Reply to 18.5 lump 401K contribution in Dec

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Reply to "18.5 lump 401K contribution in Dec - dollar cost average?"

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[quote=Anonymous]I'm in a similar situation, OP, in that I'm investing about $26K into mine over a six-month window from November through April because of some quirky timing of work and cash flow. (Different in that my plan doesn't allow dollar cost averaging within the plan, though, so for me it's just about when the contribution gets made.) I was initially trying to time that to the dips, but honestly it's hard to do. I gave up and decided to set it to automatically put ~$2500 twice a month so that my risk would be spread out. It's not perfect, but it's a lot less stressful and it doesn't pin everything on the timing of a one-time contribution. (Normally I try to do monthly contributions through the year, which also spreads out the risk of market volatility.)

If she's concerned about losing too much of it, she can also split it between a target retirement fund (which is going to bounce around a bit, especially if the market drops) and a more stable, but likely lower long-term yield, fund.[/quote]

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