By investing the money all at once, you get to your target allocation immediately and, thus, have a higher expected return than if you kept a portion in cash,” says Lauren M.
“ The data show that investing the sum all at one time is better than dollar cost averaging. By investing the money all at once, you get to your target allocation immediately and, thus, have a higher expected return than if you kept a portion in cash,” says Lauren M. Niestradt, CFP, CFA, and senior portfolio manager at Truepoint Wealth Counsel. Your target allocation refers to the mix of stocks, bonds, and other assets you should own based on your goals and risk tolerance (more on this below) as well as how long you plan to invest.