Someone who went all in on the S&P 500 with 120,000 at the start of 2000:

End of 2000: 109,000
End of 2001: 96,000
End of 2002: 75,000
End of 2006: 130,000
End of 2008: 86,000
End of 2010: 126,000
End of 2013: 197,000

The same 120,000, invested in 10,000 installments at the start of each year:

End of 2000: 9,000 (10,000 invested)
End of 2002: 21,000 (30,000 invested)
End of 2006: 91,000 (70,000 invested)
End of 2008: 73,000 (90,000 invested)
End of 2010: 133,000 (110,000 invested)
End of 2013: 224,000 (all 120,000 invested)

It pulled ahead in 2010 and stayed ahead after that.

But this is cherry-picking the worst possible starting point. Vanguard statistics show that from 1976 to 2022, lump-sum investing outperformed dollar-cost averaging about 68% of the time.

Dollar-cost averaging wins by helping you stay invested, not through the math.

Data: Slickcharts S&P 500 annual total returns (including dividends), compounded annually based on year-end figures. Not investment advice.

#定投 #标普500 #USstocks