How do you invest in IRA - Dollar Cost Averaging or Lump Sum?

[bank5]

I usually do lump sum a couple weeks or so before the contribution deadline. However, I'm wondering what people on here tend to do and if DCA is a better/safer approach.

[ziggy29]

I get paid twice a month. On each payday I transfer $416.66 from checking into a Roth, alternating between my wife's and mine so that each gets $416.66 per month, and then I invest accordingly.

[LOL!]

Lump sum into the cash sweep, then decide how to work the money into our asset allocation.

[charlie]

Those who lumped in last year got lumped! That includes me and
the inheritance I received in early September after the market had
already fallen quite a bit. I in my infinite wisdom decided that we
were at or near a bottom and the danger was remote. Then came
the "bottom" in November followed by the "real" bottom in early
March. Do you see a pattern here? The benefit of DCA is to avoid
investing at a market top. Studies over the years have shown that,
statistically, lumping in has a marginally higher return, but my advise
is don't be greedy......particularly if you are talking about a large sum
like an IRA roll-over.

You may miss some of the turnup we are presently enjoying but who
knows what's coming down the road?

Cheers,

charlie

[aaronc879]

I lump sum at the beginning of every year. I don't think there's a significant advantage either way. I do a lump sum at the beginning of the year because I don't have a large cash reserve and putting the max in all at once at the beginning of the year forces me to get my cash savings back up quickly. It's just a personal choice. It also eliminates the possibility of spending the money on something else and not maxing the IRA.