Investing term
What is Lump sum?
Investing a large amount all at once instead of spreading it over time.
Lump-sum investing is putting a large amount of money to work all at once, rather than feeding it in gradually. Because markets rise more often than they fall, the historical evidence favors investing a lump sum immediately over spreading it out — your money spends more time in the market. The catch is emotional: a crash right after going all-in is hard to stomach.
For example
Inheriting $50,000 and investing it all today usually beats drip-feeding it over a year — though spreading it in can feel safer against bad timing.
Lump sum is taught hands-on in Stage 11 — Automate, Compound & Start Early.
See the lesson →