Here's an interactive tool illustrating DCA vs. LSI. It uses 100 years of U.S. stock market returns data and looks at every rolling 10-year period, and then averages the results of all periods to compare.
Dollar Cost Averaging vs. Lump Sum Investing Calculator (DCA vs. LSI)
DCA period:
Cash earns (annual):
Avg. lump sum ending value
—
per $10k, avg of 90 rolling 10-yr periods
Avg. DCA ending value
—
per $10k, avg of 90 rolling 10-yr periods
Avg. left on the table with DCA: — —
Each faint line = one 10-year starting year (1926-2015). Bold lines = averages across all 90 periods.
OptimizedPortfolio.com
Leave a Reply