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Dollar cost averaging or all in one go?

Posted: Thu Sep 13, 2018 7:53 pm
by maryznp
Not happy with performance of conservative investment funds in TSP and Vanguard. Considering moving my retirement savings into funds with higher proportion of stocks to improve returns. Wondering if I should move it all at once, or move it gradually.
Retired 2 years ago. Age 68. Keeping a total balance of at least $250K until required minimum distributions.
Have about $220K in TSP in L Income Fund; planning to move to L2020 fund.
Have about $38K in Roth IRA in Vanguard VTINX; planning to move to Target Retirement 2020.
Thank you.

Re: Dollar cost averaging or all in one go?

Posted: Thu Sep 13, 2018 8:07 pm
by livesoft
This is a pretty small change in asset allocation, so I think you should move all at once.

Re: Dollar cost averaging or all in one go?

Posted: Fri Sep 14, 2018 12:09 am
by Peppergrass
DCA I believe works like 25% of the time..

it's really more for fear factor and easing the emotions above anything really, as most scenarios you are out of the market longer thus lower returns... most the time...

Re: Dollar cost averaging or all in one go?

Posted: Fri Sep 14, 2018 1:10 am
by daveydoo
About your premise but not your question: since you are not young, and are market-timing and (more or less) chasing returns, I would consider waiting until after November to increase your equity holdings.

If you had just said "I'm trying to align my asset allocation with my age and investment objectives," I would not have said anything.