Invest lump sum or dollar cost average in?

[millionaire-mindset]

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!

[seattlecyclone]

In general lump-sum investing is better. The theory is pretty simple. If the market goes up over the next year, you'll have more shares at the end of the year if you invest it all right now. If the market goes down over the next year, you'll have more shares at the end of the year if you invest a little bit every month. In general the market goes up more often than it goes down, therefore lump-sum investing is the best bet.

[GGNoob]

In general lump-sum investing is better. The theory is pretty simple. If the market goes up over the next year, you'll have more shares at the end of the year if you invest it all right now. If the market goes down over the next year, you'll have more shares at the end of the year if you invest a little bit every month. In general the market goes up more often than it goes down, therefore lump-sum investing is the best bet.

+1

It may just come down to...what strategy makes you feel better?

[taekvideo]

Yeah the statistics definitely favor investing it all now

[stlbrah]

Lump-sum. But personally, right now I would wait a bit.

Indexes are historically high right now and I wouldn't feel comfortable jumping in with 45k at this moment.