Author Topic: Part 2.. If you had $100k..would you invest all the money at once or spread out?  (Read 2257 times)

NCTarheel

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Appreciate all the input received from the previous post.

Overwhelming response to invest in the market..

Question #2:  Should you invest all $100k:
 1. at one time?
 2. spread out over the next few months? (ex. $20k per month for the next 5 months)


jlcnuke

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All at once.

Raenia

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All at once.  Lump sum beats dollar cost averaging in most situations.

I'm a red panda

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All at once.  Even though it's hard to do psychologically.

comicguy

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All at once!!

CoffeeR

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All at once.  Lump sum beats dollar cost averaging in most situations.
Yes, on average lump sum beats dollar cost averaging, but you pay a price.... a higher spread on potential return. So your highs on average will be higher, but your lows, on average, will be lower as well. I would dollar cost average if $100K represents a significant part of my net worth.


NotJen

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All at once.

boarder42

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i'd wait til tomorrow - the market isnt open today.

terran

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If you want the same answer from the experts: https://personal.vanguard.com/pdf/ISGDCA.pdf. Lump sum investing beats dollar cost averaging 67% of the time on average.

aceyou

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All at once. 

That would be my answer for any amount of money. 

If it were an amount that allowed me to FIRE, then I'd put 75% in VTSAX and 25% in Bonds, and I'd start a 4% withdrawal. 

If it were an amount that didn't allow me to FIRE (Like 100k), then I'd just put 100% in VTSAX so it could grow as fast as possible. 

Schaefer Light

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I'd invest it all at once, but I'm sure the market would crash the following day.