Earning more even with a lower rate of return

Remember the goal is not to maximize your rate of return but maximize your total amount on hand when you need the money.    Usually dollar cost averaging gives you a better rate of return at the end of the year than just putting your yearly investment into the fund at the beggining of the year.  thats because when prices are low you can buy more shares per hundred dollars and when prices are high you will buy less with that 100 dollars.  But if prices are higher at the end of the year then they are at the beggining of the year (Stocks are usually higher overall 3 years out of 4).  and if your alternate use of the funds is earning you less than the cheapest return during the year then you should invest as much as you can as early in the year as you can if you think prices will be higher at the end of the year.  This may reduce your annual return percent but increase your annual return in dollars because 12 months at 2 percent return beats one month of 5 percent return (especially if compounded).  So get the money out of your bank account that is earning less than 1 percent interest and put it in your retirement fund or goal fund in stocks or bonds.    This does not apply to money needed to repay debt or  money you need to be liquid for upcomming expenses or emergancy