Reply to Investing a windfall in the stock market now? Dollar cost averaging? Lump sum? Wait?

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[quote=Anonymous][quote=Anonymous]If you're talking about what to do with the required minimum distributions, then the amount you will have to re-invest will be $10k/year, not $10k/week.  After backing out income taxes, you're not talking about a huge amount of money - something on the order of $600/month.  With dollar cost averaging, you're subjecting yourself to very limited risk as you build up on equities. If the market corrects, it's not a whole lot of downside.

The bigger question is what to do with the investments in the inherited IRA. How well balanced between equity, bonds/fixed income, and cash is it for your time horizon rather than his mom's?  Assuming it is a lot more in fixed income and cash, then you'd want a plan to re-balance into equities for the long term. Again, dollar cost averaging makes the most sense because it limits your risk as you take a riskier class of investments. The alternative would be to move it to equities in bigger chunks, subjecting you to more market risk, not less. If his mom had all equities, re-balancing it one fell swoop would make more sense.[/quote]

OP again: thanks for responding! Yes, we’re planning to use the RMDs to find my husband’s IRA. The question is how to invest the 330k that is sitting in a money market fund in the IRA into the stock market. It would be 2/3 of our liquid, non-retirement assets, so I’m afraid to invest it all at once. [/quote]

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