Dollar cost averaging in a Roth IRA

Can you edit that post again so you can make it coherent?

No one knows. It depends on how the chosen mutual fund performs during the year and in relation to your funding points. Dollar cost averaging for your $5000 could be about $100 per week, about $200 every two weeks, etc. There are scenarios where you are better off dollar cost averaging. But, if the stock does a slow steady climb over the year you may be better off putting it all in at once. If I had the money readily available, I’d put it all in at once and forget about it until next year.

DCA works best long term because you acquire more shares within your mutual fund(s) in a down or correction market. The key is sticking with it in a correction market. Hypothetically you may end up with 100 more shares and Once the markets is up again, you have more shares at a higher price per share.

quote:

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Since the New Year's coming up. I am going to put 5000 in my Roth IRA. My question to you all would be Best for me to dollar cost average and buy a mutual fund that I'm currently in. Or just dump that $5000 into that one mutual fund on 1 January thanks

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If you have the lump sum to invest, then it is generally not prudent to dollar cost average.

OK, I think I understand what you're asking. You want to know whether to invest the lump sum right now, or average it over the course of the year?

Bearing in mind that nobody knows what the market will do month to month, I don't think it matters much. DCA is more of a multiyear strategy, something you do and stick with for a decade or more.

If you put in $5,000 every year at the first of the year you’re still dollar cost averaging over a 20, 30, or 40 year period……kinda, sorta.