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If I start investing would it be better to dump a bunch of money all at once
Posted on 3/24/24 at 9:09 am
Posted on 3/24/24 at 9:09 am
Or incrementally invest monthly? I know this is probably a really stupid question but I didn’t see anything that seemed to answer my question in the faq list. The only thing I’ve ever put anything into is my 401k so this is new to me
14
Posted on 3/24/24 at 9:14 am to Hawgnsincebirth55
There’s no right or wrong answer. I personally would invest in increments at the moment with markets so high. Nobody really knows, the anticipated rate cuts could be priced in already, and election years are generally unpredictable. Good luck
Posted on 3/24/24 at 9:16 am to Hawgnsincebirth55
If you’re moving a chunk of money I would dollar cost average to minimize the chance of an initial loss off the bat due to timing. But if it’s for a long term investment I don’t think it makes much difference TBH.
Posted on 3/24/24 at 9:17 am to SquatchDawg
This would be for long term
Posted on 3/24/24 at 9:51 am to Hawgnsincebirth55
Long term, lump sum mathematically beats dollar cost averaging more often than not. But of course, there is luck involved and emotional discipline. If you might panic sell if you see it drop then dollar cost averaging may be better tactic to increase odds you stay the course.
DCA is better than saving up to invest a lump sum all at once but if you already have the $ accumulated lump sum more often than not putting it to work all at once is best for returns. People often misinterpret this concept and think they should incrementally invest even when they already have a large waiting to deploy. That might be better emotionally but doesnt work out better on average assuming you stay the course.
DCA is better than saving up to invest a lump sum all at once but if you already have the $ accumulated lump sum more often than not putting it to work all at once is best for returns. People often misinterpret this concept and think they should incrementally invest even when they already have a large waiting to deploy. That might be better emotionally but doesnt work out better on average assuming you stay the course.
Posted on 3/24/24 at 10:08 am to Hawgnsincebirth55
Someone here did an analysis on this recently, and quite simply, the market goes up more than it goes down. So, lump sum is best.
That said, psychologically, it's tough to dump everything at once when the market is at an all time high after a recent run up. I should know, I've been holding a big chunk of money that I wanted to invest since January, but have been so hesitant (I've invested small amounts here and there but still have a good amount in cash waiting for a pullback).
That said, psychologically, it's tough to dump everything at once when the market is at an all time high after a recent run up. I should know, I've been holding a big chunk of money that I wanted to invest since January, but have been so hesitant (I've invested small amounts here and there but still have a good amount in cash waiting for a pullback).
Posted on 3/24/24 at 10:11 am to 632627
Other posters have hit it…market goes up more than down. Lump sum beats DCA about 2/3 of the time per a Vanguard study. DCA is typically better psychologically.
Posted on 3/24/24 at 10:19 am to Hawgnsincebirth55
If you can stomach 10 or 20% declines without flinching lump sum.
DCA will give you piece of mind if you can’t handle market swings
DCA will give you piece of mind if you can’t handle market swings
Posted on 3/24/24 at 11:25 am to Hawgnsincebirth55
If it’s long term and tax advantaged then all at once. If it’s not, DCA as others have said. Thats my personal approach.
Posted on 3/24/24 at 11:37 am to TorchtheFlyingTiger
Okay cool. I was thinking of putting 15k in S&P and basically forgetting about it for 10/15 years would that be wise?
Posted on 3/24/24 at 12:19 pm to Hawgnsincebirth55
quote:
Okay cool. I was thinking of putting 15k in S&P and basically forgetting about it for 10/15 years would that be wise?
Yes, or, if you want to be a little more aggressive you can do something like vug, voog, mgk which is just the big growth companies that have been propping up the market the last several years.
This post was edited on 3/24/24 at 12:22 pm
Posted on 3/24/24 at 2:06 pm to Hawgnsincebirth55
I dumped everything into money market last month with the expectation trouble was ahead. That seems to have not borne fruit. I'll get back in some time around Q3.
If Trump wins I think you gonna see an initial thump and then it'll burn like rocket fuel.
Trump economic policy is true kick the can. Biden is market manipulation IMO.
There is no timing the market.
If Trump wins I think you gonna see an initial thump and then it'll burn like rocket fuel.
Trump economic policy is true kick the can. Biden is market manipulation IMO.
There is no timing the market.
Posted on 3/24/24 at 5:22 pm to Hawgnsincebirth55
Split the difference. Put half in now and put the other half in a mm fund. Invest the rest in three different increments stretched out over 3 month intervals. If you get a market sell off of 7.5% from current levels, just buy the rest all at once.
Posted on 3/24/24 at 5:29 pm to Hawgnsincebirth55
Think about all the times you see a huge pullback and think to yourself, “Damn, if I only I had some cash right now”. I know I’m not alone.
I personally lack the discipline I preach. I try, but more often then not, I hit that buy button.
I personally lack the discipline I preach. I try, but more often then not, I hit that buy button.
Posted on 3/24/24 at 5:38 pm to CecilShortsHisPants
It’s best to pick an investment philosophy and stick to your guns. Sometimes it’s hard with swings going up or down.
Very few people are able to time market correctly.
Very few people are able to time market correctly.
Posted on 3/24/24 at 6:40 pm to kaaj24
Best time to buy is now. There’s some great value out there but there is a lot of unknown and stocks at the 5 year high. To me apple screams buy, Pfizer screams buy, O screams buy. To me Microsoft and meta both are buys even though they are high but I think their stocks will explode due to their AI investments. I would hold AXP just not low enough to buy. Visa seems like a good buy right now
Posted on 3/26/24 at 9:00 pm to Hawgnsincebirth55
It’s about time in the market, not timing the market. Lump sum if for long term.
Posted on 3/27/24 at 11:05 am to Hawgnsincebirth55
I just put my life savings in Truth Social.
Can’t lose
Can’t lose
Posted on 3/27/24 at 1:37 pm to Hawgnsincebirth55
With the market so high and an election year, I would phase it in. Not sure how much you are talking about. Right now you can get decent short term CDs at banks and use that as sideline money. Try to ladder the CDs. As they mature then see where the market is at and what is available to invest.
The market is due for a correction.
The market is due for a correction.
Posted on 3/30/24 at 8:29 pm to 632627
quote:
should know, I've been holding a big chunk of money that I wanted to invest since January, but have been so hesitant (I've invested small amounts here and there but still have a good amount in cash waiting for a pullback
Sell some puts OTM on some positions or indexes you like. You get the best of both worlds either way (entrance at pullback level or collect the premium if market goes up).
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