I just bought $5000 worth of index funds (Canadian, US, and international equities). My plan is to invest a few hundred dollars every month for 20+ years.
I have a question. People say that the S&P had an annualized return of _%. How should I invest so that my long term return matches that?
I ask this because if someone bought S&P 500 right before the 2008 crash, they wouldn't have recovered until about 6 years later.
Would investing tiny amounts monthly even out that risk?
I know that this is essentially a lump sum vs. DCA question. But what about "dollar cost averaging" for 20+ years? Would that be as close to the natural market return as it can get?
Sorry if this question doesn't really make sense. I am completely new to investing.
Submitted March 09, 2017 at 02:56PM by Felr3 http://ift.tt/2mnZbC3
