I agree about the size. Let’s say you get a windfall of a million dollar. You decide to lump sum it on oct 1987. Oppsie! Even though your chance of having a huge one day drop would be minimal, drawing the wrong card would hurt a lot. It might be prudent to spread out the investment over a few months. At least interest rate is high these day so you won’t have to suffer 0.1% return while your money sits on the sideline. It won’t save you from a prelong crash but you will feel less bad should you get hit with a short market correction.
And it's proportional to the size of the lump.
If you are just investing your Ira contribution the amount is small enough to just invest it as a lump sum. Losing 3k is a lot less painful than losing half a mil.
For your employers saving plan, just invest the money into the funds right away
Statistics: Posted by gavinsiu — Sat Dec 16, 2023 11:41 pm — Replies 60 — Views 3222