Is this a bear market rally we’re witnessing in the stock market or the beginning of a stock market recovery? Do I get back into the market now or wait a little longer? If I do get back in, what do I buy?

These are just a few of the many questions I’ve been asked recently. After the recent drubbing we received from the stock market crash, these are not decisions to be made lightly.

Here are some ideas on how best to proceed.

• There are reports that money market funds, saving accounts and CD’s are holding close to $15 trillion dollars. That’s a lot of money that’s been parked on the sidelines earning 1-3%. After experiencing the boom years of a robust stock market, earning 2% in a money market account feels downright boring. Yes, its money that’s safe and sound, you know your principal will not lose value and you sleep easier at night.

But what if the stock market takes off this month, how will you feel? Will you feel like you’re missing out on the recovery and it’s time to jump back in or does your gut tell you this is a suckers rally and you’re not going to get burned again.

• One way to approach this volatile and uncertain market is to dollar cost average. For example, say you have $300,000 sitting in a money market account earning 2% interest. You pulled all your money out of the market last year, parked it in a money market account but now you’re thinking and feeling it’s time to get back in. Putting it all back into the market in one lump sum could be a very risky maneuver. A better approach would be to take that $300,000, divide it by 6, or better yet 12 months and invest that amount each month. That way, there may be some months where you’re buying high, some months where you’re buying low, but by dollar cost averaging (DCA) you’re average cost per share will balance out the high months and the low months.

The other conundrum investor’s face is what to buy? How much to put into equities and how much to put into bonds and other asset classes.

• First and foremost, make sure your investment strategy is in alignment with your short, medium and long term goals. Develop a financial plan that looks at the big picture, your whole life, not just your investments. This is why I believe so strongly in a holistic approach to financial planning. It’s your money AND your life that needs to be in alignment with your values. That’s the path to peace of mind.

• And finally, if you’re confused and unsure of what mutual funds would be best to purchase at this time; how best to allocate your money into different asset classes, don’t forget about the all in one funds that Vanguard offers. Vanguard's Target Retirement Funds and their Life Strategy Funds offer a simple and easy way to create a diversified portfolio with the purchase of one mutual fund. These are also referred to as lifecycle funds. They rebalance automatically, are comprised mostly of low cost, no load index funds and offer investors an alternative to the maze and confusion designing a diversified portfolio entails.

Unless you have a crystal ball, it’s hard to predict what the stock market will do tomorrow let alone next year. Take your time, think through what your options are and if you need some investment guidance, please don’t hesitate to call.