There seems to be good agreement that dollar cost averaging is a good way to put money into mutual funds - simple, can be automatic, and you generally come out ahead as the share price fluctuates. But I've seen a couple references here and other places that say when you take your money out, DCA works equally much against you.
I remember being convinced by the math when I saw it, and I admit that intuitively it makes sense that you can't have it both ways, but I guess my brain doesn't want to admit that DCA-ing out would be so bad.
What is the better strategy? Lump sums? Do you have to start trying to market-time?
I remember being convinced by the math when I saw it, and I admit that intuitively it makes sense that you can't have it both ways, but I guess my brain doesn't want to admit that DCA-ing out would be so bad.
What is the better strategy? Lump sums? Do you have to start trying to market-time?