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How long to drip feed lump sum

7 replies

Amboseli · 02/08/2023 06:22

How long would you take to drip feed a lump sum of £135k into the market? It's currently sitting in a money market fund in a pension.

Drip feed will be 80% into a global tracker plus a few satellite funds.

I've heard that 65% of the time it's better to put in a lump sum rather than drip feed but I don't have the stomach for that!

OP posts:
greenteaandmarshmallows · 02/08/2023 06:25

A year

Amboseli · 02/08/2023 06:40

Thanks would you do it monthly? That's approx 10k per month which seems like a lot!

This will be in addition to usual monthly contributions of 5k per month so 15k per month total.

OP posts:
greenteaandmarshmallows · 02/08/2023 06:43

Yes monthly or fortnightly. If you're not comfortable with that just fix to an amount you're comfortable with a month. £5000 extra?

Amboseli · 02/08/2023 09:05

Hi, thanks. I think maybe 5000 extra per month although that would take 27 months to fully feed in. Over 2 years. I think I'll start with an extra 5k and see how it goes. From what I've read valuations are high right now so will start small and increase if prices go down.

OP posts:
nannynick · 02/08/2023 09:40

As short a period as you can stomach.

Make it automatic if possible, so every week on say a Wednesday £x amount gets invested.

Amboseli · 02/08/2023 16:21

@@nannynick ok good idea. How much would you suggest once a week?

OP posts:
nannynick · 02/08/2023 17:17

Yes, set a day/time you make the transaction, and stick to the timetable you set. Then you are not swayed by market forces.

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