[USER]

I recently came into $80k and am looking to invest it in Vanguard’s Total Stock Market ETF (VTI).

I’m debating between investing the entire amount as a lump sum or spreading it out over time through dollar-cost averaging (DCA).

For those with experience or knowledge in investing, which strategy do you think would be more beneficial given current market conditions?

I understand that lump sum investing might take advantage of market growth sooner, but DCA could potentially reduce the impact of volatility.

Any insights or personal experiences would be greatly appreciated, especially regarding how either approach might perform in the current economic climate.

Thanks in advance!

[Rick]

If you are asking, you may enjoy an automated dollar cost averaging effort.

To be clear, math proves this is not the most likely winning strategy but ehh the strategy you start AND complete is the most important.

I have done both and honestly DCA was far more fun.

Now I have done lump sum both to huge success (lucky timing) and to small frustration before a 10% drop.

But DCA was oddly fun and I was honestly deeply sad when the last automate buy was done over two months after it started.

But again….automated DCA is the ONLY way to do DCA.

Do not think you can and will do it manually.

Your brain will trick you and you will do something to sabotage yourself.

[Jennifer]

I’d average it in over the next two months looking for particularly bad days to double down but putting about 10k in a week.

But that’s not simple.

September and October usually have a couple of days where the market goes on sale and I’d be watching for those.

If you are busy and don’t want to spend that much time then lump sum is a good choice.

[Heather]

I just listened to simple path to wealth again this weekend. He says lump sum is almost always better, but if you feel more comfortable dollar cost averaging, it’s not the worst thing in the world.

Getting your money in the market is the most important thing, however you decide to do it.

[Sarah]

Math almost always works out for lump sum. Just put it in and forget about it.

Let the market do the work for you.

[Nicole]

Lump sum dump. Time IN the market beats timing/dollar cost averaging the market.

[Matthew]

I like idea of setting a strategy and sticking to it. Something like half lump sum, dca rest over next 12-24 months as automatic investments on monthly basis with caveat that you will accelerate by manually buying if key marks are triggered.

For example…

1. Buy 1 unit extra if there is any 2% dip in sp500 on any one day.

2. Buy half remaining cash if sp500 drops 10%.

3.Buy all remaining if it drops 20%

[Shawn]

I would do the lump sum and DRIP. But, that’s just me. If the market goes down you can invest more and get some on sale.

[Carl]

If you’re already had this money in the market (let’s say all in QQQ For the sake of argument) and you wanted to go all in on vti, would you sell all QQQ and DCA into vti, or would you just go all in on vti?

[Charlotte]

Would you be more upset if you do a lump-sum and the market goes down and you temporarily “lose” money, or more upset if you DCA it in and the market goes up and you miss out on gains?

[Author]

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