Is Lump Sum Investing Better than DCA?
Ever find yourself sitting on a chunk of cash, wondering whether to invest it all at once or slowly ease it into the market? You’re not alone. Many investors including both new and seasoned investors wrestle with the decision between lump sum investing and slowly investing it over regular intervals using a strategy called dollar cost averaging or DCA for short. It’s defintely an emotional decision: what if you invest big today and tomorrow is the start of the next Great Depression? While the answer isn’t always cut and dry, understanding the trade-offs can help you make a smarter, more confident choice with your money.
Studies have found that lump sum investing outperformed DCA about two-thirds of the time over rolling 10-year periods in the U.S. stock market. The reason? Markets are more likely to rise than fall over time, so delaying investment risks missing upward momentum
~Richard Tan, Side Hustle Rich
In this article Richard Tan of Side Hustle Rich makes a compelling case for why investing all at once often leads to better long-term outcomes. He breaks down the benefits of giving your money more time to grow through compounding, the hidden costs of holding cash, and how the comfort of DCA might actually hold you back. Citing historical data and practical scenarios, Richard shows that lump sum investing tends to outperform DCA in most market conditions—especially for disciplined investors with long time horizons. Of course, the most important thing is simply to start investing… DCA is obviously better than hiding your money in a mattress. If you’re curious to learn when DCA might still make sense and how to make the most of your cash, check out the full article for all the insights.
Balancing Retirement and College Savings
Trying to figure out how to juggle saving for your kids’ college while also making sure you have a secure retirement? You’re definitely not alone. It’s a common dilemma—after all, we all want to give our children a strong start in life, but we also don’t want to be financially dependent on them later. Balancing these two major financial goals can feel overwhelming, especially with so much advice out there. Maybe you’ve heard 1 or 2 “rules of thumb” but they don’t seem to apply to your situation. If you’re confused, this article gives you nuts and bolts formulas you can use to calculate exactly how much to save.
Let’s say you want to save up $100,000 in today’s dollars over 10 years for college. How much do you need to put away? =PMT(5%,10,0,100000) = $7,950 per year For a physician earning $300,000, that’s less than 3% of gross income. Even if you have three kids, that’s still less than half of what you need to save for retirement.
~Dr. Jim Dahle, The White Coat Investor
The article begins with Dr. Jim Dahle laying out a clear and practical case for why retirement should come first. He explains that while it’s tempting to prioritize college savings out of love and good intentions, your financial future has to take precedence—because you can borrow for college, but not for retirement. Dr. Dahle walks through how much more money (and time) is needed for retirement and shows how even if you don’t save specifically for college, you can still support your kids later through smart planning or cash flowing expenses when the time comes. He even makes the math easy with simple spreadsheet functions to calculate how much to save. His message is reassuring: you don’t need to guess or rely on flawed rules of thumb… instead you can just just run the numbers and adjust as life unfolds.
Rich Banks of Mom & Dad Are Everywhere—Accept It and Adapt
Ever feel like you’re playing the game of life on hard mode while your peers seem to be a lot further ahead thanks to a generous head start? In today’s world, financial support from parents (often dubbed the “Bank of Mom and Dad”) has become more common than ever. This is can be espescially true in high income, high cost of living areas such as New York or San Francisco. Whether it’s help with a down payment, buying a first car, or covering everyday expenses, generational wealth is shaping opportunities for young adults in powerful ways. And while it might be frustrating to watch peers leapfrog ahead with family backing, the question isn’t whether it’s fair… it’s what are you going to do about it?
Ever since I started working on Wall Street in 1999, I’ve seen wealthy parents buy their children everything—from condos to cars to groceries. I saw this firsthand with my peers at Goldman Sachs. While I was sharing a studio apartment with a high school friend and later a co-worker, some of my peers were getting $500,000–$750,000 condos from their parents.
~Sam Dogen, Financial Samurai
In his candid and thought-provoking piece, Sam Dogen, aka Financial Samurai, breaks down the growing influence of the Bank of Mom and Dad and what it means for everyone else. He argues that this trend isn’t going away, and rather than railing against it, your best move is to adapt. The article offers practical strategies for leveling the playing field such as investing in yourself, avoiding lifestyle creep, using leverage wisely, and thinking in terms of generational wealth. Ultimately, the message is both empowering and realistic: you might not have started with help, but you can build the foundation to become a “rich bank” for your own kids. Curious how? Check out the full article for insights, tips, and a dose of tough-love motivation.