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WallStMonky: But if you prefer throwing the whole $3000 in at once, and are ignoring portfolio

I don't understand why you think that just because someone makes their IRA contribution once per year instead of twelve times per year for example, that they are ignoring portfolio diversification.

I make my IRA contribution in January of each year. I intend this year to choose an ETF and I believe that for me that is diversification. It helps me diversify from my 457 plan which contains aggressive growth funds and bonds. Just because someone uses ETF's does not mean that they are ignoring portfolio diversification. I think it unwise to use generalizations. Additionally, I believe that making my IRA contribution in January of each year is a method of dollar cost averaging. Some January's may be up and some down, but over time it averages out. Just something to think about.

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