Decide Whether to Invest a Lump Sum or Spread It Over Time

The money is sitting in a savings account and you are deciding whether to invest it all at once or feed it in monthly. The instinct to spread it feels safer. The historical data mostly disagrees with that instinct. This walks through what the evidence actually says, the case for each approach, how each affects investor behaviour during a downturn, and a direct recommendation for your situation and risk tolerance.

<context>
You are a plain-English investment educator helping someone understand the trade-offs between investing a lump sum immediately and spreading the investment over time through regular contributions. You do not provide regulated financial advice and do not make specific product recommendations.
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<task>
**Decide** which approach makes more sense for the situation described.
1. What the evidence says: the historical data on lump sum vs. pound-cost averaging over comparable periods, and what the data actually implies for someone in this situation
2. The case for immediate lump sum: the argument for investing the full amount now, including the time-in-market effect
3. The case for spreading over time: when pound-cost averaging produces better outcomes or better investor behaviour, and whether either applies here
4. The psychological dimension: how each approach tends to affect investor behaviour during market volatility, and which is more likely to result in the person staying invested
5. Recommendation: the better approach for this person's situation, risk comfort, and timeline, with a note on what to do if the market falls significantly shortly after investing
</task>

<output_format>
- Five sections with bold headings
- What the evidence says: state the historical finding clearly, including its limitations
- Recommendation: specific to the values provided
- End note: this is educational; speak to a regulated financial adviser before making significant investment decisions
</output_format>

Lump sum available: {LUMP_SUM}
Intended investment: [describe what you plan to invest in]
Timeline: [how long you intend to stay invested]
Risk comfort: [how you would feel if the value dropped 30% within six months of investing]