I have a problem that many of you would like to have as well. I just sold my condo that I used to live in, then rented out for a while. I had no mortgage on it, so the entire sale amount was given to me in one big fat check for $93,000. I have a few more days till the bank lifts the hold on my money, but then I'm going to spend it some where. By "spend it" I mean invest it or pay down debt.
I need help on something.
I'll probably end up paying down part of the highest rate debt I have with part of it. I'll probably put what is left into investments, some in 401k, some in taxable accounts, and some in Roth IRAs for wife and me next year. The issue I'm concerned about is whether I should buy into the market in one lump sum as soon as possible with whatever I'm going to put into my taxable account? Or, should I dollar cost average into the market over the next 6 months (or year or two, etc). I don't believe in market timing, so I don't know if the market is going to go up or down over the near future.
What would you do? Invest $50k-75k up front, or put 1/6 of the amount in each month till the end of the year? This amount is a substantial portion of my net worth.
I need help on something.
I'll probably end up paying down part of the highest rate debt I have with part of it. I'll probably put what is left into investments, some in 401k, some in taxable accounts, and some in Roth IRAs for wife and me next year. The issue I'm concerned about is whether I should buy into the market in one lump sum as soon as possible with whatever I'm going to put into my taxable account? Or, should I dollar cost average into the market over the next 6 months (or year or two, etc). I don't believe in market timing, so I don't know if the market is going to go up or down over the near future.
What would you do? Invest $50k-75k up front, or put 1/6 of the amount in each month till the end of the year? This amount is a substantial portion of my net worth.