graduated college in 2008, I also have a VERY abiding fear of all the things that happened back then, and it has guided a lot of the professional and financial decisions I've made in my life as an adult.
I used to DCA years ago, now I just turn x amount of cash into an investment on a monthly basis, selling a small percentage a year or two later. Time > Timing
I started when I was 12 and wrote two books on investing when I was 13 for self education. Been through 2001, 2008, and 2022 downturns. What I have come to know is that pure math calculations ignores your well-being to much, DCA is the way to go for me with my risk tolerance profile.
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Sir, congratulations on the channel I love it, if you could please make a video on the How to benefit and how be will be affected with the with the situation of the petro Dolla
How do these concepts have any merit given the new economy is based on the private decisions from the WHO and the WTO? Since I will never get vaccinated, and Bill Gates and the WHO are always talking about "the next pandemic", so how long until the next "lab leak", and further proof that capitalism is dead returns w/their further lockdowns and censoring and ruining of lives?
DCA is solid right now while holding some of the cash ready to lump sum with how I personally see the market going short term I figure: best to DCA discipline and have a little cash reserve ready to buy and CAPTURE that discount rate (again not betting the whole farm, just enough where you want to take that lump sum gain/risk) and if it crashes well if it’s only 5-10% Great it’s just still long term at 26 years old for myself
Despite the fact that stock prices fluctuate, what is the best method for capitalizing on the current market? I'm still undecided about investing $400k in my stock portfolio.
The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Also, the average person doesn’t add $25k a quarter. They usually invest a hundred or two every two weeks. The averages don’t look the same with a quarterly example you give.
not sure if you have a video on REITs but quality triple net lease reits could be on discount this year. good way for most people to diversify into real estate
Well, lump sum in one basket (nikkei) can indeed put you in a bad spot. Lump sum diversified? I didn't see you specifically cover that in the video and I presume it would make a big difference. In any case, I appreciate your channel and content. I always learn great things from it. Thank you!
It doesn’t have to exclusively be a dollar cost average or lump sum investment. You can for example invest 50% of funds now and dollar cost average the rest.
I have no idea what the market will do between truly impressive technology rapidly evolving and a broken system that constantly borrows more and more from the future. That said, I use a hybrid strategy. When the market is cheaper, I increase my contributions and when it's expensive I decrease them. I do this across multiple accounts with low fee ETFs and Bonds and my work matches up to a certain amount of my RRSP which is essentially free money.
Hi Marco, awesome work, enjoy your videos. One thing to note about the last example of the Japanese index - what would happen to the US and world economy if the SPY/VTI remained in the red for 2 consecutive years? Not even talking about 10 years below previous valuation.
I used to explain my strategy in the comment section of various financial youtube videos, but every time I explained it, in a matter of two weeks there was no feedback, no response, nothing. So yeah, I will never explain it again. Nice video though.
Regarding timing for a lump sum - I'm looking to superfund a 529 account - would you lump sum invest today in a 529 account or wait a few months given the current economic conditions to see if the market goes down more?
Its a tricky one? I have several single l stocks and also a S&P500 ETF. I try to buy whenever one of stocks is low as there's usaly one or two that aren't doing quite as well as the rest to lower the average of that purchase prise. Then when it flips I'll do the same with the other stocks. I think its a good idea to have exposure to several sectors so you can take advantage of low sentiment in any one of those sectors as usually when one is high one will be lower if that makes sense?
About to inherit and I've been debating on whether I should drop it all in at once or spread it out over a year or so. I was leaning towards lump sum but you may have just changed my mind.
I don't know how much you are inheriting or how much you are already contributing to your retirement accounts. One option is to max out your contributions to your retirement accounts and live off the inheritance as long as it lasts and then go back to your normal contribution amounts. For example, if you inherit $99,000 and are currently contributing $500 per month to a 401k, you could crank up your monthly contribution to $1875 per month for the next 6 years. If you are married, you and your spouse can max out your contributions for the next 3 years. For simplicity, I am assuming you have already maxed out your IRA's and you are under age 50 and ignoring interest on the inheritance, but you get the idea. This gets a lot of money into tax advantaged accounts quicker and also uses DCA.
There is a company that pays 3% of your salary and holds it for you until the first week of Jan. They used to do it per pay period (DCA). There is no choice when that investment happens. I would love to find out it is illegal. I am sure it is not benefiting the employees. Oh, if you get fired or leave the company you get nothing. You have to be there in Jan for the payout or it is all gone. The 3% is not a match. It is given regardless of your contribution.
So timing of the market is required in both strategies really. There’s no edge here. Still blind faith. The edge to be gained is investing with the right strategy that suits your personality because if you can’t handle the emotional roller coaster, exiting the market is your only choice to end the pain.
DCA does not have to be timed perfect as apposed to lump sum. If you are going all in, you better hope the market doesn't correct or are near resession. I rather sleep easy at night and DCA
i always intuitively understood dca was bullshit. it just doesn't make any logical sense. if you have a lump sum of money invest it now. however as a practical matter, dca is just how people usually invest. it's easier to invest 200 a month than have a large sum available.
I'm 25, I have a Roth IRA, & a brokerage. I have QQQM in them both. I'm considering adding in VOO & SCHD. But also 1 mutual fund. I'm going to do research but if anyone knows the best one LONG TERM, drop it down in the comments. Thank ya!
I've also always dollar cost averaged for about 7-8 years. That seemed to make sense to me since I'm just taking a few hundred dollars out of my pay check each month. It's predictable to budget for, and if I start making more money then I could adjust that percentage of income that I invest each month. My question is where does the money come from if I wanted to lump sum invest? Wouldn't I be holding cash for some period of time in order to build up the lump sum? Why not just invest those dollars as soon as they are available instead of holding onto them in the hopes of timing the market? That lump sum scenario only makes sense in my mind if I was gifted some large sum of money.
I think in his example, he referenced getting the lump sum money from an annual work bonus, inheritance, or some other type of windfall. Hope that helps.
I only DCA into a conservative 60/40 portfolio: 60% GME, 40% AMC
Hahaha
Meme portfolio
🤣🤣
😂🎉
Far too conservative.
Need more risk in your portfolio.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
Exactly why i enjoy my day to day market decisions being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/ analvsis they have, it's near impossible to not outperform, been using a portfolio-coach for over 2years+ and I've netted over 400k.
Please excuse my curiosity, would you mind sharing more info on your advisor? I’m in dire need of guidance
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Several years ago, your videos inspired me to kickstart my son's investing, consisting of a custodial Roth IRA, a 401(k), and savings. Portfolio's worth over $50K.
Not too shabby a start for a 19-year-old now serving in the military. We DCA. Thank you Marco!
Awesome!
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
I like to keep a small "in case the market crashes" fund to try and take advantage of the low prices. When the market goes south, I use that money spread out over the following months buying my targeted stocks on low days. on top of my usual DCA, They keep dropping and I keep buying. I'm still in on Renewable Energy, EV, Tech, Health.coins too gotta be greedy when others are fearful. At this point I'm grateful for my FA Susan Kay Mack. Already with a 7 figure portfolio but I have no doubt investing more.
Same. I teetle on the premise that the market can and will crash at some point, as well as the notion that many individuals miss out on gains due to actually NOT being in the market and waiting for the chance of a crash. Perhaps it's wise to do both partially
out of curiosity I did read about Susan Kay Mack on the web.,she has a great resume.
An everyday millionaire. Well done 🙌
Did a quick web search, she has a pretty decent bio, I wrote her and I'm waiting on her reply.
TIP for everyone encountering names in the comments: it's a SCAM.
I funny enough do both. I lump sum every year in January on my Roth IRA & DCA into my Roth 401k every 2 weeks through my paycheck. I’ll share my findings once we’re both in our 70’s Marko!!
Marko, i'm digging the Patagonia vest today. Keep up the great content!!
I have to admit that I'm not sure if investing is a good idea right now. Take note of how often things go wrong. I've read charts and projections from well-known investors from the past and present, but because I still have some time before I retire, I'm still seeking for a better way to invest my money. I want to create a strong and dependable portfolio to provide passive income.
The outstanding catch-up measures currently in place are unquestionably due to the Fed, as they were first too sluggish to contain inflation. The epidemic, supply-chain concerns, and the situation in Ukraine are all factors in the looming perfect storm of inflation. Not to mention the sharp increase in housing expenses, another factor that makes it challenging for the Fed to control inflation. To sum up, if you have the cash, get rid of it right away to benefit from the high savings rate.
This is my second video that I watch on your channel and I am obsessed . I am new to the finance world. Really enjoy how you simplify things and I enjoy the white board . Appreciate your time and effort
Thanks so much!!
Workers earn money each paycheck, meaning they’re basically forced to DCA unless you stumble across a huge pile of cash.
"Workers" (us? 🤣) are saving each month, but they could invest at the right time in the correct asset.. nobody is "forced to DCA". Those who DCA are buying at higher prices than normal and so make less over the span of a lifetime...
Yeah I know it's bullshit to "want to time the market" for normal people, but once it's cheap just buy with debt and pay that debt off afterwards. It's easy and the better way of getting some funds for retirement (as long as you get into ETFs and don't put all eggs in one basket!) 😉
@@UzAtTheGeek lmao😂horrible take. It’s already been proven statistically time and time again DCA and lump summing money as soon as you get it has offered higher returns. Simply…you cannot buy stocks at the price they were 20 years ago, why is this….. if you followed your genius advice in the last 4 or so years there were only very mild downturns after massive bull runs. You’re going to wait for a 5% dip after stocks have already gone up 50%?😂you’re mad genius. I like investors like you, you decide to finally buy into a stock helping drive up the price for me when I’m already up huge on it😘Also you’re over here saying buy with debt😂😂😂hahaha nice. I’m buying with cash.
@@UzAtTheGeek great advice
I just discovered this channel and I love it. II have been watching video after video as I play with my son (good perks about being a teacher is spending the summer with my baby boy). Anyways, I am so thankful about people like Marko who teach regular people like us some important knowledge that otherwise would not be available. People like Marko are motivated to do this for something other than money. They live a life with a purpose and in doing so they are a blessing to our world.
Thanks for an awesome video! DCA normally and then lump sum when there are 15-30% down is what i'm thinking
I use a combination of the two. I make regular investments into my IRA on each check, and if there are times I can put in extra due to more money available I will make a larger investment for that check.
I also don't invest in individual stocks, I invest in various mutual funds and ETFs that mix my exposure between US stocks, international stocks, and bonds.
I dollar cost average a set amount every month automatically into a total market index fund. But I also have a large pile of cash sitting in short-term treasuries that I would love to throw at a 20%+ crash in the market. It's there as a 6-month emergency fund, but I'll cut it in half for for a massive correction or crash.
In this market I would go with a hybrid approach. Lump sum a decent amount and DCA the rest.
Typically I lump sum invest but diversify my portfolio between commodities, blue chip stocks, high dividend yield stocks, and so much more. I am rather new to investing, but I feel that works for me.
Thanks Marko I have asked this questions myself recently , I’ll tune in later tonight when I have some free time !
Also most people have lower returns than the idexes they track because they keep messing with things, changing their minds, and going in and out of the market. Factoring that in DCA looks pretty strong.
How about a combo? Husband is employed by a corporation and is doing DCA on a 401k every other week (26x a year). Wife is self-employed and does an annual lump sum into a SEP account based on an amount suggested by their CPA in order to reduce their taxable income.
Not that I know anyone who might do that 😏.
thanks for another simplistic and practical explanation of a fundamental concept.
personally, i DCA my roth and my daughters roth
it is a sensible way to prevent the procrastination that we all do.
like you i have a family, side hustles, main job, and hobby.
God bless and keep going!
I do both. I lump sum all of my retirement accounts and DCA all of my wife’s.
Hi Marko, thanks for this. You seem well versed in investing and I have one question. As a foreigner in the States and given the times, would it be better to go into into real estates or stocks. I have been confused on the better option and where and how to go about this. Can't seem to find the most appropriate and of utmost importance is higher income and a less time intensive option.
Why not both? With the present economy, you should never forget to diversify. Do not put all your eggs in one basket. As one who has been into Real Estates for as long as I can remember, I made my first million late last year from stocks alone (got the services of an expert because I also have time constraints). I also experiment with a couple of other things. Hard to imagine that I had initially refused to try out new possibilities. Good luck.
@@marlenaaj ...Very sound and realistic. I too have been into both for sometime now and though I won't say I have lost a fortune, I have squandered quite a lot... You mentioned using
pros, if its not a problem. do you mind telling who you used or recommending a good one? I could definitely use the help of one right now... I look forward to you
replying...
stocks are your best bet atm, the housing market are currently a mess
@@sakhalittle9206 Funny enough, I can honestly relate. I don't know if I am permitted to go into details here, but mine is "Adam Keith Abraham" and you could look him up . I'm not so sure he takes on new people right now, but you could try.
@@marlenaaj casually strolled into this thread and boom, I know this funny man. Once attended a fundraiser he was also in attendance here in Vancouver,, calm looking man with with a funny accent,, He's in the States though, I
doubt he works with non residents,,,
No doubt that lump sum investing outperforms in your example in a rising market. But what isn't mentioned is the average investor doesn't have a large lump sum to make ($100,000 in your example). So for most people, DCA is the only option if they want their money to start working right away. Also, I kept thinking about the Nikkei index as a reason for DCA and was like "why doesn't Marko cover the advantage of DCA as it relates to the Nikkei" and then BOOM, he has an outtake at the end about the Nikkei! I'm guessing someone would be up about 5% long term over the last 30 years of DCA'ing the Nikkei. Whereas as Marko showed, you could possibly be up 0% after 30 years of Lump Summing. Big difference over 30 years!
Solid video, Marko. It is proven that dollar cost averaging just beats lump sum investing.. So, it will be wise for any and all investors to just keep it simple and DCA!
"It is proven that dollar cost averaging just beats lump sum investing."
No. Is that seriously what you got out of this?
It all depends what you are investing in and if you are cherry picking a starting point or not.
On average, lump sum is best simply due to time in the market. And, if there are any dividends being paid out, your dividend cash-flow is obviously way higher than DCA because you have the whole thing invested at once. This then adds to the chance of beating DCA, especially if you are reinvesting dividends.
That said, most have to DCA as they are investing every payday or every month and not investing some huge some at one time.
Now, if you sell one investment and move into another one are you going to just buy the next investment? Or slowly trickle the money that you received from the previous sell into the new investment?
Three scenarios - market moving down, flat market, market moving up - the only time DCA likely beats lump sum is downward moving markets. Flat markets and markets trending up, lump sum beats. Then, if things going forward end up anything like the past, markets trend up over time. Just put the money to work when you have it to invest, less you are in a clear bubble (tech bubble was obvious, financial crash was pretty obvious too)
I've traditionally done DCA, but as we have more money in our reserves I may now do some LSI for some instances. Good stuff as always!
Good stuff!
Great video, Marko! Here’s what I would do in this market if I were debating between DCA vs Lump Sum. I’d dollar cost average, and the cash I was sitting on, I’d put it in a HYSA and earn 4-5% return while that money is sitting on the sideline.
exactly what i'm doing
@@dancalzone551 nice!
I do something similar
@@dancalzone551 Exactly the same. Sitting on 105k in my HYSA at 3.8% and tik away 2k a month into VTI
So what if you just rolled a work based 401k to an IRA and the equities were liquidated, so now you are sitting on a lump sum of cash in an IRA account which can't be moved to another interest bearing account?
Honestly DCA takes a lot of the stress out of investing. If the market is down, it's ok, you'll buy more next month.
It's especially effective for volatile assets like Bitcoin.
Hey Marko i'm 18 and am gonna start investing because of you! Looking at DCA in index funds to start safe whilst I don't know alot thank you for your videos!
I usually do a lump sum in my Roth,but dca in my 401k. In my taxable account I wait for opportunities and only buy on super red days.i also do the wheel strategy for income and limited stock options
Thank you immensely; I am reaching my kids finance through your videos. This is how to plant the seeds of eternal financial freedom!
Priceless
DCA is appropriate only on individual stocks, and lump sum is perfect on s&p500 or index funds. Based on my experience btw.
Glad you added those last bits of information in the end, because that is what I was going to add. You can place a large lump sum on a few stocks and get crushed for decades or not at all if those companies goes under. I guess you forgot to emphasize that both strategies if, diversified and placed for a long period of time, would be way better then keeping your money in the bank. Overall the average investor would probably benefit from DCA into ETFs like VOO to prevent negative emotional decisions like buying high and selling low.
Very informative channel. Keep doing what you do,Marko,I'm learning as much as I can
I appreciate that!
Straight banger of a video. Thanks for all you do Marko
DCA baby. Set and forget
i just put in £5 daily into an ETF. I now do not worry about if it goes down as i know in time i will get more shares for my money. The market does not just go up. It tends to up and down. The biggest mistakes investors do is put a large lump sum in the market and then the market crashes they then get scared and sell at a loss. They then do it again and get skittish making the same mistake. Psychologically people will not be so woried when they are only investing small amounts they put in and forget. 20 -40 years later they notice that with the value of compound interest and DCA they are now very rich.
Lump sum in the beginning then DCA as you earn money.
I DCA every week. If I received a large sum of money I’d invest all of it after taxes then continue my weekly DCA.
As a 36 year old who graduated college in 2008, I also have a VERY abiding fear of all the things that happened back then, and it has guided a lot of the professional and financial decisions I've made in my life as an adult.
I used to DCA years ago, now I just turn x amount of cash into an investment on a monthly basis, selling a small percentage a year or two later. Time > Timing
Hi Marko, will you ever make a video on how to deal with a faliure of FIAT in the future?
Great video as always Marko! I’m with you on DCA. Thank you for sharing your wisdom!
Much appreciated!
I started when I was 12 and wrote two books on investing when I was 13 for self education. Been through 2001, 2008, and 2022 downturns. What I have come to know is that pure math calculations ignores your well-being to much, DCA is the way to go for me with my risk tolerance profile.
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Sir, congratulations on the channel I love it, if you could please make a video on the How to benefit and how be will be affected with the with the situation of the petro Dolla
How do these concepts have any merit given the new economy is based on the private decisions from the WHO and the WTO? Since I will never get vaccinated, and Bill Gates and the WHO are always talking about "the next pandemic", so how long until the next "lab leak", and further proof that capitalism is dead returns w/their further lockdowns and censoring and ruining of lives?
(Which Is Best?) GOLD burred in a SAFE location.
DCA might be the only choice for most based on not having a lump sum. At the end of the day both are good to increase your wealth.
DCA is solid right now while holding some of the cash ready to lump sum with how I personally see the market going short term
I figure: best to DCA discipline and have a little cash reserve ready to buy and CAPTURE that discount rate (again not betting the whole farm, just enough where you want to take that lump sum gain/risk) and if it crashes well if it’s only 5-10% Great it’s just still long term at 26 years old for myself
Despite the fact that stock prices fluctuate, what is the best method for capitalizing on the current market? I'm still undecided about investing $400k in my stock portfolio.
The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
Pls who is this coach that guides you? I’m in dire need of one
My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
This is why I keep a nice amount of cash on the side but mainly DCA.
Also, the average person doesn’t add $25k a quarter. They usually invest a hundred or two every two weeks. The averages don’t look the same with a quarterly example you give.
If we DCA, daily weekly monthly or yearly?
I DCA weekly
not sure if you have a video on REITs but quality triple net lease reits could be on discount this year. good way for most people to diversify into real estate
Marko just gets me
Thank you as always
My pleasure!
Wow... I remember when you touched this subject when you were 32.
Fantastic breakdown!
Glad it helped!
Great video! Hvala Marko 😊
Great content. Thank you!
I do DCA , but have 20% cash/cash equivalent if the market drops over 5% in a day I throw that 25-50% of that into the market
i have been investing since 19 and it is really starting to pay off now that I am 23.
Well, lump sum in one basket (nikkei) can indeed put you in a bad spot. Lump sum diversified? I didn't see you specifically cover that in the video and I presume it would make a big difference. In any case, I appreciate your channel and content. I always learn great things from it. Thank you!
Agree
Crypto is bringing a different revolution in the world economy, people who are optimistic investors earn consistently, others will just sit and watch!
DCA budgeted investing and lump sum bonuses and any year end left over money.
Nice detailed video on the topic.
Great video….👍👍💪💪. Subscribed
I do both...I allocate 1/2 to lump sum and the balance to dollar cost averaging in the same stock.
Spot or Future, DCA is for which type of trade?
I choose to DCA every week as well, and at the end of the year if I have the ability to lump sum I do. Great info as always
Good stuff!
It doesn’t have to exclusively be a dollar cost average or lump sum investment. You can for example invest 50% of funds now and dollar cost average the rest.
Another great video Marko... but I can't help myself. I see you've got your T-Bro Price Patagonia Vest on. I guess the Memes are true. 😂😂😂
Love it
Quality content as always man!
You already know!
Amazing video!
Lump sum assumes you have the money all at once. I get money in different increments throughout the month, so I DCA weekly.
Good stuff!
Great video Marko❤
So, what you are saying is to continually purchase a stock, in increments, as it loses money?
Dca one manual sports car per quarter
I have no idea what the market will do between truly impressive technology rapidly evolving and a broken system that constantly borrows more and more from the future.
That said, I use a hybrid strategy. When the market is cheaper, I increase my contributions and when it's expensive I decrease them. I do this across multiple accounts with low fee ETFs and Bonds and my work matches up to a certain amount of my RRSP which is essentially free money.
As for all my cash on the sidelines, it gives me a nice safety cushion for a crash, emergencies and for another vehicle when mine kicks the bucket.
Hi Marco, awesome work, enjoy your videos. One thing to note about the last example of the Japanese index - what would happen to the US and world economy if the SPY/VTI remained in the red for 2 consecutive years? Not even talking about 10 years below previous valuation.
DCA for the win!
I used to explain my strategy in the comment section of various financial youtube videos, but every time I explained it, in a matter of two weeks there was no feedback, no response, nothing. So yeah, I will never explain it again. Nice video though.
Regarding timing for a lump sum - I'm looking to superfund a 529 account - would you lump sum invest today in a 529 account or wait a few months given the current economic conditions to see if the market goes down more?
i think indivisual stock DCA ,,And ETF investing lump sum Ok ??
Its a tricky one? I have several single l stocks and also a S&P500 ETF. I try to buy whenever one of stocks is low as there's usaly one or two that aren't doing quite as well as the rest to lower the average of that purchase prise. Then when it flips I'll do the same with the other stocks. I think its a good idea to have exposure to several sectors so you can take advantage of low sentiment in any one of those sectors as usually when one is high one will be lower if that makes sense?
Thank You Marko
About to inherit and I've been debating on whether I should drop it all in at once or spread it out over a year or so. I was leaning towards lump sum but you may have just changed my mind.
I don't know how much you are inheriting or how much you are already contributing to your retirement accounts. One option is to max out your contributions to your retirement accounts and live off the inheritance as long as it lasts and then go back to your normal contribution amounts. For example, if you inherit $99,000 and are currently contributing $500 per month to a 401k, you could crank up your monthly contribution to $1875 per month for the next 6 years. If you are married, you and your spouse can max out your contributions for the next 3 years.
For simplicity, I am assuming you have already maxed out your IRA's and you are under age 50 and ignoring interest on the inheritance, but you get the idea. This gets a lot of money into tax advantaged accounts quicker and also uses DCA.
There is a company that pays 3% of your salary and holds it for you until the first week of Jan. They used to do it per pay period (DCA). There is no choice when that investment happens. I would love to find out it is illegal. I am sure it is not benefiting the employees. Oh, if you get fired or leave the company you get nothing. You have to be there in Jan for the payout or it is all gone. The 3% is not a match. It is given regardless of your contribution.
So timing of the market is required in both strategies really. There’s no edge here. Still blind faith.
The edge to be gained is investing with the right strategy that suits your personality because if you can’t handle the emotional roller coaster, exiting the market is your only choice to end the pain.
DCA does not have to be timed perfect as apposed to lump sum. If you are going all in, you better hope the market doesn't correct or are near resession. I rather sleep easy at night and DCA
i always intuitively understood dca was bullshit. it just doesn't make any logical sense. if you have a lump sum of money invest it now. however as a practical matter, dca is just how people usually invest. it's easier to invest 200 a month than have a large sum available.
Need an FA with a similar investment approach. Can you help?
If you can't afford lump sum, then dollar cost averaging is a viable alternative.
I'm 25, I have a Roth IRA, & a brokerage. I have QQQM in them both. I'm considering adding in VOO & SCHD. But also 1 mutual fund. I'm going to do research but if anyone knows the best one LONG TERM, drop it down in the comments.
Thank ya!
If you invest every month a part of your salary in several instruments over your portfolio, is that DCA? I mean who get all his money at one time?
Timing the market is impossible, tell me I’m wrong.
is it a good a idea to dca on vti in my brokerage account for the next 15 years?
Thanks
Where do you manage your ira?
I have a Roth with Vanguard and a SEP with M1 Finance
I've also always dollar cost averaged for about 7-8 years. That seemed to make sense to me since I'm just taking a few hundred dollars out of my pay check each month. It's predictable to budget for, and if I start making more money then I could adjust that percentage of income that I invest each month.
My question is where does the money come from if I wanted to lump sum invest? Wouldn't I be holding cash for some period of time in order to build up the lump sum? Why not just invest those dollars as soon as they are available instead of holding onto them in the hopes of timing the market? That lump sum scenario only makes sense in my mind if I was gifted some large sum of money.
I think in his example, he referenced getting the lump sum money from an annual work bonus, inheritance, or some other type of windfall. Hope that helps.
When you're from the DMV, and you only refer to "DCA" as an airport code 🤣