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SmartMoney magazine published my Roth IRA question

Back in November, I was trying to decide whether to make my 2010 Roth IRA contribution as a lump sum or to use dollar cost averaging, so I sent this question to a few financial magazine editors and podcast hosts:

"I'm planning ahead for my 2010 Roth IRA contribution, and am wondering how best to contribute. Which of these choices is best?
  1. Lump sum: Deposit the entire $5000 in January
  2. Dollar cost averaging: Divide the $5000 into even weekly or monthly increments throughout 2010
And while you're answering that, what's the preferred method in general, if you have a lump sum available? Investing it all at once, or using dollar cost averaging?"
Stephanie AuWerter, a contributing editor of SmartMoney Magazine, replied that my question would be published in their March issue! I finally got a copy of the issue from the library this week, and found my question printed on page 36 (see below). You can also read my Roth IRA question and the SmartMoney answer on the SmartMoney website (question #3).

Short answer: lump sum beats dollar cost averaging. I was relieved to read that answer, because that's what I did in January! If you remain unconvinced, check out the Charles Schwab article What's the Right Time to Invest?


Jess Holmes said…
The fact that your question was actually published is pretty great; thanks for sharing it here! I sent in some of my own questions about self directed IRA rules, but I was never lucky enough to receive a published response.

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