Lump Sum vs Dollar Cost Averaging

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#1

Thanks for the awesome course and the blog, it has been an eye-opener for me, and in changing my thoughts on investments. I love the 90/10 strategy of investing in the index vs speculation.

I have followed the rules of investing and have maxed out 401, HSA to the IRS limit. I am working to figure out the Roth IRA/ backdoor Roth for my situation. I am seeking advice on how to invest the remaining cash (100K) in a brokerage account, should I go for lump sum investing into an Index fund or go for dollar-cost averaging over time? I am currently inclined towards dollar-cost averaging, however, with the long-term perspective, I feel both options are the same. What’s your advice?

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#2

Some resources on this topic…

https://investor.vanguard.com/investing/online-trading/invest-lump-sum

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#3

Thanks, @thberry10 for the reference, really helpul.

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#4

In terms of time frame to do a lump sum, is 10 years enough for the market go back up if there is a fall? Thank you!

#5

@ellenbugni
Generally, yes.

Specifically, depends on which 10-year period.