Glossary
Front-loading
Filling a tax-free quota as early as possible so more money compounds tax-free for longer. In our century of data, front-loading beat steady DCA in about 67% of years.
In plain terms
The logic is 'time in market': a January lump sum spends eleven more months invested than the same money dripped in monthly, and markets drift upward more years than not. The ~67% win rate is just that drift made visible.
The flip side is the other ~33%: in years that fall early (1929, 2008, 2020), front-loading buys the top and DCA buys the dip. It is a bet with better-than-even odds, not a free lunch — which is exactly how our study presents it.
Related terms
Educational definitions only. Not investment advice.