So I’m a 32M with a kid on the way. I’ve been heavily invested in real estate for the last ten years. Starting in 24 I started maxing out my ROTH IRA and have done so for 25. I currently have about 20k on the sidelines after maxing my ROTH, contributing 10 percent plus match to my 401k, and filled my emergency fund in a HYSA.
I currently have my portfolio cash in SPAXX and automatically buying in 500 a month into the SP500 (FXIAX). After reading about DCA Vs lump summing I understand it’s marginally better to lump sum but I’d also like to put some of this into a fund for my kid.
So my question is should I just lump sum into the sp500 or is there a better long term investment assuming this money is meant for 25+ years from now. DCA helps mitigate risk which is appealing but probably doesn’t matter long term. So buy in at the “top”? Or DCA and buy more on the red days? I’m not interested in timing the market just by guessing, more so is spreading the payment monthly a better value during volatile times as you may absorb those red days and gain value on your base.