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How does one go about investing a Large LUMP SUM. At retirement I expect to recieve a Lump Sum payment - representing 50-60% of my retirement savings.

I plan on taking 5 years of retirement expenses out of this amount and keeping it aside in cash/cash equivalents as part of my "fixed income" allocation. This will leave me eventually investing most of the remainder in equities to acheive a balanced portfolio.

My concern is that - It doesn't seem prudent to invest most of your savings into the Market on any one specific day. Intuitively it seems that I should invest this over some period of time in order to cost average my investments.

Does this make sense? I would appreciate anyone elses opinion on this question.

(I am simplifying this illustration, realizing that the investments will be spread over differing asset classes and sub-classes as monies are invested.)

Thanks -

Joe Simcoe
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