I invest a constant amount every month into index funds, but have had a pretty good few months of income at work. I have a surplus of about $45,000 in my savings account (Ally), that I normally keep a little excess cash. Right now I am planning on bumping my monthly savings by $4000 to dollar cost average this amount into my funds over the next year. I feel like this will help hedge against a possible sudden drop in the market over the next couple months. Is my thinking correct, or should I just plop it all into my usual funds and get it out of the 1% savings account?
Any input is appreciated!