2057: How Should I Invest a Lump Sum? By Chris Reining
Optimal Finance Daily - Financial Independence and Money Advice
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Why You Shouldn't Invest a Lump Sum All at Once
You can invest a lump sum all at once. You might even get slightly better gains, but you also have to be okay in not knowing if the market's going to crash. If someone handed me $1,200 today, I would invest it all now instead of bleeding it over 12 months. Vanguard looked at rolling 10 year periods in the stock market from 1926 to 2011 and tested the performance of lump sum investing versus dollar cost averaging.
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