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How to Invest a Lump Sum of Money

How to Invest a Lump Sum of Money

Investing a lump sum of money comes down to the question of your tolerance for risk.

The lump-sum approach vs dollar-cost averaging

Suppose you received a windfall. Someone gave you a gift or you inherited a lot of money. Maybe you hit the lottery jackport or got a huge bonus. Here's the question you face: Should you invest it all right away or in smaller increments over time, a stategy known as dollar-cost averaging?

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