I’ll try my best to be short but it may get a little confusing for some so just ask questions if you got them. I’m 26 years old and for the first time, I feel pretty overwhelmed with investing and I’m sitting on lots of cash with more on the way! I worked a commission based sales job for 10 months this year and have been receiving a lot of checks recently. I have about 25k in cash with about 30-40k more on the way. To give you some back story, I have 3 investment accounts 1.) Roth / Tradtional 401k from previous employer (15k) 2.) Personal investment account for building dividends/risky trades (20k) 3.) Edwards jones actively managed account (40k)

I’m fine on savings and I’m willing to max out my 401k before the end of the year and start DCAing into 2023s. Is this a smart move? I don’t want to dump a lot of cash into the market at once but also don’t want to DCA with 50k cash. Any ideas on plays here?

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Werewolfdad t1_iujdlms wrote on October 31, 2022 at 7:44 PM

Https://www.reddit.com/r/personalfinance/wiki/commontopics

Devincc OP t1_iujdrfs wrote on October 31, 2022 at 7:46 PM

Thanks! I had forgotten about this link. I will go ahead and refer to this chart but I will keep this thread going just in case some new ideas come through!

[deleted] t1_iujdaag wrote on October 31, 2022 at 7:42 PM

[removed]

DaemonTargaryen2024 t1_iujecoo wrote on October 31, 2022 at 7:50 PM

Statistically lump sum is the best move, DCA second best.

Psychologically it's totally fair if you'd rather DCA. But if you're comfortable with lump sum, get it into your 401k, you'll never have another opportunity to make 2022 year contributions. And your 401k is for 40+ years from now, so who cares what the market does in the short term anyway?

Devincc OP t1_iujemei wrote on October 31, 2022 at 7:51 PM

I agree. I stopped contributing to my previous employers 401K program about 2 years ago. Should I close that account and rollover to vanguard and start new there? Or maybe with TD Ameritrade since I already have my personal investment account with them? Guess i should look into fees and plan structures

DaemonTargaryen2024 t1_iujfldy wrote on October 31, 2022 at 7:58 PM

Considerations are: fees, investment options, personal preference.

So if the old 401k has high fees and/or poor investment options, usually better to roll it over. Most brokerages have no administrative fees and low fund expense ratios. Shop around and compare fees, services, etc.