to invest now or wait til later

[yellow]

Hi guys, I have been letting my retirement funds resting in the money market in Vanguard because I heard it's very expensive to buy in right now. But I also heard that we should not time these things. Would you recommend just buying in now to wait until until the market is lowered a bit? Thanks in advance

[FIREshrink]

You can't predict the future. On average the market goes up. Buy now. Do you have an investment plan?

[yellow]

I'm not sure what you mean by that? I have a sep-IRA but it's just in the money market bank right now. what do you recommend?

[djohnflatfeecfp]

http://awealthofcommonsense.com/2017/10/how-to-invest-at-all-time-highs/

[Dreamgiver]

In 20 years the current stock prices will look like an unbelievable bargain! Get out of the money market like now and buy equities.

[White.Beard.Doc]

A few questions.  How old are you?  How many years do you plan to work before you retire?  Are you willing to take some risk to grow your assets?

Currently in a money market fund, you won't lose your money to market risks, but the value will grow less than inflation every year.

Perhaps you could post what fund family or what investment options you have for your retirement funds, and your time horizon.  You might get some reasonable recommendations regarding how you might invest.  But right now no one on the forum has enough information to make any type of recommendation.

[cgossage]

Markets are expensive but by not investing at all you are losing money to inflation. I get that if you have saved up waiting for a downturn it’s tough to jump in now. I would invest over time so you don’t have to time the market all in one day. Its easier to process psychologically than trying to pick the perfect day to invest.

[Hatton]

You need to provide more details if you want help that makes sense.  Have you ever invested

 

[yellow]

Thanks guys. To answer the above questions, I'm 35 and currently my retirement SEP-IRA is in the in Vanguard money market funds. I want to be financially independent by 50 years old if possible. I'm relatively new to the investment area. Based on the responses so far, my take is everyone recommend to invest now rather than wait until it drops. Thanks again.

[adventure]

yellow wrote:

Thanks guys. To answer the above questions, I’m 35 and currently my retirement SEP-IRA is in the in Vanguard money market funds. I want to be financially independent by 50 years old if possible. I’m relatively new to the investment area. Based on the responses so far, my take is everyone recommend to invest now rather than wait until it drops. Thanks again.

Click to expand...

First, I recommend this:

https://www.whitecoatinvestor.com/you-need-an-investor-policy-statement/

Then,

https://www.whitecoatinvestor.com/how-to-write-an-investing-personal-statement/

Then,

you can worry about bonds/cash/equities/etc.

 

It really depends on other things, like the aforementioned questions.... For example, if you are going to retire on 12/31/2018, I'd be less willing to take risks than if I were planning to retire on 12/31/2028.

[The White Coat Investor]

yellow wrote:

Hi guys, I have been letting my retirement funds resting in the money market in Vanguard because I heard it’s very expensive to buy in right now. But I also heard that we should not time these things. Would you recommend just buying in now to wait until until the market is lowered a bit? Thanks in advance

Click to expand...

This is the third time in 24 hours I've heard a variation on this question. Maybe it's time to do another blog post on it.

[RocDoc]

Crixus wrote:

Before or after a deflator? The S&P was 1500 17 years ago. Using BLS understated inflation that translates into 2162 presently. A measely 20% real gain over 17 years. If you use real inflation you are underwater. We’ve been in depression for 17 years. A real bull would’ve seen the markets go up multiples.

 

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Crixus, I love you but please go easy with the comments to poor young yellow! I think yellow is new to investing and your bold comments might scare them too much.

[Hatton]

RocDoc wrote:

Crixus, I love you but please go easy with the comments to poor young yellow! I think yellow is new to investing and your bold comments might scare them too much.

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I was thinking the same thing.

[Dr. Mom]

yellow wrote:

Thanks guys. To answer the above questions, I’m 35 and currently my retirement SEP-IRA is in the in Vanguard money market funds. I want to be financially independent by 50 years old if possible. I’m relatively new to the investment area. Based on the responses so far, my take is everyone recommend to invest now rather than wait until it drops. Thanks again.

Click to expand...

1. Pick an asset allocation.  Probably somewhere between 60% Stock/40% Bond to 80% Stock/20% Bond.  Since you haven't done this before and are nervous, I would lean to the lower end.

2.  Divide the amount you want to invest by 12 months.  Then set automatic investment of the amounts into your asset allocation monthly.

3.  Forget about it for 12 months. Seriously!

4.  Read like crazy at least one book every month or two on investing.

5.  Come back in 12 months and rebalance to the same or slightly more aggressive of an asset allocation if you are feeling more comfortable after educating yourself more.

Good luck.  Happy investing!

[Hatton]

Dr. Mom wrote:

yellow wrote:

Thanks guys. To answer the above questions, I’m 35 and currently my retirement SEP-IRA is in the in Vanguard money market funds. I want to be financially independent by 50 years old if possible. I’m relatively new to the investment area. Based on the responses so far, my take is everyone recommend to invest now rather than wait until it drops. Thanks again.

Click to expand…

1. Pick an asset allocation.  Probably somewhere between 60% Stock/40% Bond to 80% Stock/20% Bond.  Since you haven’t done this before and are nervous, I would lean to the lower end.

2.  Divide the amount you want to invest by 12 months.  Then set automatic investment of the amounts into your asset allocation monthly.

3.  Forget about it for 12 months. Seriously!

4.  Read like crazy at least one book every month or two on investing.

5.  Come back in 12 months and rebalance to the same or slightly more aggressive of an asset allocation if you are feeling more comfortable after educating yourself more.

Good luck.  Happy investing!

Click to expand...

DoctorMom has given you a step by step plan.  The Vanguard tickers VTSAX, BND.