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  • RogueDadMD
    replied
    Regarding @Crixus, even a broken clock gives the correct time twice a day.

    He's right -- eventually the market will drop, and it may even be a precipitous and "unexpected" drop due to whatever bubble he mentions.  There's always someone predicting a bubble, and sometimes those individuals are correct.  If you're wealthy enough to NOT invest in the market, then sure, sit on the cash.

    Otherwise you to do something to have the money work for you.  The billionaires in the world don't put all their money into VTI and forget about it, but they have both the willingness and opportunity to pursue alternative investments that most of us can't/won't pursue.

    Some of them pursued those opportunities and used them to BECOME wealthy, but once you are wealthy, it is a case of the rich getting richer, because the opportunities are more plentiful and the risk of a failure (to your personal and family well being) is much lower, so it easier to pursue them.

    Also the tax code provides more opportunities to recover from failure when your losses are in non-traditional investments.  A depreciating piece of real estate can be used to minimize tax burdens while the asset itself in the real world is still unchanged and can be levearaged for future gain; certainly more than tax loss harvesting a 20% drop in VTI..

    Leave a comment:


  • Hatton
    replied
    Yellow you will always hear people saying the market is too high or a giant crash is coming.  Usually they are wrong.  Take Dr Moms advice and start learning.  Ignore the chronic doom people who advocate for gold coins no matter what is going on.  You are young so the power of compounding is in your favor.  You could do it today online.

    Leave a comment:


  • yellow
    replied
    Thanks so much. I will follow this formula Dr Mom. Sounds like it’s time to put the money from money market fund into investment despite it being so high right now.

    Leave a comment:


  • StarTrekDoc
    replied
    That wouldn't be Crixus now, right?  Ever ask a corner preacher to tone it down for the visitors?  There's some truth in what he says in many cases-- just presented a bit over the top

    My hope is that the OP takes the time to hit WCIs blogs a learn a little to find out where his/her comfort zone is.

    OP has been on the sidelines on one of the deepest Bull runs and was skittish before on jumping in; now is even harder decision as where is the pinnacle/top?  Alas, 15years can be fine, but tell those who jumped in Oct 16 1997 and retired in late 2007.

     

    OP may be crushing it already since all the $$ are in cash.  We simply don't know -- right now, the possible best course could be lottery tickets

    Leave a comment:


  • Dr. Mom
    replied
    Yellow- Ignore Crixis's trolling comments.  You have enough fear.

    Leave a comment:


  • Dr. Mom
    replied










    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.
    Click to expand...


    I'll make it even easier since even a two fund portfolio was scary to my daughter when she was starting out.  Pick a Vanguard Life Strategy Fund (Moderate Growth gives you a static 60/40)  or a Target Date Retirement Fund that will start more aggressively but move more conservatively as you near retirement.  You will then invest automatically every month into one fund and let Vanguard take care of the rebalancing.  You can change the investments later as you learn more.  On the other hand, you may learn enough to fully appreciate the elegant simplicity of staying with these funds.

    Leave a comment:


  • Hatton
    replied







    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.

    Leave a comment:


  • Dr. Mom
    replied




    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!

    Leave a comment:


  • Hatton
    replied


    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.
    Click to expand...


    I was thinking the same thing.

    Leave a comment:


  • RocDoc
    replied




    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.

     
    Click to expand...


    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.

    Leave a comment:


  • The White Coat Investor
    replied




    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.

    Leave a comment:


  • adventure
    replied




    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.

    Leave a comment:


  • yellow
    replied
    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.

    Leave a comment:


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

     

    Leave a comment:


  • cgossage
    replied
    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.

    Leave a comment:

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