DCA suggestions in this market?

[Fisherman60]

My first post here. Been lurking for quite sometime.

Thinking of buying into this market and not sure of what time frame due to volatility. This money won’t be needed for 5-10 years.

Invest weekly over 2 or 3 months or monthly over 6 or 12 months?

Or just stay out of the market?

Thanks in advance

 

[njhowie]

Monthly

You have a long term horizon, so no need to race in.

 

[Toocold]

My strategy has been to invest monthly or if the stock market drops by another 10%. Make it automatic so you don't need to look at the movements on the daily basis.

 

[Fisherman60]

We have 500k or more to invest. I like the idea of monthly. Suggestions on to invest over a 6 month period or monthly till end of year?

 

[Toocold]

I invest 10% of my cash. Originally (in February), I was planning to DCA on a monthly basis so that by the end of 2020 I would be fully invested. With market fluctuations, I accelerated some investments. My thinking was (and still is to a point) that by the start of 2021, it will become more normal - I may be wrong on this. If you think there will be continued market turmoil, I would DCA over 12 to 18 months. If you think there will be stabilization, I would DCA over 6-12 months.

 

[audreyh1]

Going through 2000-2002 I ended up investing quarterly, I used 2 years but I had a very large amount.

And this was when I had recently retired. If you really have a 10 year horizon it doesn’t matter so much. 5 years? Funds I thought I might need in 5 years I would not invest in equities.