Got extra cash for long-term #investing?

My preference is to invest it all at once.

I have a few reasons why:

1.) The Market Usually Goes Up

Historically, the stock market rises about three out of every four years. That’s the reason we invest: on average, markets increase over time.

To play the odds, investing all at once gives you more time in the market.

2.) A Short-Term Fix for a Long-Term Problem

Dollar-cost averaging (DCA) often helps manage discomfort, but it’s usually not the best solution.

If you’re nervous about going all in, the real issue might be taking on too much risk. In that case, consider lowering your stock exposure or using part of the money to buy a low-cost

annuity.

3.) Behavioral Finance

DCA can be more emotionally difficult. It invites second-guessing and inconsistent follow-through.

4.) Simplicity

Investing all at once simplifies your financial life. Fewer moving parts, fewer decisions.

5.) Tax Complexity

In taxable accounts, DCA creates more tax lots, complicating future rebalancing. It may also increase your first-year tax bill if you can’t sell only long-term lots during rebalancing.

6.) Markets Can Stay Expensive

Just because markets feel overpriced doesn’t mean they’ll drop.

Markets can go from expensive to even more expensive; waiting often means missing out.