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No. of Recommendations: 5
I guess the question is how to know which is best to do -- put it all in at the first of the year, or DCA month-by-month. There's really no way to know, is there?

If you believe the market is going to go up, DCAing does not make sense - you should put ALL the money into the market NOW.

If you believe the market is going to go down, DCAing does not make sense - you should put NONE of the money into the market NOW. Hold your money in cash-equivalents until you think the market is going to go up, and THEN put ALL of the money in.

(Note: I'm assuming a long-only strategy here.)

If you really have no idea and don't want to study enough to form a reasoned opinion or actively time the market, the best approach is to bet on the long-term average - which is that the market goes up, so you should put ALL of the money into the market NOW.

If you are into actively timing the market, DCAing does not make sense - you should put the money in, or not, according to what your timing strategy says, not according to the calendar.

(Another note: just because you don't plan to buy stocks (or stock funds) now, is no reason not to move IRA money into the IRA.)
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