T Nation

Lump Sum Investing Warning


Overall, theres been a 3-year runup on the markets. Heres something to keep in mind before throwing in a lump sum, especially if retirement is near:


The online list of other articles is also good.


This article seems to be like most others that you see in financial planning publications, based on correct principles, but written in a way so as to sell the ideas (or products) of the author and using an extreme example based on the actions of a dickhead.

Just another example of making sure you only get the important points out of an article, like if you are retiring or very close to it, and regardless of what the share market is doing, putting 100% of your retirement funds in equities is a dumb idea.


Yeah, its not the perfect article. Still, I really appreciated the mathematical approach. Having numbers helps to decide when its time to live with one`s losses or to decide to wait for a recovery, and if such a waiting period is realistic.