Author Topic: To invest in a lump sum or take it slow  (Read 1436 times)

bryanth

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To invest in a lump sum or take it slow
« on: June 29, 2014, 07:57:31 PM »
Hey. So I recently sold a few things on Ebay and am currently about $10k in the positive of funds that I have no use for. I currently have maxed out my Roth IRA. The general consensus I assume is to even that amount out over the course of the remainder of the year and have it deducted from my paycheck into 401k. This way I can avoid any turbulence in the market. Is this the best thing to do, or can I just spread it out over the next 3-4 paychecks (bi monthly)? I just fear that inevitably the market will go up by the end of the year, and by holding some of it out, I will be missing out on the potential gains. If so, I'd definitely leave the remainder in my savings to gain the 0.8% interest in the meantime.

Thoughts?

BlueLesPaul

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Re: To invest in a lump sum or take it slow
« Reply #1 on: June 29, 2014, 09:49:11 PM »
Most of the advice that I have heard suggest that you invest it all at once, especially if you are in for the long haul.  You tend to come out ahead if you do it all at once,but investing over time would be more than a reasonable approach.

Hope that helps.
« Last Edit: June 30, 2014, 02:08:54 PM by BlueLesPaul »

frugledoc

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Re: To invest in a lump sum or take it slow
« Reply #2 on: June 30, 2014, 04:49:19 AM »
$10,000 is too small a lump sum to even think about taking it slow.  I would just invest it in one go if you are in it for the long term.  Even a 50% market crash would only lose you $5000 dollars short term which is of no relevance.

furrychickens

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Re: To invest in a lump sum or take it slow
« Reply #3 on: June 30, 2014, 07:57:06 AM »
Lump sum always beats out DCA over time, but no matter how you do it, it's important to have your little green employees working for you.