text: It´s a good idea to invest but you need a plan. \n\nInstead of investing assets in a lump sum, you can work your way into an investment position by slowly buying small amounts each month. This spreads the cost basis out over several years, providing insulation against up and down periods of the stock market. \n\nThis method is called Dollar Cost Averaging.\n\nIn order to begin a dollar cost averaging plan, you must do three things:\n1. Decide exactly how much money you can invest each month. Make certain that you are financially capable of keeping the amount consistent; otherwise the plan will not be as effective.\n 2. Select an investment (index funds are particularly appropriate) that you want to hold for the long term, preferably five to ten years or longer.\n 3. At regular intervals (monthly or quarterly works best), invest that money into the funds you’ve chosen. If your broker offers it, set up an automatic withdrawal plan so the process becomes automated. \n\nThis idea works even better in a tax deferred savings plan like a 401K in the USA.\n\nThe source refers to Dollar Cost averaging, but the whole site is interesting.