I normally deposit my money into my IRA account every paycheck, evenly spread out to max each year. However, I’m thinking for next year I pull from my HYSA and max out my IRA from the start. I’ll then replenish my HYSA per paycheck.
My initial thoughts on this (assume I only buy ETFs such as VOO):
Pro: I’m allowing myself to have more time in the market for my investments to compound.
Con: I’m buying in at one price point per year as opposed to dollar cost averaging my investments.
Thoughts?
Lump sum my IRA or spread out per paycheck?
byu/Oxyg3n-Potassium inMilitaryFinance
Posted by Oxyg3n-Potassium
1 Comment
It’s really not that important. What is important is to maximize and make it a habit. In 30 years you won’t care about the difference between 3.45 million or 3.40 million in retirement savings.