I want to invest into VT for the long term (10+ years). The banking crisis and uncertain economic conditions are making me hesitant though. I can't stomach a big drop in the market after investing a large sum.

Any suggestions on what to do in terms of timing?

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username082920 t1_jedggl2 wrote on March 31, 2023 at 5:28 AM

I would do either the Boglehead 3 Fund (60/20/20 Total US, International, Bonds) or 70% S&P 500, 30% Total US Bonds.

longshower024 OP t1_jedgxd3 wrote on March 31, 2023 at 5:33 AM

What about the timing of the investment? DCA, lump sum, or something else?

username082920 t1_jedi8c0 wrote on March 31, 2023 at 5:49 AM

I would just make the lump sum personally.

nkyguy1988 t1_jedg0j6 wrote on March 31, 2023 at 5:23 AM

How long is long term?

You do realize that through all of this uncertainty that the market is up about 6% YTD?

What would I do? Invest it, then delete the app from my phone and not look at it for a year.

longshower024 OP t1_jedg3c2 wrote on March 31, 2023 at 5:23 AM

Long term = 10+ years

Grevious47 t1_jedk9t2 wrote on March 31, 2023 at 6:14 AM

Something you have to realize about longterm investing...

Today you buy $100k of a stock fund and you get 1000 shares worth $100. The next day the markey crashes and drops 80% of its value. How many shares do you own now? Well...still 1000, they are just $20 a share now. That only matters if you withdraw the money then. Almost certainly in 10 years those shares will be worth more than $100 a share...and you still have 1000 shares.

Number of shares matters. Value of shares only matters when you cash out. If you are longterm investing what the market is doing right now doesnt really matter.

nkyguy1988 t1_jedg6kg wrote on March 31, 2023 at 5:24 AM

Then why are you worried about short term fluctuations?

longshower024 OP t1_jedgbdp wrote on March 31, 2023 at 5:26 AM

I'm new to investing and have always defaulted to just keeping my money in savings. Investing this sum makes me a bit nervous I guess since it's a paradigm shift for me.

nkyguy1988 t1_jedgf7g wrote on March 31, 2023 at 5:27 AM

You have to take emotions out of it and think objectively. Good investing is emotionless.

longshower024 OP t1_jedguzf wrote on March 31, 2023 at 5:32 AM

So are you suggesting that I invest the amount all at once?

nkyguy1988 t1_jedh4rf wrote on March 31, 2023 at 5:36 AM

Lump sum out performs dollar cost averaging about 65-70% of the time.

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Bun4d t1_jedfg9g wrote on March 31, 2023 at 5:16 AM

DCA it over a course of a year and see what happens

Scrivener_23 t1_jediosj wrote on March 31, 2023 at 5:54 AM

DCA 10K a month whilst earning over 4% on balance.

macbookpro33 t1_jedjno1 wrote on March 31, 2023 at 6:06 AM

dollar cost average $5k every month, keep the rest in a money market fund (which will give you 4% plus guaranteed and you can deploy your capital gradually over the next 12-18 months)