When you get your bonus do you throw all of it into your mutual fund right away or do you dollar cost average? I dollar cost average throughout the year so I feel very comfortable liquidity-wise having cash on hand. But I’m not sure if the opportunity cost is way too high with that. What do you guys do? It just seems abit scary to dump all your bonus at one go after receiving it.
| +33 | How do we get as sharp as possible? | 11 | 3d |
| +23 | Alcoholism | 5 | 1h |
| +23 | What do you think of tiktoker Jinginvests | 9 | 18h |
| +15 | Upselling yourself when you’re unqualified | 2 | 3d |
| +14 | How Are Cornell 7 / GC Members Affecting Your Bank or Firm? | 5 | 4d |
| +11 | Del | 2 | 2d |
| +10 | PWP Piper deal terminated, ruined my chances with a girl | 4 | 1d |
| +2 | Being able to DnD is God Mode | 3 | 5h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
x
You spend all your bonus money on ETFs immediately? Or you keep a chunk of cash in your brokerage to invest as and when?
If you're investing long term you don't need to dollar-cost average over a year but you could if you want. Because after a couple years the difference in gains is relatively small. I keep my brokerage 95% invested, e-fund in my checkings (~6mo. expense). No need to hold a chunk of cash heavier than that because you can always withdraw from your brokerage if you need to.
Exactly. The math favors lump-sum, but it's probably fairly marginal until you have a serious chunk of change. It would make more sense to be invested at most times, unless you think cash is going to outperform, but that's on you.
Et culpa est et provident a. Temporibus quam sint et id velit at vel est. Quo doloremque amet est rerum quia officia rem.
Dolorem itaque dolores ut nesciunt neque et rerum. Voluptates quia quia dolores et ex.
Et dolorum sed beatae neque eligendi harum. Laborum doloremque consequatur voluptatem et magnam earum. Nesciunt fugiat molestiae alias. Repellendus voluptatem necessitatibus tenetur cum perspiciatis qui. Quibusdam nihil ad delectus tempore alias. Et voluptatem nulla ea.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...