Anybody Buying Yet? Where’s the Bottom?

[Nick87]

Hypothetically if a relative payed back a lump some they owed you. About 2x what you'd invest annually. Would it be better to toss the lump some in at once or spread it out over a year or so. Or does it really not matter? Just thought maybe if I spread it out timing wise would average out.

 

[brymoore]

DCA works great for ongoing contributions into a retirement account for the bulk of us who can't or couldn't max out our giving to them.

DCA is the best plan for the majority of investors. We’re not Warren Buffett, Charlie Munger, Vogel or the S&P (on a risk basis). The majority of the mutual funds couldn’t beat Buffet over a five year average. If you have the time and effort to learn the market, maybe. Or be an inside trader.

 

[SAJ-99]

Hypothetically if a relative payed back a lump some they owed you. About 2x what you'd invest annually. Would it be better to toss the lump some in at once or spread it out over a year or so. Or does it really not matter? Just thought maybe if I spread it out timing wise would average out.

Will it matter in 10-20yrs? No. The problem most people face is that they think they have a plan but can't follow it. I have given this advice before on this same thread - just put it to work and eliminate the worry. If you put it to work at 1pm EST today you look like a genius.LOL. If you want a create plan, use 25% of it to buy every quarter on the 15th or something like that.

For most people, the risk in investing is located between the ears.

 

[Bonasababy]

DCA is the best plan for the majority of investors. We’re not Warren Buffett, Charlie Munger, Vogel or the S&P (on a risk basis). The majority of the mutual funds couldn’t beat Buffet over a five year average. If you have the time and effort to learn the market, maybe. Or be an inside trader.

Don't disagree but see many people who have a sum they want to invest who think it helps to hold a portion back in cash and invest it over time. You aren't earning anything sitting in cash and all the folks you mentioned (I am most familar with Bogel) would suggest holding it in cash is costing you money. Esp. now with higher inflation!

 

[Nick87]

Will it matter in 10-20yrs? No. The problem most people face is that they think they have a plan but can't follow it. I have given this advice before on this same thread - just put it to work and eliminate the worry. If you put it to work at 1pm EST today you look like a genius.LOL. If you want a create plan, use 25% of it to buy every quarter on the 15th or something like that.

For most people, the risk in investing is located between the ears.

Fair enough. Pretty much what I thought. Good news is it'll raise my funds up about 20% or better.