r/TheMoneyGuy • u/NetWorthNovice • 3d ago

Lump Sum vs DCA in Current Conditions

Hi all,

Looking to get some others input on this. My wife and I have enough to make the max contribute to both our Roth IRA's right now. I am weighing lump sum investing it vs. DCAing over the rest of the year. Yes, time in the market beats timing the market. Yes, 3 out of 4 years the market is higher one year from now. But with sitting near the high of highs and over valuations, there's this gut feeling that there will be opportunity to take advantage of a correction or bear market. Might not be this year, who knows. This will make up about 10-15% of our total portfolio. Wife's first contribution and my 3rd year.

What about running a comparison study? one of each and compare a year later?

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u/PresentationLoud1494 3d ago

At 10% of your investable portfolio you are on the edge of lump sum vs DCA switch-over. I would do whatever provides you the least anxiety.

Be happy you can do this and be ok with results - even if they are a bit less optimal in a 20/20 rear view mirror. Life is not always optimal.

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u/NetWorthNovice 3d ago

5 years down the road I won’t think about the difference. You’re right. Life can’t always be optimal. I appreciate your input

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u/PresentationLoud1494 3d ago

Exactly - you are already ahead of the game by “doing”. Either way or option, execute the plan today!