[Lii]

I got 7k to invest in roth sp500 for year 2025. Should i buy 7k once or even it out 583$ every month?

I’m considering investing in a Roth IRA focused on an S&P 500 index fund. Should I contribute the entire $7,000 at the start of the year or spread it out into $583 monthly installments?

I’d appreciate insights on potential market performance, dollar-cost averaging, and any other factors that might influence this decision.

Thanks

[Eric]

The goal should always be to get your cost average down. No need to go all in at once that’s dumb. Buy the dips, the market doesn’t go in straight lines.

You’ll have plenty of opportunities to buy throughout the year.

Time in Market counts over the long term not a year.

If there is a 5+% dip buy a little, rinse and repeat, no rush. Good Luck.

[Ioana]

I would do it all at once so more of your money has more time in the market, assuming you do it early in the year.

[John]

I did mine sll at one 2 years 1 year reg snd other eas carch up. Made 3 grand so far in 12 months

[Tristan]

Invest it for 2024 and then start putting whatever else you can in to 2025

[Lauren]

No one knows the future, but people can do math on the past, and it’s 60% chance your lump sum deposit will outperform dollar cost averaging, 40% chance DCA will win, because, like they say, time in the market beats timing the market.

So, do whatever helps you sleep better at night.

[Rawee]

We’re not in normal times, so I’d dollar cost average by investing $585 per month into any VOO or VTI or whatever. This is what I’m doing for my $7k in for my Roth and $23k for my 401k in 2025.

Why? Market is at 24x forward multiples right now, that’s extremely toppy when typical range is 18-20 PE. Plus, new administration coming in with interesting ideas.

After back-to-back 20%+ years, indicators are correction or slow-down in the coming year. Fed is mandating 3.5% Fed funds rate by EOY 2025.

That’s a high cost of capital to borrow for businesses for labor, R&D, operating expenses, etc.

IMO, headwinds coming in 2025, so dollar cost averaging is a safe play for new capital for those of us without a crystal ball

[Ben]

Time in the market > timing the market.
I was in same boat as you recently. I just put it all in. It has gone up and has gone down but I am up overall.

I do expect to go negative a bit at some point but in the long run I will be ahead.

[Jonathan]

Maybe do a 1/3 now and wait and see… I think it’s a very real possibility to see the 5200-5400 area/level get a revisit sometime between mid Jan to mid April.

[Stan]

Honestly, it depends.
Buy stocks and funds the same way you buy anything else.
Is it a good value for the money?

PE ratios are good way to determine value.

If the market is at an all time high, I would buy on dips.
Look at the 52 week high low of the fund or security you are considering.

Dollar cost averaging is a great way to keep your average costs low. But I would weight the amount a little heavier on dips

[Author]

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