42 yr old, receiving 2m inheritance. Should I invest in S&P 500 index fund in one go or better to dollar cost average over 1-2 yrs?

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Historically, putting it in as a lump sum works best 66% of the time. Honestly over long enough time frame it probably won’t matter dramatically so do what feels best to you

likehelpful

Sorry for your loss.

I said a prayer for you and your loved one.

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Oh my. Honestly, market is down right now from highs. I’d drop in a massive chunk right away, then maybe do more in a couple weeks. The swings will hurt more with that volume, but time is what matters.

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Put it in the market! I can’t recall the exactly numbers but lump sums invested early on outperform DCA most of the time.

Plus when you zoom out a bit- either scenario involves you investing 2M that wasn’t there before. So it’s a win either way! I would just put in the market now and avoid temptation of doing something else with it.

Also you mentioned this was an inheritance. I’m very sorry for your loss

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Ask this question in the ChooseFI Facebook group and you’ll get very good responses.

likesmart

Lump sum works out most of the time but with a very large sum of money like you had it doesn’t hurt to DCA in over a few months (wouldn’t go longer than a year). Contrary to what others are saying above, waiting to drop in a lump sum when the market dips would be called timing the market and doesn’t work out for retail investors the vast majority of the time. I would also look into a three fund portfolio for more diversification rather than just sp500

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What are you talking about lol I didn’t edit anything

I’d probably just put it all in right now. You’ll likely earn a decent dividend on all of the money being in the market, as opposed to having some of the money on the sidelines. It’s also very difficult to time the market, since no one really knows when it will head up or down.

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Correction is coming because of the inflation.

I would invest 20% of it now and wait a few months and continue investing slowly.

funny

AD1, I replied to Accenture 1. These days inflation is bad news for the stock market.

Dumb question but why don't you just diversify?

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Got it, diversification would smooth out volatility which I assume is why you were considering spreading out the investment of the money

You’ve said you are investing for the long term and don’t have any intention of touching the money. As others have said it’s best to just invest it now. People like to talk about DCA on the way down, but if the price doesn’t drop you raise your base. The other side of the risk is the market goes up and you pay more.

Historically, the market rises more years than it falls.

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That would be 36 BTC

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BTC is boomer coins, buy eth

likefunny

Lump sum while markets dipping

Depending on your risk tolerance also looking into buying a rental property and if you purchase it with all cash you have little risk on your end

Should I start burning dollar bills to stay warm?

Look into long-term care insurance, too.

Why not property?

Another option is investable liquid real estate through non traded REIT or something similar

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