For those vested in ETFs, do you DCA forever or have a limit of 12, 24 or 36 months for DCA? I think 12 months is a tad short for averaging, but what about 36 months? Enough to ride out the storm?

Before I answer this, I think I need to clarify that:

• Putting your salary in every month when you receive your paycheck = Lump sum investing

• Slowly entering at regular intervals with an amount that you saved up already = Dollar Cost Averaging

So, the longer time you DCA an amount that you already saved up, the higher the chance of losing to lump sum investing. This is logical because in general the market should trend upwards, meaning that the longer you wait, the higher the chance of the market ending higher than when you started. In fact, when comparing over a 12 month period, Lump sum investing beat DCA almost 66% of the time. This win rate increases as the DCA time frame increases. I covered this point in my article here on DCA vs Lump Sum.

However, if you are referring to whether you should keep putting in your salary every month into ETFs, then my answer would be yes! :-)

Happy investing!

DCA all the way!!

My ETF DCAs serves 2 purposes:

• my retirement
• my son's University fees (if he wants to go overseas, and he's only 1 year old this year)

Will continue to DCA until both above are reached or until something unexpected occurs (loss of income)

I'll DCA till 6 months before i need the money.

ie if i dont need the money and i have income coming in, continue to DCA.

If i need the money eg June 2021, i will take out 6 mths before in Jan 2021 (if the market is doing okay). Because if there is a downturn in the market in Jan 2021, it still got 6 months to ride it back up (it will generally recover). Personal take only.