Excerpt: If you really don't have much money with which to invest at any one time, dollar-cost averaging may be a sensible option for you. And with 401(k)s, dollar-cost averaging is the way to go. I'm not here to dismiss the strategy completely. But if you're able to invest lump sums, that might be a smarter move. Why? Well, think about the stock market's overall trend: Sure, it's a jagged line, dipping now and then, and even crashing on occasion. But overall, over long periods, it has gone up, averaging about 10% per year. If the market goes up significantly more often than it goes down -- as is the case with most healthy stocks -- then you'll end up paying a higher average price for your investment by dollar-cost averaging than by plunking in a lump sum.  MORE >>