Why You Shouldn't Invest a Lump Sum at Once
If you find yourself with a lump sum of money -- whether from a bonus, inheritance, winning the lottery, or any event of sorts -- you may be tempted to invest it all at once. However, using the dollar-cost averaging investment strategy may be a better way to put your money to work. Even if you don't have a lump sum to invest, using dollar-cost averaging is a great strategy to help anyone ease into investing.
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Dollar-cost averaging involves investing specific amounts of money at regular intervals, regardless of the price at the time. For example, if you have $10,000 you're able to invest, instead of buying $10,000 worth of stocks at once, you may decide to break it down like the following:
Source Fool.com
