How to Invest a Windfall of Cash: Dollar Cost Averaging vs. Lump Sum Investing

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.6 • 2.8K Ratings

🗓️ 8 March 2019

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

This week’s Money Guy Episode is inspired by an article written by Nick Maggiulli Of Dollars and Data on February 19, 2019 titled "How to Invest a Lump Sum” that talks about what you should do if you suddenly experience a windfall of money.

As it turns out, we also did a show on this very topic less than a year ago where we discussed whether or not you should take a lump sum or a dollar cost average approach to your investing. So, this week’s episode is a reboot that allows us to apply the same principles to the scenarios laid out by Nick Maggiulli.

Join us for this week’s episode of The Money Guy Show as we build a bridge between the analytics cited in Maggiulli’s article and the financial behaviors that impact your bottom line.

For more details, please visit the show notes on our website: https://www.moneyguy.com/2019/03/how-invest-windfall-cash/

Transcript

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0:00.0	The big windfall happens.
0:02.8	What do you do?
0:04.1	How do you invest that lump sum?
0:06.9	It's Brian Preston, the money guy,
0:09.9	restoring order to your financial chaos,
0:12.9	retirement, investing, taxes.
0:15.7	You've got financial questions,
0:17.3	he's got financial answers.
0:19.3	It's Brian Preston, the money guy.
0:22.7	So what do you do with all that cash?
0:24.2	That's the question I'm gonna answer today.
0:25.5	Something has happened, you sold the thing,
0:28.4	you got the inheritance, you cashed out,
0:32.2	the scratch off paid off, whatever it is,
0:35.1	you got a bunch of cash.
0:36.6	Let's be real estate.
0:38.3	You sold a business, you sold real estate.
0:40.8	It's not gonna be the lottery.
0:42.0	Well, if you're a lottery winner out there,
0:44.2	listen to the money guy show, we'd love to talk to you.
0:45.9	$600, $700 million.
0:47.5	We've interviewed a few lottery winners,
	...

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