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

Reply to comment by nkyguy1988 in I want to invest in VT by longshower024

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.