Skip to main content
No. of Recommendations: 1
..First, read this paper Enhanced Dollar Cost Averaging
The first section neatly discusses the problems with DCA, but summarises "Thus, dollar-cost-averaging may be inferior to the optimal strategy, but is superior to the strategy most investors are likely to adopt as a result of their human nature."

I've also heard good things about value averaging. The Wikipedia entry for this dosn't say a lot but it has some interesting links at the bottom of the page that would be worth looking into.

It probably goes without saying but while you are deciding what to do you should be sure that the money is split up between multiple accounts and institutions so that you do not exceed the FDIC( or similar ) account insurance limits.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.