Pension Payments - regular/monthly versus end of year?

F

FatherDougal

Guest
Which , in the current climate , is the optimum method of depositing funds in one's pension - monthly sums or Lump sum at end of tax year , for self-employed? Tx & blessings on you all!
 
Re: Pension Payments

If you can, now is the time to lob as much as you can into your pension fund, as fund prices have dropped therefore you'll buy more units.
 
Re: Pension Payments

I disagree - timing the market is a mug's game. You would most likely be better off in the long run adopting a steady as she goes approach and just drip feeding a regular amount in each month for as long as you can.
 
Re: Pension Payments

ClubMan said:
Monthly would be better from a "dollar" cost averaging point of view towards mitigating the effects of transient volatility.
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The last paragraph from the wikipedia article:
 
Re: Pension Payments

Note the title of the paper referenced: A Note on the Suboptimality of Dollar-Cost Averaging as an Investment Policy and the first line:
The widespread notion that dollar-cost averaging can help minimize the risk of investing all of one's capital in the market at an inappropriate time is aptly stated by Malkiel ...
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I never claimed that DCA was "optimal" or perfect and I also said "mitigate" not "minimize".

Don't throw the baby out with the bathwater.
 
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