Good time to invest?

Apple / Eng
pMoI16

Go to company page Apple Eng

pMoI16
Jan 1, 2019 16 Comments

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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TOP 16 Comments
  • Microsoft / Eng
    Pickbot

    Go to company page Microsoft Eng

    Pickbot
    Avoid robo investors.
    Invest in low cost index funds instead.
    Jan 1, 2019 7
  • Amazon / Eng
    legend

    Go to company page Amazon Eng

    legend
    Wait for at most 1.5 years from now before deploying money to equity which is still high despite of recent correction. A loss is almost certain once the recession hits which is already overdue. Keep your money in savings account under FDIC ensured bank and thank me later.
    Jan 1, 2019 2
    • Don't try to time the market
      Jan 1, 2019
    • Amazon / Eng
      legend

      Go to company page Amazon Eng

      legend
      So you suggest going all in equity at once to a newbee at this point?
      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.
      Jan 1, 2019
  • Yelp / Eng
    welppp

    Go to company page Yelp Eng

    PRE
    OneMarket
    BIO
    Let’s play some pingpong or badminton
    welppp
    Yeah just buy S&p 500 index fund from charles schwab
    Jan 1, 2019 2
    • Paychex
      v1kOav

      Go to company page Paychex

      v1kOav
      I was looking to do this, did you do it and if yes since how long? Does it worth it? Thx
      Jan 1, 2019
    • Yelp / Eng
      welppp

      Go to company page Yelp Eng

      PRE
      OneMarket
      BIO
      Let’s play some pingpong or badminton
      welppp
      I did it since December 2017. And I have been average down. I think you should.

      I personally buy 40% SCHF and 60% SCHB :)
      Jan 1, 2019
  • Microsoft / Eng
    Tier 1

    Go to company page Microsoft Eng

    Tier 1
    When do you need the money back?

    How old are you? Do you have other savings?
    Jan 1, 2019 1
    • Apple / Eng
      pMoI16

      Go to company page Apple Eng

      pMoI16
      OP
      Age 35. Don’t need the money anytime soon (~5-ish years). Have some cash in my savings account. Newbie investor.
      Jan 1, 2019