Unit 3 · Level 3 · DCA & lump sums
Review: money in motion
Lump sums usually win on paper; DCA wins on behavior, and salary investing is DCA whether you name it or not. Automation turns discipline into a standing order, crashes reward whoever kept buying, and windfalls get the slow-hands playbook. The theme underneath: design the system so your worst mood can't touch the plan.
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What you get asked
What's the accurate summary of lump sum vs DCA?
Both are legitimate; cash waiting indefinitely on the sidelines is the strategy that reliably underperforms. Choose by your nerves, not by a forecast.
Match the tool to the failure it prevents
Every tool here manages the same asset: you. The market was never the part of the system you could control.
In March 2020 the S&P 500 fell about 34% in five weeks and was back at record highs within roughly ___ months.
Whoever sold 'until things calmed down' missed one of the fastest recoveries ever recorded. 2008 took five years instead; you never know which script is playing.
A €20,000 bonus lands. Per the playbook, what happens BEFORE any investing?
The buckets and debt rules from Unit 1 apply doubly to sudden money. Only what survives those steps goes to the market, via lump sum or a short DCA.
What single idea connects automation, crash-buying, and windfall patience?
Future-you will be scared, euphoric, or busy, so calm-you writes the rules now. Next unit: pointing this machine at the longest game of all, retirement. 🐜
The rest of this unit
How money gets INTO the plan: drip by drip, all at once, and through the storms.