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investing extra cash

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  • investing extra cash

    I am wondering how to invest an amount in taxable brokerage account that I have after CD matured. Should I invest portion of it every month for next 1 year or just invest lump sum. I plan to use total stock index fund in brokerage account. Does it make sense to keep it 90% total stock index/10% intermediate municipal bond fund? With recession looming, what do you guys think?

  • #2
    If you know that a "recession is looming", then why would you invest in the market? You should short it.

    But seriously, if you can stomach the volatility of a 20-30% crash in the market, then lump sum is the right move. If you cannot stomach it, then DCA over a year.


    • #3
      A recession is almost always looming depending on who you ask. Lump sum wins 2/3rds of the time but do what’s best for you. We don’t know if 90/10 is right for you based on the limited info. Are you greater than 10 years from retirement? If so, invest it all at once and don’t look back.


      • #4
        Lump sum for me but as said depends on what you will do when the "looming" recession happens


        • #5
          figure out your preferred asset allocation and invest excess cash accordingly.

          Lump sum is the evidence based answer.


          • #6
            Thanks everyone