Lump Sum vs. Dollar Cost Avg.
What’s the best way to invest your bonus given it’s paid in a lump sum? Dollar cost averaging (over what time period?) or just throwing it all in the market at once
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Personally, I DCA, then put a larger lump sum during bonus time. You can also park some of it in a HYSA or short term CD to lock in some good rates
Time in the market >> timing the market.
DCA your salary and lump sum whenever you receive bonus.
Obviously don’t save up your salary to lump sum, my point is get your money in there soon as possible. You will have to DCA AND lump sum to achieve that.
This is how I’m thinking about going about it. Dollar cost averaging my 401k every paycheck but feels silly to me to not just dump the bonus cash into market asap
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