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Subject:  Re: Roth IRA deposits Date:  11/14/2003  1:41 PM
Author:  CABob Number:  37831 of 88063

I think one needs to distinguish between forced or natural DCA such as in a 401k funded by payroll deductions or budgeted investments where a dollar amount is regularly put in and the decision whether to DCA or invest lump sum new found money (think inheritance or lottery win). In the first case it is natural to DCA as the money becomes available. In the second case with a significant amount of money that suddenly becomes available there is a reasonable debate on whether DCA is appropriate and both sides have merit. The correct decision will depend on whether the market goes up or goes down during the investment period. And unfortunatly no one knows that until it is all over.

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