Good morning! I've been helping my mother with her estate and we're looking to set a decent chunk of cash into investments. I'm heavily leaning toward Vanguard's Personal Advisor services for her and overall was happy with the consultation except for one item: they advised against Dollar Cost Averaging (DCA) into her position.
They said their research showed that DCA was not a meaningful strategy in these situations ... and I've asked to see that research.
This goes against everything I've been taught about entering larger positions (even just in the market as a whole) when volatility is higher. Entertainingly enough, the first advisor I spoke to (who won't be our permanent one) said that DCA'ing into her full position was "timing the market" ... this is exactly what DCA'ing would be trying to prevent in my head.
Have I had it wrong all these years? Should she not bother DCA'ing into her long term holdings?
More context - my mother doesn't need this money to live day-to-day. This is money she intends to leave to the kids/grandkids in a trust (most likely) and her living expenses are well covered through pensions. Pending what the advisor thinks, I'm currently thinking to do something like a 40% stock/ETF, 40% bond, 15% real estate (current properties), 5% cash allocation.
Submitted January 11, 2022 at 08:53AM by Domitiani https://ift.tt/3313op6
