Over a sufficiently long period of time all things tend towards their mean, and I guess that is the point – you want the comforts of time to increase the probability that your asset allocation performs as expected…

You can tell a good post by the comments, and it looks like there’s been a lot of very interesting discussion. Thanks again for your post, I think it was fantastic.
.-= Daniel´s last blog ..How Much Do You Need for Retirement? =-.

Theoretically, no. Reality, very possible. Different ways to address the comment…

Reversing the argument, what impact does the intra-year peaks and troughs have over a long enough period of time? It will make a difference short-term, but as long as the denominator (total # of years) is large enough, it should average out.

Don’t necessarily have to make any purchases immediately. Simply depositing the money at the beginning and letting it sit while you decide what to do will still grow in cash reserves/money market.

The end result is highly dependent on many factors, but I think the key component to recognize is the distributions. If you’re compounding quarterly or bi-annually maybe the single-block strategy doesn’t make as much sense compared to monthly payouts.

There’s a lot of “luck” involved as someone once noted. Going back to the original question, predicting the reality is near impossible but to argue against the principle would be to argue against compounding.
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

What if you front load in January, and the markets take a dive in Feb, March, April.. then what?
.-= Financial Samurai´s last blog ..Wealth Is An Illusion Of Happiness =-.

Making you feel good about saving early?

Following your mantra, it makes sense to “eliminate the muda” of automated, monthly contributions – one fell swoop & done!

Frankly I just hate the hassle of having to do monthly contributions and while I use some automation, I am a little old to feel comfortable with it.

Great point in the comments about is still being DCA!
.-= LeanLifeCoach´s last blog ..Financial Intervention With Aging Parents =-.

I like that phrase: “interest shower” Nice:)

Thanks so much for the opportunity to guest post. Glad to see that the strategy hasn’t been ill-received, there’s those already implementing it, and others who are interested in it.

The comments have been great so far and I hope they continue on that track!
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

Yes, the results can vary depending on what timeframe you assume / interest amount / accural rate / etc. If you’ve ever played an instrument, I like my examples to crescendo to a grand finale! :) It’s more exciting to build something up from a little whisper to a loud roar, and makes it harder to counter-argue.
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

To offer some outside inspiration, I’ve been relating many things to running recently. Saving for the current and next year can seem tiresome (esp. for 2 accts!), but its similar to maintaining your speed towards the end of a race. The more tired you get, the harder it is to maintain, or even push, that pace. Here’s where that internal fire comes in, and the question becomes “how much do you want this”.

If you can push yourself (to financial exhaustion), by embracing whatever unconventional strategies will help you reach your goal, realize that eventually it will come to an end and that result will be extremely rewarding. Plus, once you push yourself to the brink all subsequent years will seem trivial and much easier.

Best of Luck!
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

If you’re investing “for the long haul” (however that applies to you), the difference between investing monthly vs. yearly should be relatively neglible. If you’re trading more frequently, then you shouldn’t really be using DCA and instead looking for price points e.g. as W.Buffett commented on.
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

Hadn’t thought about the second part, but makes sense. Collecting expense fees on a few HUNDRED smaller accounts can equate to the same as few larger accounts.
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

Whether it consciously or not, talk to any grandparent and you’ll find that was a big part of the strategy. Keep filling up the bucket until it starts overflowing, then enjoy the fruits of your labor and take an interest shower ;)
.-= FinEngr´s last blog ..Yakezie Weekly Round-up: Round Two! =-.

Also, I still consider this a form of DCA. Since I’m investing at the same time every year, no matter what the market is at.
.-= RJ Weiss´s last blog ..All About Asset Allocation Strategy =-.