DCA vs lump sum

art19

Joined: Oct 9, 2017

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It's that time of year again. Last year Jan 1st was a painful 6000 to watch drop in my Roth. Thoughts? Drop 6500 in tomorrow, or drop in every month? Plenty of time until retirement…..

AgOutsideAustin

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1:37p, 12/31/22

AG

Not an expert but believe I heard somewhere that over a very long period it's best to lump sum. But you also said last year was painful so just DCA and sleep better at night.

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HouAggie

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2:16p, 12/31/22

It's only $6500. Can't make much difference. Lump sum is easier.

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Motis B Totis

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4:27p, 12/31/22

AG

Dude come on. If you have the $, take the dump and don't look back. If you don't have the $, DCA.

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techno-ag

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6:51p, 12/31/22

AG

One could argue the DCA takes place over several years … 6500 every January. IOW your annual lump sum is the DCA over time.

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Dill-Ag13

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10:38p, 12/31/22

AG

541.66/month

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Petrino1

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In reply to HouAggie • 8:45a, 1/1/23

HouAggie said:
It's only $6500. Can't make much difference. Lump sum is easier.

This. $6500 isn't that much money. Just lump sum it.

QuantumNoodle

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9:05a, 1/1/23

$6500 on Jan 2nd every year for 30 years IS dollar cost averaging.

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JohnLA762

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In reply to QuantumNoodle • 9:36a, 1/1/23

AG

RockOn said:
$6500 on Jan 2nd every year for 30 years IS dollar cost averaging.

Over contribute much?

In all seriousness, there isn't a difference between the two. Do what works for you and keeps you consistent. That is more important than anything else!

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