Invest $5,500 all at once or spread out over longer term?

[sdt1890]

I have a IRA from 2 years ago where I put the full $5,500 in right before taxes and have not done anything with the account since then (very anti-Mustachian, I know).

I'm thinking I will now put the full account into Vanguard index funds, is there any reason(s) it would be a good idea to either put the entire $5,500 in these accounts asap versus layering it in over the next 6-12 months?

[BigHaus89]

I'd put it all in now. The longer you are in the market, the more compounding interest works in your favor.

[WildJager]

Relatively speaking, $5500 isn't too large of a sum to sweat it.  I'd just invest it all now.  (Well, regardless of the amount I'd invest it all now, but I know that's emotionally hard for some people).  Historically, you'd come out on top 2/3s of the time by investing it all now.

[RWD]

If you already had it invested would you take some back out? That should answer whether you should invest it all at once.

In my opinion $5,500 is way too small to think about splitting up. Just invest it all at once. See also Jim Collins' post:
http://jlcollinsnh.com/2014/11/12/stocks-part-xxvii-why-i-dont-like-dollar-cost-averaging/

[sdt1890]

Appreciate the responses. Very likely going to just invest it all at once. Now just to decide which Vanguard fund(s) to buy.

[frugledoc]

Appreciate the responses. Very likely going to just invest it all at once. Now just to decide which Vanguard fund(s) to buy.

5,500 just one fund. 

In 10 years time you will look back at agitating over this sum of money and laugh as your portfolio goes up and down may times this in a day.

[Playing with Fire UK]

What does that $5500 mean to you? Is it your only savings? Might you need to get it out for an emergency?

If not then just lump sum it.

[sdt1890]

What does that $5500 mean to you? Is it your only savings? Might you need to get it out for an emergency?

If not then just lump sum it.

No, will not need for an emergency and is not my only savings. I intend to stash it away for 30+ years.

[Playing with Fire UK]

What does that $5500 mean to you? Is it your only savings? Might you need to get it out for an emergency?

If not then just lump sum it.

No, will not need for an emergency and is not my only savings. I intend to stash it away for 30+ years.

Great, then go for it. What global or whole market trackers do you have access to?

[Rubic]

In 10 years time you will look back at agitating over this sum of money and laugh as your portfolio goes up and down may times this in a day.

+1

My portfolio will sometimes fluctuate up/down by more than my entire annual
salary(*) from years gone by ...


* nominal, non-inflation adjusted

[FrenchStache]

Invest all at once and you can put it in the vanguard total stock market fund since you are investing for the long term.

[ABK]

Gah, <3 this forum. Came on here with a question about dollar cost averaging, and found great answers, right there on the first page of Investor Alley.