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Investing / Wwyd with $25K of cash right now you don't need for next 20 yrs?
Nov 24, 2021
Wwyd with $25K of cash right now you don't need for next 20 yrs?
Would you go all into investments? Consider myself a prudent investor. I get timing the market doesn't work and investing a lump sum is better over a long time horizon. But would you put all of it in? I'm getting a little analysis paralysis trying to think of when and how to invest when I know some confident people will say 100% VTSAX or VT! But, wwyd? I have no intention of needing that money for 20 years. In total I have about 40K invested through 401ks and Roth IRAs and this big position in cash. Thanks!
Replies (4)
Nov 24, 2021
@Isaac965, dollar cost average. If putting it all to work doesn't feel right, then it's not right for you. I completely understand where you're coming from though with inflation figure, rates going up, supply chain issues and everything else! DCA into index funds and maybe venture out of the US with a small allocation too via VTI or VEU.. only mentioning those since you mention VTSAX and VT (I'm not a financial advisor).
Nov 25, 2021
@Julie186, right?! It's nerve-wracking and dca is the route I was thinking too.
Nov 24, 2021
@Isaac965, create some kind of plan and stick to it. Waiting around won't do you much good. I did that back in 2012 thinking that the market crash was immiment and I totally missed by not investing for a few yrs. If you think the broad market is overvalued, check out small cap value funds. They're poised to do really well but then again I too am not an advisor!
Nov 25, 2021
@Will368, practical feedback, thanks for it.