Reply to Still put $2K per month into the market or 529s?

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Reply to "Still put $2K per month into the market or 529s?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Isn't this a good time to be funneling money in, when the market is low?  We do dollar cost average with regularly monthly contributions.

But that being said, we maximize the 529s first and invest the rest.[/quote]

We dollar-cost average as well just due to cashflow demands, but several studies have show you actually get a better return if you would put the same amount of money in all at once in the beginning of the DCA period. I'll try and find the studies to share here, if you are interested.[/quote]

DP and I know the studies you mean, but that's more relevant for someone getting an inheritance or sitting on a significant lump sum of cash and trying to decide how to get it into the market.  For most investors who put money in every payday, they're both dollar cost averaging across the year (in the sense of not trying to time the market), and putting it in at the beginning of the "DCA period" for that money (in the sense of investing all of it as soon as it's available instead of something like every three days until the next available pot of money shows up to be invested with the next paycheck).[/quote]

Well this all ended up being moot because OP is sitting on a significant lump sum of cash.  OP, put it in the market and then forget about it.  $100k to each 529, the rest to a brokerage.[/quote]

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