When you receive a lump sum of cash, should you invest it all at once or should you dollar cost average into the market?

It's a big question that comes up over and over again.

And in today's episode, we're not only going to address it, but we're going to see how that potentially fits within the context of someone's actual financial situation.

This is another episode of Ready for Retirement.

I'm your host, James Cannell, and I'm here to teach you how to get the most out of life with your money.

And now, on to the episode.

We're going to explore this question of lump sum investing versus dollar cost average investing, but we're not just going to do it in a vacuum.

We will do that.

I want to do it in the context of someone's actual financial situation.

So today's episode is based

upon a listener question. This question comes from Tyler, and Tyler says the following. He says,

Hi, James, I've truly enjoyed listening to your podcast and watching your YouTube videos. You're

able to break down a variety of issues and explain them so well. I've also recommended you to

many of my friends who are approaching retirement like me.

Thank you for all the useful content. I have a question and would really love to hear your thoughts if you have time. I am 44 and my wife is 43. I am a police officer and my wife is an at-home preschool

teacher. Combined, we make $250,000 annually. We would like to retire in two years or less and I have

a question of how to invest

a lump sum and also your overall thoughts on our situation. We have $600,000 of equity in our

home, which we plan to sell in two years when my youngest daughter graduates high school.

We plan on moving to our vacation home, which is paid for, and valued at approximately

$750,000. Currently, I have $400,000 in my

$457 account and $250,000 in a 401k, of which I max out my contributions annually.

...