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Subject:  Lump sum vs. dollar cost averaging Date:  1/28/2000  2:51 AM
Author:  lynnief10 Number:  18359 of 105366

I am 27 years old and have been a Fool for about a year now. I max out my 401K and put the $ in a S&P 500 index fund. I have had a Roth IRA in loaded, under-performing funds for '98 and '99. But no longer! The 2000s are gonnna be much more Foolish! I am going to start putting my Roth money into a fund that tracks the Wilshire 5000 (probably Vanguard). Should I bother dollar cost averaging or just put the $2000 in as one lump sum? Couldn't I just keep my eye out for a "down" day and buy in all at once instead of potentially buying as the market goes up, up, up. I have done DCA in other taxable accounts and it seems that my purchase often goes through on more "up" than "down" days. Also, should I liquidate the Roth $ that I already have in the loaded funds and transfer it into the 5000 index fund? In '98, I put $2000 into a Franklin Templeton fund that has done AWFUL the past two years. My '99 $ went into Massachusetts Investors Trust-not doing anything great after load is considered. Any suggestions/comments would be appreciated.

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