Comments on: Roth IRA: Lump Sum or Dollar Cost Average? http://www.brokegradstudent.com/roth-ira-lump-sum-or-dollar-cost-average/ Paying back $22,000 in student loans by making money online Thu, 09 Feb 2012 04:42:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: * Weekly Highlights: January 23, 2009 http://www.brokegradstudent.com/roth-ira-lump-sum-or-dollar-cost-average/comment-page-1/#comment-3828 * Weekly Highlights: January 23, 2009 Wed, 08 Apr 2009 01:57:48 +0000 http://www.brokegradstudent.com/?p=3148#comment-3828 [...] only sensible annuity, and even it is expensive and should be considered carefully before buying.Roth IRA: Lump Sum or Dollar Cost Average? at Broke Grad Student — I think if you have the money to invest now, DCA is not the right [...] [...] only sensible annuity, and even it is expensive and should be considered carefully before buying.Roth IRA: Lump Sum or Dollar Cost Average? at Broke Grad Student — I think if you have the money to invest now, DCA is not the right [...]

]]> By: Moira http://www.brokegradstudent.com/roth-ira-lump-sum-or-dollar-cost-average/comment-page-1/#comment-2992 Moira Sun, 01 Feb 2009 02:50:28 +0000 http://www.brokegradstudent.com/?p=3148#comment-2992 I'd have to agree with you. I've got a Roth IRA too and I basically do my investment research, put all money it at once and buy my investment products. Dollar cost averaging doesn't seem useful when some of the mutual funds I buy have a $1000 minimum purchase prices. To use DCA I'd need to keep reinvesting in the funds and stock I already have and wouldn't be able to diversify. I’d have to agree with you. I’ve got a Roth IRA too and I basically do my investment research, put all money it at once and buy my investment products.
Dollar cost averaging doesn’t seem useful when some of the mutual funds I buy have a $1000 minimum purchase prices. To use DCA I’d need to keep reinvesting in the funds and stock I already have and wouldn’t be able to diversify.

]]> By: Phil http://www.brokegradstudent.com/roth-ira-lump-sum-or-dollar-cost-average/comment-page-1/#comment-2956 Phil Mon, 26 Jan 2009 09:03:19 +0000 http://www.brokegradstudent.com/?p=3148#comment-2956 The other advantage to investing in lump sum appears if you intend to invest your Roth IRA money in individual stocks or ETFs. Most discount brokerages offer free mutual fund trades and while you pay a fee for stock/ETF purchases (except Zecco which has the reverse model). If you DCA while still investing in stocks/ETF at a typical discount brokerage you wind up paying a good chunk of money in fees over the course of a year. Conversely, if you invest that money in a lump sum you minimize the fees for the stock/ETF investments. The other advantage to investing in lump sum appears if you intend to invest your Roth IRA money in individual stocks or ETFs. Most discount brokerages offer free mutual fund trades and while you pay a fee for stock/ETF purchases (except Zecco which has the reverse model). If you DCA while still investing in stocks/ETF at a typical discount brokerage you wind up paying a good chunk of money in fees over the course of a year. Conversely, if you invest that money in a lump sum you minimize the fees for the stock/ETF investments.

]]> By: MITBeta @ Don't Feed the Alligators http://www.brokegradstudent.com/roth-ira-lump-sum-or-dollar-cost-average/comment-page-1/#comment-2947 MITBeta @ Don't Feed the Alligators Sat, 24 Jan 2009 18:44:31 +0000 http://www.brokegradstudent.com/?p=3148#comment-2947 The bottom line here is that under most conditions, getting your money into the market as soon as possible is the best way to go. If I had $5000 to invest today, I would do so. If I only had $500, I would invest that too, and then invest another $500 next month, etc. There's no point to stretching out a $5000 investment over time. The bottom line here is that under most conditions, getting your money into the market as soon as possible is the best way to go. If I had $5000 to invest today, I would do so. If I only had $500, I would invest that too, and then invest another $500 next month, etc. There’s no point to stretching out a $5000 investment over time.

]]> By: Pinyo http://www.brokegradstudent.com/roth-ira-lump-sum-or-dollar-cost-average/comment-page-1/#comment-2936 Pinyo Fri, 23 Jan 2009 16:44:12 +0000 http://www.brokegradstudent.com/?p=3148#comment-2936 Congratulation on being able to max out 2009 IRA already. I still have another $2,500 to contribute for 2008, so I am definitely behind. But this what happens when you try to max out 401k and has IRAs for two person. If you have the money now, I think you should add it all in. DCA works in down and/or volatile market which we are in now. However, market timing doesn't work in the long run and in the long run the trend is for the market to go up so DCA doesn't work most of the time. Congratulation on being able to max out 2009 IRA already. I still have another $2,500 to contribute for 2008, so I am definitely behind. But this what happens when you try to max out 401k and has IRAs for two person.

If you have the money now, I think you should add it all in. DCA works in down and/or volatile market which we are in now. However, market timing doesn’t work in the long run and in the long run the trend is for the market to go up so DCA doesn’t work most of the time.

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