Money Lesson
Single
Single
All at once, or monthly?
A plan manager of 38 inherits £100,000 and cannot decide whether to invest it on Monday or a twelfth of it a month for a year. What does the cautious answer cost, and what does it buy?
Employment
Expenses
Savings Account
Investments
2 Goals · 1 What-If
The whole inheritance goes into the market on day one.
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Employment
Expenses
Savings Account
Investments
2 Goals · 1 What-If
The same money goes in over twelve equal months, with the rest waiting in the savings account.
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All at once
Monthly over a year
Monthly over a year
Spreading it over twelve months only came out ahead because the market fell for two years, starting the month after the money went in. Without that fall, all at once would have won; with it, waiting was worth ~£14.5k by the end.
