Lump sum vs Dollar-cost average in 2018?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Derivative
Posts: 262
Joined: Wed Jul 03, 2013 8:05 am

Lump sum vs Dollar-cost average in 2018?

Post by Derivative » Fri Apr 20, 2018 7:03 pm

Lump sum vs Dollar-cost average in 2018?

Which one are you guys doing for your Roth IRA, 401ks, and investing in general? Before I always lump sumed at the beginning of each year but this year due to drop I am wondering if I should dollar-cost average. What do you guys think? What are you guys doing?

ny_rn
Posts: 401
Joined: Sun May 11, 2014 7:09 am

Re: Lump sum vs Dollar-cost average in 2018?

Post by ny_rn » Fri Apr 20, 2018 7:06 pm

403(b) - should max out around July 2018.
Roth IRA - lump sum.
Taxable - throw money in throughout the year.

I believe in "time in the market."

MotoTrojan
Posts: 1934
Joined: Wed Feb 01, 2017 8:39 pm

Re: Lump sum vs Dollar-cost average in 2018?

Post by MotoTrojan » Fri Apr 20, 2018 7:09 pm

401k evenly distributed throughout year. Everything else I fill as fast as possible, starting with Roth (for ease) and then taxable investing whenever cash becomes available. Time in the market. No tinkering allowed.

Putting that will power to the test in 2 weeks when a low/mid 5-figure windfall hits (doubles my fairly new portfolio).

onourway
Posts: 1121
Joined: Thu Dec 08, 2016 3:39 pm

Re: Lump sum vs Dollar-cost average in 2018?

Post by onourway » Fri Apr 20, 2018 7:18 pm

All money invested as soon as it is available, just like always.

9liner
Posts: 69
Joined: Wed Jan 18, 2017 1:03 pm

Re: Lump sum vs Dollar-cost average in 2018?

Post by 9liner » Fri Apr 20, 2018 7:55 pm

Both Roth IRAs = Maxed in February.

DW 401k = Maxed in December so as not to lose the company match.

My TSP = Maxed in December because I can't afford to max it sooner.

Taxable and high yield savings = Contributions twice per month.

If I could afford it and it would not affect the company match, I would max the 401k out sooner.

magneto
Posts: 951
Joined: Sun Dec 19, 2010 10:57 am
Location: On Chesil Beach

Re: Lump sum vs Dollar-cost average in 2018?

Post by magneto » Sat Apr 21, 2018 9:59 am

Derivative wrote:
Fri Apr 20, 2018 7:03 pm
Lump sum vs Dollar-cost average in 2018?
Which one are you guys doing ........ and investing in general? Before I always lump sumed at the beginning of each year but this year due to drop I am wondering if I should dollar-cost average. What do you guys think? What are you guys doing?
'Time diversification' (in a narrow sense) used sensibly, can be a worthwhile addition to the investor's toolkit.
The recent lower Stock prices have been drawing this investor towards Stocks; but in a pre-planned progressive process which restrains the speed of approach to Stocks target.
See also 'Value Averaging' which might be apposite if wavering on the brink.
Last edited by magneto on Sat Apr 21, 2018 12:55 pm, edited 1 time in total.
'There is a tide in the affairs of men ...', Brutus (Market Timer)

User avatar
BolderBoy
Posts: 3987
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Lump sum vs Dollar-cost average in 2018?

Post by BolderBoy » Sat Apr 21, 2018 10:47 am

onourway wrote:
Fri Apr 20, 2018 7:18 pm
All money invested as soon as it is available, just like always.
This.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

User avatar
Earl Lemongrab
Posts: 4982
Joined: Tue Jun 10, 2014 1:14 am

Re: Lump sum vs Dollar-cost average in 2018?

Post by Earl Lemongrab » Sat Apr 21, 2018 2:06 pm

The number one principle of my investing plan is that I have NO skills at market timing. It appears that you think you do. Why is that? In fact, why DCA just new money? Sell everything and DCA that.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Post Reply