UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TTRoberts Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Re: Roth Contribution techniques Date: 1/22/2003 7:09 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
thisguyntx, you asked:

<< I have a question about Roth IRA contribution techniques. For those of you that have a Roth, do you put all your money into the given investment(s) in one lump sum at a certain time? Or, do you dollar-cost average over the year or only at certain times during the year? I've heard several recommendations on this and am not sure which presents the greater advantage--especially the one about dollar-cost averaging in the months of July and October. Thoughts or opinions? >>

Dollar-cost-averaging is really just about reducing risk. So if there is some particular concern about a major move downward over a period of time, then dollar-cost-averaging over that period of time makes a lot of sense. But if one feels there's a better than average chance of the market moving upward over that period, just lump-summing would make more sense. This is a risk management issue one needs to make a decision on based on their own risk tolerance.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement