Andy Egwim compares lump-sum investing against pound-cost averaging with math, not advice. He looks at one-off block investments versus regular drip-feeding into index funds like the FTSE or S&P 500.
Deal with that. Now I'm going to give you the mathematical answer. I'm not going to tell you what to do with your money. Obviously I don't know your current situation and your circumstances, how or how much you have in savings, your goals and your risk appetite and your risk tolerance and all that. But I'll give you the mathematical answer. Your question you're asking me is whether it's better to do like a block investment rather than drip feedback. Feed it what we call pound cost averaging. So normally there are two approaches. For many people who have passed through the investing academy who want to do absolutely the least possible work, they want to be investing. Most of them do what you said. The second option, pound cost averaging, where they set up a direct debit, it sends money to their ISA and the ISA has automatic instructions to buy either FTSE or World Index or S&P 500 or whatever fund they buy. Obviously we are going to look at the different fonts or we're going to look at different examples.
