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Originally Posted by scfr
I agree completely about not trying to time the market.
Dollar-cost averaging is a good idea.
But if you'd rather invest all of your money at one time, if you are planning on investing in a mutual fund you may want to look at when they distribute their capital gains, so you don't end up getting taxed. For example, on the money coming in at Christmas, you may want to wait until after the first of the year to invest it.
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These tax implications do not apply to investors holding a fund in a tax-favored account such as an IRA or an employer-sponsored retirement plan.
Generally, the distribution amount reduces the share price by the same amount. Most people then have their distribution reinvested therefore buying you more shares at the lower price.
I agree on the dollar cost averaging, but if you have the money now...don't let the distribution of capital gains deter you if this is a ira or other retirement account.