Simple Investing Advice?

[adamu]

FTSE ALL CAPS

[Ax6isB]

Thanks for the feedback. I tend to forget about Vanguard as Fidelity doesn’t offer them up readily in searches (go figure). VT, ITOT and SCHB are all seem pretty similar in their make up.

[John_conner]

What would be the advantages of the emaxi over the vanguard fund?

Also with the bonds would it be the same as the other funds you just sit on them till retirement?

thanks

[adamu]

Please don't ask the same question in multiple places. Here's the other thread: viewtopic.php?p=18270#p18273

[anroy]

Don't waste time trying to learn about investing. Stop trying to penetrate the seemingly impenetrable sites. Investing is dead easy, as Kanto stated above. All the advice you need is there. Figure out (once) how to push the "purchase" button for those products, and then repeat every month or whenever you can. Don't sell. Ignore everything else as noise. Do that, and voila, you will have outperformed 80% of active investors, professionals included.

Is this repetition every month what most people mean by "dollar cost averaging"?
(There are technical definitions but are difficult to understand for a non-finance guy like myself).

[pfdsa]

Don't waste time trying to learn about investing. Stop trying to penetrate the seemingly impenetrable sites. Investing is dead easy, as Kanto stated above. All the advice you need is there. Figure out (once) how to push the "purchase" button for those products, and then repeat every month or whenever you can. Don't sell. Ignore everything else as noise. Do that, and voila, you will have outperformed 80% of active investors, professionals included.

Is this repetition every month what most people mean by "dollar cost averaging"?
(There are technical definitions but are difficult to understand for a non-finance guy like myself).

Exactly. For example, let's suppose you have 600,000 yen to invest. You could invest the lump sum (600,000 yen), or you could divide that money by 12 months and invest 50,000 every month. That would be dollar cost averaging.

[EmaxisSlim Cultist]

Don't waste time trying to learn about investing. Stop trying to penetrate the seemingly impenetrable sites. Investing is dead easy, as Kanto stated above. All the advice you need is there. Figure out (once) how to push the "purchase" button for those products, and then repeat every month or whenever you can. Don't sell. Ignore everything else as noise. Do that, and voila, you will have outperformed 80% of active investors, professionals included.

Is this repetition every month what most people mean by "dollar cost averaging"?
(There are technical definitions but are difficult to understand for a non-finance guy like myself).

Exactly. For example, let's suppose you have 600,000 yen to invest. You could invest the lump sum (600,000 yen), or you could divide that money by 12 months and invest 50,000 every month. That would be dollar cost averaging.

It is worth mentioning that lumpsum investing statistically outperforms DCA.

If you get $100,000 from your dead great uncle you are better off investing the whole lot in one go.

However, through iDeco, Nisa and Tsumitate most of us are DCAing paycheck to paycheck.

[adamu]

It is worth mentioning that lumpsum investing statistically outperforms DCA.

If you get $100,000 from your dead great uncle you are better off investing the whole lot in one go.

It's more subtle than that. Lump sum beats DCA on average. But you might not be average. So you will *probably* be better off with the lump sum, but might not, and there's not much in it either way, and no way to tell in advance. Therefore, do what you're most comfortable doing.

[EmaxisSlim Cultist]

It is worth mentioning that lumpsum investing statistically outperforms DCA.

If you get $100,000 from your dead great uncle you are better off investing the whole lot in one go.

It's more subtle than that. Lump sum beats DCA on average. But you might not be average. So you will *probably* be better off with the lump sum, but might not, and there's not much in it either way, and no way to tell in advance. Therefore, do what you're most comfortable doing.

I disagree, Vanguard has published quite a bit on this subject. Windfalls should be invested in a lump sum. That is what the data shows.

This is a dilemma many people face if they are lucky enough to inherit money.

https://investor.vanguard.com/investing ... t-lump-sum

[adamu]

I disagree, Vanguard has published quite a bit on this subject. Windfalls should be invested in a lump sum. That is what the data shows.

This is a dilemma many people face if they are lucky enough to inherit money.

https://investor.vanguard.com/investing ... t-lump-sum

They say that it is "prudent" to invest as a lump sum, but they do not use your language that "you are better off" doing so. The odds are in your favour, but it's not guaranteed. They also emphasise that dollar cost averaging is worth considering if you are worried about a downturn.