Best Way to Invest $100,000? (Lump Sum or Dollar Cost Average?)

Best Way to Invest $100,000? (Lump Sum or Dollar Cost Average?)

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[getinthespace]

If the market is volatile, buy the dips or if it's at risk of a big drop. DCA.
If things are stable and gaining., toss it all in there.

[mark]

It depends if this is new money to the market. If money is already in the stock market, then the investment is a sideways move. Invest the money in the market as a lump sum. The trick is not to look back, hindsight is 20/20. When I invest lump sums that are not already in the market I chose my time period and move money into the market based on that schedule. It's human nature to regret not buying the market at the low and beat ones self up for buying at the high. By dollar cost averaging new money into the market some months you will buy during up trends and other time you will buy in a down trends. Over the long term, the up and down swings become immaterial.

[michaelswami]

And then there is always the half and half strategy, half in now and half in over 10 months. Anyway, nice dilemma to face.

[josecallesalvarez]

I did lump sum in 2022 for my IRA and boy was that a mistake

[element]

The answer: whichever strategy that makes it less likely for your investment “plan” to go sideways. Invest once and forget about it, or every month for XX number of months.. now you tell me which is less likely to go sideways

[ddellwo]

Looking at where the economy is right now (May 1, 2023) I would dollar cost average…….😐

[CeeRiplayis]

Given the precarious state of economy and market volatility, would you recommend having an advisor despite no one can 100% predict future outcome? I am refraining from investing in stocks as of now, and looking towards gold for wealth gains

[PPCCO.]

You can’t time the market, DCA is always better for 99% of people

[kendarcie]

Just tell people that if they don't use a CFP they can save 2% +++, and to educate themselves financially. It is not hard.

[WtfReal]

In my personal opinion lump sump is better.

[jo-annguthur]

Could you take us to a step by step process how to invest in S&P 500? I need this in baby steps. Thanks

[aarontaylor]

Just put it all in Hbar. You will be a multi-millionaire during the next bill run.

[testdepth]

I have extra to invest. I'm asking what investment will grow my money the fastest allowing for the largest return?

[taylorjackson]

Always dollar cost averaging. It’s been proven over and over again. You will always average a lower cost per share.

[WTJBlog]

Here is a hot take strategy for you. Start contributing $1k per week, and put pressure on yourself to keep that going indefinitely. Obviously you get the first two years for free, but behaviorally you will start feeling extra pressure on yourself to keep saving so that you can get the third year, and then the fourth year covered etc. very fast way to make it to a million.

[johngill]

I am not dollar cost averaging with my retirement. It's called investing periodically, you guys should know that