[USER]

throughout the year I save a certain amount of money each month to fund NEXT years ROTH IRA. So come Jan/Feb I have the full amount to fund both my and my husband’s accounts for the year.

Do you think it’s okay to dump the whole amount in throughout 2 months?

or would you dollar cost average over a larger time frame?

It’s just sitting in HYSA so I don’t want let it sit for too long.

[John]

I feel good about getting the whole years growth and getting it off my mind but in the long run it doesn’t matter

[Lacey]

I do the same as you and lump sum it in January. Want the full year’s growth on the full $7k!

[Jean]

Lump sum. Roth will be the last vehicle you’ll take money from so you have loads of time to

Let it grow.

[Sean]

You’ve let it sit all year, and now you want to let it sit longer? That’s really not ideal.

The best option is to invest as much as you can as soon as you can.

[Scott]

Long term it won’t matter much. I always wait until I get my taxes figured out and then do my moves then.

[Gonzalo]

Do it all at once. I do something similar. I fund a bucket in my HYSA all year, so that I can complete my backdoor Roth in early January. I just finished that all today.

It has been said that in long-term investing situations, for something like 70% of the time, lump sum (versus DCA) has been shown to be the better approach.

Just do it all at once, congratule yourself, and move onto your other goals.

[Ellen]

Statistically, you do better when you invest it in a lump sum, but you should do what makes you comfortable.

You never know when the market will drop.

[Author]

Posts