I’m thinking of investing ~$20k in robo-investors (wealthfront, betterment etc.). Not sure if it’s the right time to invest though - given the recent market rout. Am I better off parking the cash in a high yield savings account?
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Invest in low cost index funds instead.
I was around in 2008 and have done that (had a newbee friend invest bulk of his savings in an equity mutual fund in January when Indian market peaked. He was resisting the temptation for a few years but finally gave in. Within a few months lost 50%). He never invested after that.
I think "never lose money" comes before "never time the market". Once you lose 50%, you will have to gain 100% to get back to the starting point. It's easy to lose 50% in case of a recession.
Yield curve is about to invert. Fed is increasing rates and reducing liquidity by selling back bonds. Recessions occur every ~10 years and it's almost that much since the last one. Without the heroine shot of Trump's tax cuts, there might have been one already. Many experts are claiming that recession is close and may hit by 2020.
I wouldn't recommend another newbee to get into equity all in at this point, index fund or otherwise. At most he should do dollar cost averaging by moving a bit every month from savings to index fund over at least an year.
I personally buy 40% SCHF and 60% SCHB :)
How old are you? Do you have other savings?