Spartacus
Dryer sheet aficionado
- Joined
- Oct 10, 2009
- Messages
- 43
I'm leaving for FIRE in a month. Will move $500,000 out of maturing/CD's and other money markets into a very well diversified portfolio of domestic, foreign, reit, and bond funds...all index funds.
My question is, do I insert this $500,000 over a 12 month period on a dollar cost average method to protect against the downside?
Couldn't I also be missing out on the rise of the bull if I do dollar cost average?
Also will need my 4% or so SWR out of this, so dollar costing won't allow me much div/interest payments as I'd get by socking it all in there at once.
If I had 5 or more years to go, I'd dollar cost average it. But, I only have a month to go, then will need to tap into this money.
What would the rational pros say?
Any thoughts would be greatly appreciated!
My question is, do I insert this $500,000 over a 12 month period on a dollar cost average method to protect against the downside?
Couldn't I also be missing out on the rise of the bull if I do dollar cost average?
Also will need my 4% or so SWR out of this, so dollar costing won't allow me much div/interest payments as I'd get by socking it all in there at once.
If I had 5 or more years to go, I'd dollar cost average it. But, I only have a month to go, then will need to tap into this money.
What would the rational pros say?
Any thoughts would be greatly appreciated!