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We have a bit over $100k sitting around collecting dust. The majority of it can be invested for a long term (10+ yrs). Is this the best time to invest or is it better to wait for a correction?
We have a bit over $100k sitting around collecting dust. The majority of it can be invested for a long term (10+ yrs). Is this the best time to invest or is it better to wait for a correction?
Thanks
The standard advice in this situation is to invest incrementally, maybe five percent this month, and so on.
Some buying opportunities may arise over the next couple of months: tax-harvesting in December, budget negotiations in January, debt ceiling negotiations in February, the start of tapering in March, the Congressional election campaigns over the summer and into the fall, plus of course shifts in underlying economic and company fundamentals, and possible black swan events.
Such events as the above may cause more or less volatility, but no one knows in exactly what direction, to what extent, or for how long.
Over a ten year period, if you have confidence in the US economy, it should all smooth out and you will at least keep pace with overall growth provided that you have sufficient diversity.
The standard advice in this situation is to invest incrementally, maybe five percent this month, and so on.
Some buying opportunities may arise over the next couple of months: tax-harvesting in December, budget negotiations in January, debt ceiling negotiations in February, the start of tapering in March, the Congressional election campaigns over the summer and into the fall, plus of course shifts in underlying economic and company fundamentals, and possible black swan events.
Such events as the above may cause more or less volatility, but no one knows in exactly what direction, to what extent, or for how long.
Over a ten year period, if you have confidence in the US economy, it should all smooth out and you will at least keep pace with overall growth provided that you have sufficient diversity.
Good Luck!
Thanks.
I'm not going to manage it myself. I'm was going to meet with a $ manager and have them invest and diversify it as they see fit. Someone from Merryl probably. Just wasn't sure if I should wait to meet with them and fork over the $ yet or give it a few months to see if the mkt takes a nosedive.
Bonds, stocks, foreign currency, trust, gold and some cash, bitcoin (the last one I m not sure)
With cash remaining u can buy when market collapse. Gold go up....
The eggs in my basket would be diversified and then managed by the Merryl rep. I would think he/she would keep his/her eye on the mkt and re-distribute my eggs when advantageous according to the intelligence his/her organization provides to them. If they think gold, stocks, foreign currency, etc. is right for me then that's where they'll put some of the $ I guess.
In terms of cash, I'll have enough in a high yield savings account to any foreseen large future expenses (vacation and that sort of thing).
I just wonder if it's the right time to talk with a rep or if I should wait, don't want to waste my time.
I just wonder if it's the right time to talk with a rep or if I should wait, don't want to waste my time.
You could always direct the money manager to stagger the allocation over time, according to his best sense of market opportunity.
Another important consideration is the management fee, assuming a fee-based advisor rather than per-trade commissions. Advisor/management fees usually range from 0.75% to 1.25% of assets per year, billed quarterly. Make sure they charge you no more than 0.75%, otherwise shop around (0.50% is rare, perhaps in case of good friend and with a large balance).
You could always direct the money manager to stagger the allocation over time, according to his best sense of market opportunity.
Another important consideration is the management fee, assuming a fee-based advisor rather than per-trade commissions. Advisor/management fees usually range from 0.75% to 1.25% of assets per year, billed quarterly. Make sure they charge you no more than 0.75%, otherwise shop around (0.50% is rare, perhaps in case of good friend and with a large balance).
We have a bit over $100k sitting around collecting dust. The majority of it can be invested for a long term (10+ yrs). Is this the best time to invest or is it better to wait for a correction?
Thanks
When you are looking at a long term investment such as 10 years +, it doesn't really matter when you get in unless the stock market is experiencing a crash. With that being said, I do think now is a good time to invest. The market usually does well around Thanksgiving and the weeks after. I think our economy is still growing at a healthy rate. There is still nowhere else to put your money. You could start by investing half now. You don't need to put all your money to work all at once. New investors shouldn't try to time the market. Take your emotions out of the equation when you invest.
We have a bit over $100k sitting around collecting dust. The majority of it can be invested for a long term (10+ yrs). Is this the best time to invest or is it better to wait for a correction?
If it were me, then I would put most of that money into a small cap ETF right now. (In fact, I went long on one just this morning). I would not suggest doing this for a newbie, however.
I have years of investing experience and have developed a good system for when to buy and sell securities. It took me a long time to get to this point.
Worse thing is to wait... Your money in cash don't bring you anything. In fact you are losing right now every day, you have probably a 0.5% when you can make 5% at least. If the $ tanks next year you will lose a lot.
when market collapse, keep cool head and keep invested and wait market comes back. It will take 2 years to get your money back. Profit to invest more....
I have seen 1990, 2001 and 2008 crisis and we get back all our money. The guys who lost money are the guy who think they are smarter . They are usually greedy Suckers.... Became upset and sell at lost cost.
My bank charge me less than 1 % on my capital invested.
Then ditch this useless USA nationality so you are free from irs and move to a country which tax on residence and not on your nationality.
Singapore,Saudi,.... You can live from your interest only and still visit the USA with a tourist visa.
But I think this is too much to ask.... :-) only free men got freedom !
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