B
enzinga and Yahoo Finance may earn commissions on some items through the links below. For those with significant savings, deciding where to put their money for the best returns can be a daunting task. Options like building a business or investing in an index fund, such as Vanguard's VOO or VTI, promise exceptional benefits but come with different risks and strategies.

    A 44-year-old Reddit poster with $700K to invest owns a home and rental property with a $200K mortgage left to pay. Despite his strong financial position, he's crippled by fear of market instability and worries about buying into what investors see as a market peak. He's unsure when to enter the market, considering DCA (Dollar-Cost Averaging) into Vanguard's VOO or VTI but hasn't decided yet.

    Redditors have shared their suggestions with the investor, focusing on whether to invest the lump sum or use DCA and how to balance his portfolio to control risk. Many commenters highlighted the statistical edge of going with a lump sum of money compared to a smaller amount. "Statistically, lump summing works better than dollar cost averaging," a Reddit member wrote. Delaying investment could cost the 44-year-old substantial opportunity costs when it comes to a large sum like this.